SBA Environmental Procedures and Policies - Changes Effective Oct 1

The U.S. Small Business Administration has announced some upcoming changes to its environmental policies and procedures to its Lender and Development Company Loan Programs SOP-50-10-5(B), , effective October 1, 2009.

For more information, go to:

SBA Amendments to Phase 1 Environmental Assessment, Environmental Questionaire and Records Search Requirements.

Some of the key changes made to the environmental policies for lenders and Certified Development Companies to participate in SBA lending programs include:

1. Clarification that, in the case of gas stations (NAICS code 447), the Environmental Investigation must begin with a Phase I;
2. On-site dry cleaners in operation for more than five years must undergo a Phase II Environmental Site Assessment, in addition to a Phase I (which would be required due to the NAICS code match);
3. For special use facilities (daycare or child care centers, nursery schools), revision to the date of construction for conducting a lead risk assessment for lead-based paint from 1978 to 1980;
4. Revised definition of "environmental questionnaire" to reflect that if the current owner or operator of the property will not sign the questionnaire, it cannot be used, and the lender must then, at a minimum, obtain a Transaction Screen;
5. Acknowledgment that the SBA will recognize a Phase II ESA conducted "in accordance with generally-accepted industry standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a release;"
6. Establishing a shelf life of one year for the Records Search with Risk Assessment; and
7. Very minor clarifications to the list of NAICS codes that trigger Phase I ESA requirement.

The new SOP also reflects any policy and procedural notices issued between January 1, 2009 and June 30, 2009.

Caltha LLP provides SBA-qualified professionals to conduct SBA Phase I and Phase II Environmental Site Assessments on industrial and commercial properties. For further information, go to SBA Phase I ESA and Risk Assessment in Wisconsin

For further information, contact Caltha LLP at:
Email: info@calthacompany.com
Phone: (763) 208-6430
Caltha Website