Glossary · Reading the business
In short
Potential costs or legal obligations arising from a business's past or present environmental impact, such as contamination or regulatory non-compliance. These can be significant and unexpected.
The SBA requires an environmental review for certain business types or real estate involved in the deal. This typically starts with an Environmental Questionnaire, potentially leading to a Phase I or Phase II Environmental Site Assessment. Identify any red flags early, as these liabilities can severely impact the deal's viability or your future 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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