{"ok":true,"canonical_url":"https://dealroom.so/glossary/phase-i-esa","api_url":"https://dealroom.so/api/public/glossary/phase-i-esa","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-esa","term":"Phase I ESA","aka":"Phase I Environmental Site Assessment","group":"Reading the business","definition":"A detailed environmental investigation of a property to identify potential contamination. Lenders often require this, especially for properties with historical industrial use or known risks.","what_it_means":"If the Transaction Screen reveals potential environmental issues, or if the property's history suggests a higher risk (e.g., auto repair, dry cleaners), your lender will require a Phase I ESA. This is a crucial step to protect you from inheriting costly environmental liabilities. Review the report carefully for Recognized Environmental Conditions (RECs).","url":"https://dealroom.so/glossary/phase-i-esa","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-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":"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 are the lender's responsibilities if a Phase I ESA identifies RECs?","url":"https://dealroom.so/for-lenders/questions/what-are-the-lender-s-responsibilities-if-a-phase-i-esa-identifies-recs"},{"question":"If a Phase I ESA recommends a Phase II, what are the lender's options if remediation costs are unknown or prohibitive?","url":"https://dealroom.so/for-lenders/questions/if-a-phase-i-esa-recommends-a-phase-ii-what-are-the-lender-s-options-if-remediation-costs-"},{"question":"What are a lender's responsibilities if a Phase I ESA identifies Recognized Environmental Conditions (RECs)?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-responsibilities-if-a-phase-i-esa-identifies-recognized-environmental-"},{"question":"What are the lender's responsibilities if a Phase I ESA identifies Recognized Environmental Conditions (RECs)?","url":"https://dealroom.so/for-lenders/questions/what-are-the-lender-s-responsibilities-if-a-phase-i-esa-identifies-recognized-environmenta"},{"question":"What steps should a lender take if a Phase I ESA identifies a Recognized Environmental Condition (REC)?","url":"https://dealroom.so/for-lenders/questions/what-steps-should-a-lender-take-if-a-phase-i-esa-identifies-a-recognized-environmental-con"}]},"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 ESA","url":"https://dealroom.so/glossary/phase-i-esa","source_type":"DealRoom Data"}}