Glossary · Reading the business
In short
These are professional evaluations of a property to identify potential environmental contamination risks. They're crucial for understanding liabilities, especially if real estate is part of the acquisition.
If your acquisition includes real estate, the SBA generally requires an Environmental Questionnaire. Depending on the responses and property history, a Phase I Environmental Site Assessment may be needed. This report identifies Recognized Environmental Conditions. If red flags appear, a more in-depth Phase II Environmental Site Assessment might be required, which could impact the deal's viability or cost.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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