Since the latest revision to SBA’s SOP 5010 5 (C), that came out in October 2010, I have been asked some reoccurring questions in regards to the Environmental Requirements on 504 and 7a loans. One of those reoccurring questions is when there is a NAICS Codes match does it mean that I will have to have a Phase I AAI Compliant ESA? The answer to this is a definitive YES, and NO! Take a look at ... Read More »
Small Business Jobs Act and rules for refinancing within the SBA 504 loan program Read More »
In accordance to SBA’s SOP 5010 5 (C), when obtaining a 504 or 7a Loan SBA requires an Environmental Investigation of all commercial Property upon which a security interest such as a mortgage, deed of trust, or leasehold deed of trust is offered as security for a loan or debenture. The type and depth of an Environmental Investigation to be performed varies with the risks of Contamination. Here i... Read More »
You’ve been told you need to have a Phase I Environmental Site Assessment (ESA) and now may be looking for answers to the questions: Why you need one Where you get them How much they cost How long do they take Will it meet the Small Business Administration (SBA) environmental requirements . When ordering a Phase I Environmental Site Assessment (ESA) you want to make sure that: It is AAI (All A... Read More »
The SBA published their latest update their environmental policy in SOP 50 10 5 (C). The SOP revisions take effect on October 1st, 2010 we should all bone up on a few of the new elements of SOP 5010 5 (C) (pages 199 – 206 & 310 – 317). One now technical, but important point, is that the Reliance Letter has had a revision and the Reliance Letter from SOP 5010 5 (B) will no longer be a... Read More »
If you are buying a commercial property, you need to do environmental due diligence. The gold standard for due diligence is the Phase I Environmental Site Assessment. The Phase I ESA is basically a research project into the properties current and past use and how these uses could potentially affect the environment. As a buyer, you want to make sure that you don’t get stuck cleaning up ... Read More »
Entry by: Gary Reynolds So what report do you need for your 504 or 7a loan? This depends on the current and past businesses that occupied your property. SBA has created a NAICS codes list of “Environmentally Sensitive Industries”. The type and depth of an environmental investigation to be performed varies with the risks of contamination. The higher the risk for contamination, the more ... Read More »
