{"ok":true,"canonical_url":"https://dealroom.so/glossary/phase-i-environmental-report","api_url":"https://dealroom.so/api/public/glossary/phase-i-environmental-report","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":"phase-i-environmental-report","term":"Phase I environmental report","aka":"Phase I Environmental Site Assessment","group":"Reading the business","definition":"An initial environmental assessment of a property to identify potential contamination (Recognized Environmental Conditions). It involves site inspection and records review, not soil testing.","what_it_means":"Required for SBA 7(a) loans involving real estate if an Environmental Questionnaire reveals potential issues. A qualified environmental consultant performs it. If the Phase I identifies significant concerns, the lender may require a Phase II, which involves invasive testing and can delay or kill a deal.","url":"https://dealroom.so/glossary/phase-i-environmental-report","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-reports","term":"Environmental reports","url":"https://dealroom.so/glossary/environmental-reports"},{"slug":"environmental-consultant","term":"Environmental consultant","url":"https://dealroom.so/glossary/environmental-consultant"},{"slug":"recognized-environmental-condition","term":"Recognized Environmental Condition","url":"https://dealroom.so/glossary/recognized-environmental-condition"},{"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 happens if a required environmental report (Phase I ESA) identifies potential contamination?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-required-environmental-report-phase-i-esa-identifies-potential-contamina"},{"question":"What if the lender requires additional environmental due diligence beyond a Phase I report?","url":"https://dealroom.so/sba-7a/questions/what-if-the-lender-requires-additional-environmental-due-diligence-beyond-a-phase-i-report"},{"question":"For real estate included in an acquisition, what are the specific requirements for an environmental Phase I report?","url":"https://dealroom.so/sba-7a/questions/for-real-estate-included-in-an-acquisition-what-are-the-specific-requirements-for-an-envir"},{"question":"If the acquired business owns its real estate, are environmental due diligence reports (e.g., Phase I) always mandatory?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-owns-its-real-estate-are-environmental-due-diligence-reports-e-g-"},{"question":"If the acquired business has its real estate, are environmental due diligence reports like a Phase I ESA always required?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-its-real-estate-are-environmental-due-diligence-reports-like-"},{"question":"When is a Phase II Environmental Site Assessment required for a 7(a) loan, beyond a Phase I?","url":"https://dealroom.so/for-lenders/questions/when-is-a-phase-ii-environmental-site-assessment-required-for-a-7-a-loan-beyond-a-phase-i"}]},"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 — Phase I environmental report","url":"https://dealroom.so/glossary/phase-i-environmental-report","source_type":"DealRoom Data"}}