{"ok":true,"canonical_url":"https://dealroom.so/glossary/leasehold-improvements","api_url":"https://dealroom.so/api/public/glossary/leasehold-improvements","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"leasehold-improvements","term":"Leasehold improvements","group":"Reading the business","definition":"These are modifications made to a leased property by the tenant to suit their business needs. They are assets that typically revert to the landlord at the end of the lease.","what_it_means":"When buying a business that leases its space, assess the value and remaining useful life of any Leasehold improvement. Understand who owns them and if you'll be compensated for them if you move or if the lease ends. Factor their depreciation into your financial projections, as they affect the business's Tangible asset value.","url":"https://dealroom.so/glossary/leasehold-improvements","official_sources":[],"related":[{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"related_questions":[{"question":"Can an SBA loan finance leasehold improvements for a business operating in leased premises?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-loan-finance-leasehold-improvements-for-a-business-operating-in-leased-premises"},{"question":"Can an SBA 7(a) loan finance significant leasehold improvements for a business being acquired?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-significant-leasehold-improvements-for-a-business-being-acquir"},{"question":"Can an SBA 7(a) loan cover leasehold improvements for a business operating in leased premises?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-leasehold-improvements-for-a-business-operating-in-leased-premis"},{"question":"What level of environmental due diligence is required for leasehold improvements only, without real estate acquisition?","url":"https://dealroom.so/for-lenders/questions/what-level-of-environmental-due-diligence-is-required-for-leasehold-improvements-only-with"},{"question":"Can a borrower's investment in leasehold improvements prior to loan closing count towards the equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-leasehold-improvements-prior-to-loan-closing-count-towards-"},{"question":"Can SBA 7(a) working capital funds be used for post-acquisition renovations or minor leasehold improvements?","url":"https://dealroom.so/sba-7a/questions/can-sba-7-a-working-capital-funds-be-used-for-post-acquisition-renovations-or-minor-leaseh"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Leasehold improvements","url":"https://dealroom.so/glossary/leasehold-improvements","source_type":"DealRoom Data"}}