Environmental Review Requirements Under New SBA 504 Refinance Program

In response to the significant volume of commercial real estate loans that will mature between now and December 31, 2012, the U.S. Small Business Administration (SBA) has launched a new, temporary 504 refinancing program. Structured much like the SBA's traditional 504 loan program, borrowers cooperate with third-party lending institutions and SBA-approved Certified Development Companies (CDC).

SBA began accepting applications for financing under this program on February 28 and will keep the program in effect until September 27, 2012. Congress authorized SBA to approve up to $15 billion in loans under this program ($7.5 billion in both fiscal 2011 and 2012). This funding is designed to help small business owners who are having difficulty refinancing loans because of record-high real estate values when the loans were originated.

SBA has indicated that the environmental review requirements for 504 refinancing will be the same as those of the SBA's standard 504 (and 7(a)) programs, as detailed under SOP 50 10 5(c). This includes mandatory Phase 1 environmental Site Assessment (ESA) for certain types of properties, and requirements for Transaction Screening Assessment or Records Search With Risk Assessment (RSRA) for other types of properties.

Caltha LLP assists Sellers, prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request 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