Glossary · Reading the business
In short
These are potential liabilities from past or current environmental issues, like contaminated soil or hazardous waste. Buyers must assess these risks as they can lead to significant cleanup costs and legal problems.
The SBA requires an environmental review for most business acquisitions, starting with an Environmental Questionnaire. Depending on the business type or property history, a Phase I or even a Phase II Environmental Site Assessment might be required. You need to understand these potential liabilities and ensure they are addressed, either by the seller or through specific insurance, before 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.
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