Lease & assignability

What it is

Whether the business's real estate lease can actually transfer to a new owner, on what terms, and for how long — not just whether the current lease looks fine as written.

Why it matters

A great business at a location you can't keep is a much worse deal than it looks on paper. Landlords can block assignment outright, use the ownership change as leverage to push rent up, or simply decline to renew — and lease problems are a common reason SBA deals stall or fall apart late, after most of the diligence work is already done.

What to look for

• Remaining lease term shorter than your investment horizon or your SBA loan term
• An assignment clause that requires landlord consent "in their sole discretion," with no reasonableness standard
• Below-market rent that resets to market at the next renewal
• Personal guarantees the current owner made that you'd need to replace with your own