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SBA Loan Requirements

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 is a simple “Steps of Environmental Investigation” flowchart describing what level of report would be required based upon the property site’s NAICS (North American Industry Classification System) Code .

For more information regarding SBA Environmental Due Diligence requirements, or the complete Standard Operating Procedures created by the U.S. Small Business Administration visit

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Affiliations: Member, National Association of Government Guaranteed Lenders ( NAGGL) Member, National Association of Development Companies (NADCO) Member, Northern Texas Association of Government Guaranteed Lenders (NTAGGL) Member, Enviornmental Bankers Association (EBA) Mr. Reynolds has 29 years of sales and marketing experience. Mr. Reynolds is a marketing expert by career and has now become an SBA enviornmental expert by design. He has focused his enviornmental due diligence career working with U.S. Small Business Administration lenders. Mr. Reynolds is regularly called on to speak at a variety of conferences on the subject of Small Business Administration (SBA) enviornmental due diligence requirements. He has had articles published in national industry publications and continues to search for ways to provide valuable and timely information on enviornmental due diligence to the various industries Partner Engineering and Science serves.

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1 Comment

  1. January 23, 2011, 9:02 pm   / 

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