{"ok":true,"canonical_url":"https://dealroom.so/glossary/renovations-or-leasehold-improvements","api_url":"https://dealroom.so/api/public/glossary/renovations-or-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":"renovations-or-leasehold-improvements","term":"Renovations or Leasehold Improvements","group":"Reading the business","definition":"These are modifications made to a leased property to customize it for the business's needs. Renovations are general upgrades, while leasehold improvements are specific to a tenant.","what_it_means":"7(a) loan funds can be used for renovations or leasehold improvements necessary for the business acquisition. Ensure these costs are clearly outlined in your use of proceeds. If you're leasing, understand who owns these improvements after the lease term and factor that into your long-term business plan.","url":"https://dealroom.so/glossary/renovations-or-leasehold-improvements","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"}],"related_questions":[{"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"},{"question":"Can I use an SBA 7(a) loan to finance significant post-acquisition renovations or improvements?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-finance-significant-post-acquisition-renovations-or-improveme"},{"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"}]},"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 — Renovations or Leasehold Improvements","url":"https://dealroom.so/glossary/renovations-or-leasehold-improvements","source_type":"DealRoom Data"}}