Glossary · Reading the business
In short
Adherence to environmental laws, regulations, and standards. You need to ensure the business meets these standards to avoid fines, legal issues, and costly remediation after you buy it.
Your due diligence must verify the business's environmental compliance. This includes reviewing permits, licenses, waste disposal records, and any past environmental audits. The SBA and your lender will require an Environmental Questionnaire, and potentially a Phase I Environmental Site Assessment, to confirm there are no Recognized Environmental Conditions that could jeopardize the collateral or your future operations.
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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