Glossary · Reading the business
In short
The presence of hazardous substances in the environment, like soil or water, above natural background levels. This is a red flag for buyers, signaling potential significant cleanup costs and regulatory issues.
Discovery of environmental contamination during due diligence will trigger further investigation, often a Phase II Environmental Site Assessment. The SBA requires environmental reviews for certain businesses or properties. Ensure the seller remediates or you adjust the purchase price to account for cleanup costs.
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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