Glossary · Reading the business
In short
An assessment to identify potential environmental contamination or risks associated with the business property. This protects you from future liability and is often required by the SBA.
For properties involved in an SBA 7(a) loan, an environmental review (often a Phase I Environmental Site Assessment) is typically required to identify Recognized Environmental Conditions (RECs). If RECs are found, a Phase II Environmental Site Assessment may be necessary. This protects both you and the lender from environmental liabilities.
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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