Glossary · Reading the business
In short
The process of cleaning up contaminated land, water, or air to meet environmental standards. As a buyer, you must understand any potential environmental issues and associated remediation costs before closing, as these can be substantial liabilities.
If a Phase I Environmental Site Assessment reveals a Recognized Environmental Condition (REC), further investigation (Phase II) might be needed. Any required environmental remediation must be completed, or a plan for completion and funding must be in place, before your SBA loan can close, to protect the lender and you from future liability.
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.
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