Glossary · Reading the business
In short
A review of government databases for environmental issues associated with a property. As a buyer, it identifies potential contamination liabilities that could cost you significant money.
Your SBA lender will require an Environmental Records Search as part of their due diligence for any real estate involved in the acquisition. This identifies potential "Recognized Environmental Conditions" (RECs) that might necessitate a Phase I Environmental Site Assessment. Ignoring these risks could leave you liable for expensive cleanup costs after closing.
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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