{"ok":true,"canonical_url":"https://dealroom.so/glossary/environmental-issue","api_url":"https://dealroom.so/api/public/glossary/environmental-issue","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":"environmental-issue","term":"Environmental issue","group":"Reading the business","definition":"Potential contamination or regulatory non-compliance related to the business's property or operations. This is a liability that can be costly to remediate.","what_it_means":"For certain businesses or properties, the SBA requires an Environmental Questionnaire or a Phase I Environmental Site Assessment to identify potential issues. Unresolved environmental problems can delay or kill a deal, as lenders won't finance properties with significant unmitigated risk. Always get proper assessments.","url":"https://dealroom.so/glossary/environmental-issue","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"environmental-consultant","term":"Environmental consultant","url":"https://dealroom.so/glossary/environmental-consultant"},{"slug":"environmental-questionnaire","term":"Environmental Questionnaire","url":"https://dealroom.so/glossary/environmental-questionnaire"},{"slug":"phase-i-environmental-site-assessment","term":"Phase I Environmental Site Assessment","url":"https://dealroom.so/glossary/phase-i-environmental-site-assessment"},{"slug":"phase-ii-environmental-site-assessment","term":"Phase II Environmental Site Assessment","url":"https://dealroom.so/glossary/phase-ii-environmental-site-assessment"}],"related_questions":[{"question":"What if the business for acquisition has a history of environmental contamination issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-for-acquisition-has-a-history-of-environmental-contamination-issues"},{"question":"What if the acquired business has environmental contamination issues discovered during due diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-environmental-contamination-issues-discovered-during-due"},{"question":"What if a lender's internal loan review discovers a potential eligibility issue post-closing?","url":"https://dealroom.so/for-lenders/questions/what-if-a-lender-s-internal-loan-review-discovers-a-potential-eligibility-issue-post-closi"},{"question":"How long does it typically take for the SBA to issue a guaranty after lender approval?","url":"https://dealroom.so/sba-7a/questions/how-long-does-it-typically-take-for-the-sba-to-issue-a-guaranty-after-lender-approval"},{"question":"If an eligibility issue is discovered post-closing, what is the impact on the SBA guaranty?","url":"https://dealroom.so/for-lenders/questions/if-an-eligibility-issue-is-discovered-post-closing-what-is-the-impact-on-the-sba-guaranty"},{"question":"Can an SBA 7(a) loan be used to buy a business that has environmental issues?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-buy-a-business-that-has-environmental-issues"}]},"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 — Environmental issue","url":"https://dealroom.so/glossary/environmental-issue","source_type":"DealRoom Data"}}