Before you spend time talking to Bankers and other lenders about the possibility of an SBA loan it makes a lot of sense to talk to your landlord first.
Why? Just about SBA lender is going to want your landlord to sign 2 important documents.
Assignment of Lease with a term including renewal options that equals or exceeds loan term. In most cases 10 years or more. Also there should be a requirement the lessor provide a 60 day written notice of default to the Lender with an option to cure the defaults.
Landlord Waiver – Gives the Lender access to the leased premises to sell fixtures in case of default.
Out of the two agreements the Landlord Waiver causes the most concern. This is very rarely implemented because the cost involved for the Lenders exceeds any salvage value they would obtain.
Most landlords are fine with signing these documents but there are a few “Nervous Nellys” who think if the loan goes bad the lender will be showing up to rip the walls apart in an attempt to get any value out of the fixtures that they might be able to liquidate.
Expressing your desire up front that you want to invest in their property but this is what the SBA requires will do a lot to get an initial verbal buy-in from your landlord.