{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-i-am-acquiring-is-located-in-a-leased-property","api_url":"https://dealroom.so/api/public/questions/what-happens-if-the-business-i-am-acquiring-is-located-in-a-leased-property","question":"What happens if the business I am acquiring is located in a leased property?","topic":"Real estate","audience":"borrower","bot_mode":"buyer","short_answer":"If the business operates in a leased property, the SBA 7(a) loan can still be used for the acquisition, but the lease terms will be reviewed, and an assignment of lease may be required.","rule":"The lender will review the lease agreement to ensure its terms are acceptable and that there are sufficient remaining years on the lease (including options to renew) to match the loan term. An assignment of the lease from the seller to the buyer, often with landlord consent, is required.","example":"A buyer acquires a restaurant operating in a leased space with 5 years remaining on the lease and two 5-year options. The SBA 7(a) loan for the acquisition would likely have a 10-year term, covering the initial lease and one option.","what_lenders_check":"Lenders ensure the lease term is adequate, the landlord consents to the assignment, and the lease does not contain clauses detrimental to the business's operation or the lender's collateral position. Environmental due diligence may also be required depending on the property type.","required_facts":["Leased property","Lease terms","Assignment of lease","Landlord consent","Environmental due diligence"],"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":[{"question":"Can I include the purchase of commercial real estate, where the business operates, within the same SBA 7(a) loan for a $2 million deal?","url":"https://dealroom.so/sba-7a/questions/can-i-include-the-purchase-of-commercial-real-estate-where-the-business-operates-within-th"},{"question":"What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?","url":"https://dealroom.so/sba-7a/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial"},{"question":"Can I use an SBA 7(a) loan to purchase the real estate where the business operates?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-the-real-estate-where-the-business-operates"},{"question":"What kind of environmental due diligence is required if the business real estate is included in the loan?","url":"https://dealroom.so/sba-7a/questions/what-kind-of-environmental-due-diligence-is-required-if-the-business-real-estate-is-includ"},{"question":"Can an SBA 7(a) loan be used to buy a business that has environmental issues?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-buy-a-business-that-has-environmental-issues"},{"question":"If the business leases its operational property, can an SBA 7(a) loan still finance the acquisition?","url":"https://dealroom.so/sba-7a/questions/if-the-business-leases-its-operational-property-can-an-sba-7-a-loan-still-finance-the-acqu"}],"related_terms":[{"term":"Leased Property","url":"https://dealroom.so/glossary/leased-property"},{"term":"Equity in real estate","url":"https://dealroom.so/glossary/equity-in-real-estate"},{"term":"Business real estate","url":"https://dealroom.so/glossary/business-real-estate"},{"term":"Passive real estate business","url":"https://dealroom.so/glossary/passive-real-estate-business"},{"term":"Real Estate","url":"https://dealroom.so/glossary/real-estate"},{"term":"Owner-occupied business real estate","url":"https://dealroom.so/glossary/owner-occupied-business-real-estate"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-i-am-acquiring-is-located-in-a-leased-property","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."]}