Glossary · Doing the deal
Soil remediation
In short
The process of removing pollutants or contaminants from soil to prevent harm to human health or the environment. It's often required when buying property with a history of industrial use.
What it means in a deal
If your environmental due diligence (Phase I/II ESA) reveals soil contamination, you'll need a plan for soil remediation. This cost and responsibility can be a major negotiation point. Lenders will require this issue to be addressed, often before closing, to protect their collateral.
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 Soil remediation
- 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?
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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