Landlord Agreement question for SBA 7(a) loan

May 24, 2023

by a searcher from Harvard University - Harvard Business School in Alexandria, VA, USA

I'm under LOI for a commercial landscaping business whose primary yard/facility is located on an Army base. Their contract with the government grants the company property on the base to store their equipment, vehicles, office etc.

Any idea who would sign as the landlord for the Landlord's Agreement that the SBA requires? Since the government technically is the landlord, I would assume the Contract Officer Representative for the contract.

Thanks!

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I agree with the comments already provided. The real key for the lender is going to be how important this specific location and lease are to the business. If the specific location does not impact the business, it will likely be less of an issue. If the business needs to be on base as a large percentage of their business is on base, then being sure they have a landlord waiver is going to be more important to the lenders. Happy to discuss at any time at redacted Good luck.

Reply by a professional
from University of Minnesota in Minneapolis, MN, USA

Agreed with the above. I would focus less on finding the "right" signor on the lease, and more on using common sense to make sure you get the documentation and permissions needed to preserve the necessary business relationships. Try to keep open lines of communication with Seller, Lender, and Landlord. Have an open mind, be friendly, and get it figured out! Good luck!

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