Glossary · Reading the business
In short
Assessments of a property's environmental condition, identifying potential contamination or regulatory compliance issues. These are crucial if the business owns or leases real estate.
For SBA 7(a) loans involving real estate, an environmental report (usually a Phase I Environmental Site Assessment) is often required. This assesses the risk of contamination from current or historical uses. If concerns arise, a Phase II may be necessary, which can significantly impact deal timelines and 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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