Glossary · Reading the business
In short
These are modifications made to a leased property to customize it for the business's needs. Renovations are general upgrades, while leasehold improvements are specific to a tenant.
7(a) loan funds can be used for renovations or leasehold improvements necessary for the business acquisition. Ensure these costs are clearly outlined in your use of proceeds. If you're leasing, understand who owns these improvements after the lease term and factor that into your long-term business plan.
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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