{"ok":true,"canonical_url":"https://dealroom.so/glossary/tenant-improvement","api_url":"https://dealroom.so/api/public/glossary/tenant-improvement","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":"tenant-improvement","term":"Tenant Improvement","group":"Reading the business","definition":"Modifications made to a leased commercial space to customize it for the tenant's specific business needs. These can range from minor cosmetic changes to major structural renovations.","what_it_means":"If the business you're buying operates in a leased space, understand what existing tenant improvements are in place and who paid for them. If new improvements are needed, factor these costs into your total project costs, as they can be financed with an SBA loan. Negotiate these with the landlord.","url":"https://dealroom.so/glossary/tenant-improvement","official_sources":[],"related":[{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"tenant-improvement-allowance","term":"Tenant Improvement Allowance","url":"https://dealroom.so/glossary/tenant-improvement-allowance"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Can a tenant improvement allowance from a new landlord count towards my equity injection for a leasehold acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-tenant-improvement-allowance-from-a-new-landlord-count-towards-my-equity-injection-f"},{"question":"If I buy a business that leases its property, can the SBA 7(a) loan finance tenant improvements?","url":"https://dealroom.so/sba-7a/questions/if-i-buy-a-business-that-leases-its-property-can-the-sba-7-a-loan-finance-tenant-improveme"},{"question":"Can SBA 7(a) loan funds be used to pay for tenant improvements in a leased space post-acquisition?","url":"https://dealroom.so/sba-7a/questions/can-sba-7-a-loan-funds-be-used-to-pay-for-tenant-improvements-in-a-leased-space-post-acqui"},{"question":"Can an SBA 7(a) loan finance tenant improvements on leased property if the lease term matches the loan term?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-tenant-improvements-on-leased-property-if-the-lease-term-match"},{"question":"Can I finance a significant leasehold improvement project with my SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-i-finance-a-significant-leasehold-improvement-project-with-my-sba-7-a-acquisition-loan"},{"question":"What triggers the need for an Environmental Questionnaire (SBA Form 1081) for a leasehold improvement loan?","url":"https://dealroom.so/for-lenders/questions/what-triggers-the-need-for-an-environmental-questionnaire-sba-form-1081-for-a-leasehold-im"}]},"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 — Tenant Improvement","url":"https://dealroom.so/glossary/tenant-improvement","source_type":"DealRoom Data"}}