Glossary · People and paperwork
In short
This is a separate company, often owned by the seller, that holds the business's real estate. It's crucial to understand if you're buying just the business or also the property, or if you'll need a new lease.
Often, a seller's operating business leases its premises from a related real estate entity. If you're not buying the real estate, you'll need a new long-term lease with fair market rent. Ensure the real estate entity agrees to a Landlord Subordination Agreement, which is often required by SBA lenders.
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.
Know what you'll need before you apply
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