Glossary · Reading the business
In short
Further investigation, often involving soil or water sampling, triggered by concerns raised in a Phase I ESA. It identifies and quantifies environmental contamination.
If a Phase I ESA identifies Recognized Environmental Conditions (RECs), a Phase II is necessary to understand the extent of potential contamination. This assessment is critical for evaluating environmental liabilities that could impact the business's value or your personal risk as the new owner.
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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