{"ok":true,"canonical_url":"https://dealroom.so/glossary/phase-i-environmental-site-assessment","api_url":"https://dealroom.so/api/public/glossary/phase-i-environmental-site-assessment","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-site-assessment","term":"Phase I Environmental Site Assessment","aka":"Phase I ESA","group":"Reading the business","definition":"A professional investigation of a property's past and current uses to identify potential environmental contamination and liability.","what_it_means":"This assessment, performed by an environmental consultant, involves site visits, historical records review, and interviews, but no actual soil or water testing. It aims to identify Recognized Environmental Conditions. If RECs are found, the SBA or lender will typically require a Phase II ESA before loan approval. Factor this into your due diligence timeline and costs.","url":"https://dealroom.so/glossary/phase-i-environmental-site-assessment","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":"phase-ii-environmental-site-assessment","term":"Phase II Environmental Site Assessment","url":"https://dealroom.so/glossary/phase-ii-environmental-site-assessment"}],"related_questions":[{"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"},{"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"},{"question":"If a Phase I Environmental Site Assessment (ESA) identifies Recognized Environmental Conditions (RECs), what are the next steps for a lender?","url":"https://dealroom.so/for-lenders/questions/if-a-phase-i-environmental-site-assessment-esa-identifies-recognized-environmental-conditi"},{"question":"When is a Phase I Environmental Site Assessment (ESA) required for real estate collateral in a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-a-phase-i-environmental-site-assessment-esa-required-for-real-estate-collateral-in"},{"question":"When is an Environmental Questionnaire (e.g., Form 1081) sufficient for real estate collateral, without requiring a Phase I Environmental Site Assessment (ESA)?","url":"https://dealroom.so/for-lenders/questions/when-is-an-environmental-questionnaire-e-g-form-1081-sufficient-for-real-estate-collateral"},{"question":"Under what conditions is a Phase II Environmental Site Assessment required for 7(a) loan collateral?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-is-a-phase-ii-environmental-site-assessment-required-for-7-a-loan-co"}]},"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 Site Assessment","url":"https://dealroom.so/glossary/phase-i-environmental-site-assessment","source_type":"DealRoom Data"}}