Landlord Discussions for SBA 7(a) Business Acquisition

As there are several stakeholders when dealing in business acquisitions, one often-overlooked partner is the landlord. Yet, engaging in meaningful discussions with landlords can be the key to unlocking a smooth transition, especially when utilizing SBA 7(a) financing.

Here's why landlord discussions are crucial:

1. Lease Assumption Considerations: When acquiring a business, you’ll likely need to assume the existing lease agreement—unless it is set to expire in the coming months. Discussing this with the landlord upfront allows you to understand any lease transfer requirements, potential lease term adjustments, and other crucial details.

2. Securing Favorable Terms: By opening the lines of communication early, you have the opportunity to negotiate lease terms that align with your business goals.

3. Navigating SBA Compliance: The SBA has specific requirements when it comes to lease agreements. Engaging with landlords allows you to ensure that your lease terms meet these requirements, minimizing potential roadblocks during the financing process.

4. Building Relationships: Beyond the transactional aspect, landlord discussions are about building relationships. A positive rapport with your landlord can lead to future collaboration and support as your business grows.

So, before you finalize your business acquisition, don't forget to have that conversation with your landlord. It could be the difference between a smooth transition and unnecessary hurdles along the way and remember—TIME KILLS DEALS!