Glossary · Reading the business
In short
This is a legal right to occupy and use real property for a defined period under a lease agreement. For buyers, understanding the terms and duration of the business's lease is vital for operational stability and collateral.
If the business operates from leased premises, the Leasehold Estate is a key asset. The SBA will require a satisfactory lease with sufficient term remaining, typically matching or exceeding the loan term. Scrutinize the lease for assignment clauses, rent escalations, and renewal options; a short or non-assignable lease can be a deal killer.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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