Glossary · Reading the business
In short
This is your right to possess and use a property for a defined period under a lease agreement. It's an asset, even if you don't own the real estate.
When acquiring a business that leases its space, evaluating the existing leasehold interest is vital. You need to ensure the lease term is long enough (often matching your loan term plus options) and that it's assignable to you. A strong leasehold interest can be valuable collateral for your SBA loan.
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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