Glossary · Reading the business
In short
A detailed environmental investigation of a property to identify potential contamination. Lenders often require this, especially for properties with historical industrial use or known risks.
If the Transaction Screen reveals potential environmental issues, or if the property's history suggests a higher risk (e.g., auto repair, dry cleaners), your lender will require a Phase I ESA. This is a crucial step to protect you from inheriting costly environmental liabilities. Review the report carefully for Recognized Environmental Conditions (RECs).
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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