{"ok":true,"canonical_url":"https://dealroom.so/glossary/environmentally-sensitive-industry","api_url":"https://dealroom.so/api/public/glossary/environmentally-sensitive-industry","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":"environmentally-sensitive-industry","term":"Environmentally Sensitive Industry","group":"The loan itself","definition":"This is an industry identified by the SBA as having a higher potential for environmental contamination or regulatory issues. Businesses in these industries require extra environmental due diligence for an SBA loan.","what_it_means":"If your target business operates in an Environmentally Sensitive Industry (e.g., dry cleaning, auto repair, manufacturing), the lender will require at least an Environmental Questionnaire. Depending on the questionnaire's findings, a Phase I Environmental Site Assessment or even a Phase II might be mandated to assess potential contamination and ensure compliance. This impacts your timeline and costs.","url":"https://dealroom.so/glossary/environmentally-sensitive-industry","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":"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"},{"slug":"hazardous-material-use","term":"Hazardous material use","url":"https://dealroom.so/glossary/hazardous-material-use"}],"related_questions":[{"question":"How is my prior management experience evaluated if it's in a different industry?","url":"https://dealroom.so/sba-7a/questions/how-is-my-prior-management-experience-evaluated-if-it-s-in-a-different-industry"},{"question":"Does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-s-industry-affect-its-eligibility-for-an-sba-7-a-loan"},{"question":"Is prior experience in my specific industry required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-prior-experience-in-my-specific-industry-required-for-an-sba-7-a-loan"},{"question":"Will acquiring a business in a restricted industry (e.g., gambling, passive investing) kill approval?","url":"https://dealroom.so/sba-7a/questions/will-acquiring-a-business-in-a-restricted-industry-e-g-gambling-passive-investing-kill-app"},{"question":"Does my business's industry type affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-my-business-s-industry-type-affect-its-eligibility-for-an-sba-7-a-loan"},{"question":"How does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-my-business-s-industry-affect-its-eligibility-for-an-sba-7-a-loan"}]},"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 — Environmentally Sensitive Industry","url":"https://dealroom.so/glossary/environmentally-sensitive-industry","source_type":"DealRoom Data"}}