Glossary · Reading the business
In short
A breach of environmental laws or regulations. This is a major concern because violations can lead to hefty fines, clean-up costs, and legal liabilities for the new owner.
During due diligence, always check for past or current environmental violations, especially for businesses in industries with high environmental impact. A Phase I Environmental Site Assessment is often required by the SBA and lenders to identify potential risks. Unresolved violations are a significant liability and can halt a deal.
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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