Glossary · Doing the deal
In short
This is a mortgage on your leasehold interest in a property, rather than on the property itself. It allows you to use your long-term lease as collateral for a loan.
If the business you're buying leases its premises, your SBA lender might require a leasehold mortgage as part of the collateral package. This means the lender has a security interest in your lease, giving them rights if you default. You'll need landlord consent for this, usually through a landlord waiver.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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