{"ok":true,"canonical_url":"https://dealroom.so/glossary/hazardous-material-use","api_url":"https://dealroom.so/api/public/glossary/hazardous-material-use","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":"hazardous-material-use","term":"Hazardous material use","group":"Reading the business","definition":"This refers to the handling, storage, or disposal of any materials that pose a risk to health or the environment. It triggers environmental review and potential liability for the buyer.","what_it_means":"If the business uses or stores hazardous materials, even common ones like cleaning chemicals or automotive fluids, it immediately raises environmental concerns. You need to investigate past and present compliance with environmental regulations, permits, and disposal practices. Undiscovered contamination can lead to massive cleanup costs and personal liability post-closing.","url":"https://dealroom.so/glossary/hazardous-material-use","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":"environmentally-sensitive-industry","term":"Environmentally Sensitive Industry","url":"https://dealroom.so/glossary/environmentally-sensitive-industry"},{"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":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"}],"related_questions":[{"question":"What additional environmental due diligence is required for a 7(a) loan if the business handles hazardous materials?","url":"https://dealroom.so/for-lenders/questions/what-additional-environmental-due-diligence-is-required-for-a-7-a-loan-if-the-business-han"},{"question":"What are the consequences if SBA Form 1919 contains material omissions or misrepresentations?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-sba-form-1919-contains-material-omissions-or-misrepresentatio"},{"question":"Can a lender approve a material change to collateral without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-material-change-to-collateral-without-prior-sba-approval"},{"question":"What constitutes a 'material adverse change' that could affect my loan approval after application?","url":"https://dealroom.so/sba-7a/questions/what-constitutes-a-material-adverse-change-that-could-affect-my-loan-approval-after-applic"},{"question":"Which material servicing actions can a 7(a) lender take without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/which-material-servicing-actions-can-a-7-a-lender-take-without-prior-sba-approval"},{"question":"How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/how-does-an-unapproved-material-servicing-action-impact-the-sba-s-7-a-loan-guaranty"}]},"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 — Hazardous material use","url":"https://dealroom.so/glossary/hazardous-material-use","source_type":"DealRoom Data"}}