SBA Environmental Review Requirements - Phase I ESA Requirement

In 2008, the U.S. Small Business Administration (SBA) revised its procedures under the Lender & Development Companies Loan Programs (SOP 50-10(5)). Some of the key changes are procedures related to environmental assessments detailed under the Environmental Policies & Procedures requirements.

The goal of the policy is to identify properties that have a higher risk for environmental contamination, and to assure that if contamination is present, it is addressed in a manner that reduces the potential liability of SBA and the lender. The basic structure is SBA requires an Environmental Investigation of ALL COMMERCIAL property loans it is securing; The level of the Environmental Investigation will depend on the risks for contamination.

The determination of the appropriate level of Environmental Investigation will follow a formal process path, so that Lenders can quickly determine what documentation SBA will require for individual loans. At a minimum, the investigation will require an evaluation of current and past uses, and completion of an Environmental Questionnaire. The SBA Environmental Policy also provides specific guidance on steps required based on the results of the environmental investigation.

Here are two links for more information:

Summary of SBA Environmental Review Requirements

Subsequent Revision to SBA Environmental Review Requirements

Caltha LLP assists prospective Buyers and their Lenders in meeting SBA environmental review requirements. To requiest a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website