{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-a-tenant-improvement-allowance-from-a-new-landlord-count-towards-my-equity-injection-f","api_url":"https://dealroom.so/api/public/questions/can-a-tenant-improvement-allowance-from-a-new-landlord-count-towards-my-equity-injection-f","question":"Can a tenant improvement allowance from a new landlord count towards my equity injection for a leasehold acquisition?","topic":"Leasehold Equity","audience":"borrower","bot_mode":"buyer","short_answer":"No, a tenant improvement allowance from a landlord cannot count towards your equity injection for an SBA 7(a) loan, as it is a landlord contribution, not equity from the borrower.","rule":"Equity injection must come from the borrower or eligible third-party sources (like a seller note or qualified gift/investor funds). A tenant improvement allowance is a contractual concession from the landlord, reducing the tenant's out-of-pocket expenses, but it does not represent invested capital from the borrower.","example":"If your landlord offers a $50,000 tenant improvement allowance, this reduces the cash you need to spend on leasehold improvements but does not count as part of your required 10% equity for a $500,000 project.","what_lenders_check":"Lenders verify that all equity comes from acceptable sources. Landlord contributions are not considered equity and cannot offset the borrower's required injection. They ensure proper accounting for all project costs and funding sources.","required_facts":["Allowance source","Landlord vs. borrower","Equity definition","Project funding"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[],"related_terms":[{"term":"Tenant Improvement Allowance","url":"https://dealroom.so/glossary/tenant-improvement-allowance"},{"term":"Tenant Improvement","url":"https://dealroom.so/glossary/tenant-improvement"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-a-tenant-improvement-allowance-from-a-new-landlord-count-towards-my-equity-injection-f","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}