{"ok":true,"canonical_url":"https://dealroom.so/glossary/de-minimis-condition","api_url":"https://dealroom.so/api/public/glossary/de-minimis-condition","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"de-minimis-condition","term":"De Minimis Condition","group":"The loan itself","definition":"This is a minor condition or issue that is considered insignificant and doesn't require further action by the lender or SBA. It's a \"too small to matter\" determination.","what_it_means":"In the context of environmental reviews or collateral analysis, a de minimis condition might be a small, non-threatening spill or minor damage that doesn't impact the property's value or pose a significant risk. Lenders are trained to identify these, so they don't hold up your loan.","url":"https://dealroom.so/glossary/de-minimis-condition","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"environmental-questionnaire","term":"Environmental Questionnaire","url":"https://dealroom.so/glossary/environmental-questionnaire"},{"slug":"recognized-environmental-condition","term":"Recognized Environmental Condition","url":"https://dealroom.so/glossary/recognized-environmental-condition"},{"slug":"collateral-analysis","term":"Collateral analysis","url":"https://dealroom.so/glossary/collateral-analysis"},{"slug":"material-risk","term":"Material Risk","url":"https://dealroom.so/glossary/material-risk"}],"related_questions":[{"question":"What if a Phase I ESA identifies a Recognized Environmental Condition (REC) but deems it a 'de minimis' condition?","url":"https://dealroom.so/for-lenders/questions/what-if-a-phase-i-esa-identifies-a-recognized-environmental-condition-rec-but-deems-it-a-d"},{"question":"When is life insurance on key principals a mandatory loan condition?","url":"https://dealroom.so/for-lenders/questions/when-is-life-insurance-on-key-principals-a-mandatory-loan-condition"},{"question":"What if a loan authorization requires a specific condition precedent to closing that is not met?","url":"https://dealroom.so/for-lenders/questions/what-if-a-loan-authorization-requires-a-specific-condition-precedent-to-closing-that-is-no"},{"question":"What steps should a lender take if a Phase I ESA identifies a Recognized Environmental Condition (REC)?","url":"https://dealroom.so/for-lenders/questions/what-steps-should-a-lender-take-if-a-phase-i-esa-identifies-a-recognized-environmental-con"},{"question":"What constitutes a \"material adverse change\" in a borrower's financial condition that requires lender action prior to closing?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-adverse-change-in-a-borrower-s-financial-condition-that-requir"},{"question":"When a Phase I Environmental Site Assessment (ESA) identifies a Recognized Environmental Condition (REC), what are the lender's subsequent responsibilities?","url":"https://dealroom.so/for-lenders/questions/when-a-phase-i-environmental-site-assessment-esa-identifies-a-recognized-environmental-con"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — De Minimis Condition","url":"https://dealroom.so/glossary/de-minimis-condition","source_type":"DealRoom Data"}}