Where the Borrower operates in leased premises and the lesser of 500,000 dollars or 30% of proceeds funds leasehold improvements, or of the collateral consists of leasehold improvements or attached fixtures and equipment, the SBA Lender obtains the lease; for 504 the term (and for 7(a) it should) equals or exceeds the loan term, and an assignment of lease and landlord's waiver should be obtained; if they cannot be, the term including Borrower-only renewals must cover the loan term and the file documents the attempt and reason. A ground lease financed with proceeds contains clauses on encumbering the leasehold, no modification or cancellation without lender consent, the lender's rights to acquire, reassign and sublease, share insurance and condemnation proceeds, and act on tenant default. Landlord reimbursement of tenant improvements pays the loan down (below the subsidy recoupment trigger) unless the working capital analysis already reflects it.
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