Glossary · Reading the business
In short
These are substances that pose a risk to health or the environment. Buyers need to know if a business has them because remediation costs can be enormous and legally binding.
For any business with real estate or certain operations, the lender will require an Environmental Questionnaire. If red flags arise, you might need a Phase I Environmental Site Assessment, and potentially a Phase II if contamination is suspected. Factor potential cleanup costs into your deal structure.
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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