Glossary · Reading the business
In short
This is an intrusive environmental study, including soil and water testing, conducted when a Phase I assessment identifies potential contamination (Recognized Environmental Conditions).
If your Phase I report flags significant environmental concerns, the lender will require a Phase II. This can delay your deal and add substantial cost. Be prepared for potential remediation requirements or be ready to walk away if the risks are too high.
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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