Glossary · Doing the deal
Environmental review costs
In short
These are expenses for assessing potential environmental hazards on a property, often required by lenders for real estate-backed deals. You pay these to ensure the property is clean and to protect yourself from future liability.
What it means in a deal
If the business owns real estate or operates in a sensitive industry, your lender will likely require an Environmental Questionnaire or a Phase I Environmental Site Assessment. These costs are part of your Total Project Costs and can often be financed by the SBA loan. Budget for these early.
Official sources
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.
Related terms
Common questions about Environmental review costs
- Is an environmental review needed if my SBA 7(a) loan includes real estate?
- What specific environmental review is required for commercial real estate included in an SBA loan?
- What specific environmental review steps are triggered if the real estate has a dry cleaning operation?
- Are there specific environmental review requirements for real estate included in an SBA 7(a) acquisition?
- If the commercial property being acquired requires significant environmental remediation, can the 7(a) loan cover these costs?
- If a Phase II Environmental Site Assessment identifies remediation costs, how does a lender treat these for a 7(a) loan?
Defined by CapBench 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.
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