Glossary · Doing the deal
Remediation plan
In short
A formal strategy to fix a problem, often environmental or operational, identified during due diligence. It outlines steps, timelines, and responsibilities to bring something into compliance or an acceptable condition.
What it means in a deal
If your environmental assessment (Phase I/II) uncovers an issue like contamination, a remediation plan will be required to address it. The lender and SBA will want to see a clear, costed plan. Often, the seller must fund or execute the cleanup before closing, or an escrow may be used for the buyer to manage it.
Official sources
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.
Related terms
Common questions about Remediation plan
- What if the acquired business's real estate has an environmental concern requiring remediation?
- 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?
- If a Phase I ESA recommends a Phase II, what are the lender's options if remediation costs are unknown or prohibitive?
- Is a comprehensive business plan mandatory for an SBA 7(a) loan?
- Is a detailed business plan necessary for an SBA 7(a) loan application?
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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