Search
 

SBA Crash Course: Phase I Environmental Site Assessments and Beyond

The SBA has particular requirements for environmental due diligence on "high risk" properties, which includes a Phase I ESA and sometimes additional investigation.

By Gary Reynolds | Updated on March 12, 2013

The Small Business Administration’s environmental policy (SOP 50 10 5) has particular requirements regarding environmental due diligence on “high risk” properties, which includes Phase I Environmental Site Assessments and sometimes additional investigation.   

To recap my previous blogs about the SBA’s decision matrix on what kind of due diligence is done, generally all “high risk” properties require a Phase I Environmental Site Assessment (according to SBA’s NAICS code list of environmental sensitive industry).  “Low risk” properties can start with a lower level of due diligence, usually either an Environmental Questionnaire or a Records Search with Risk Assessment (RSRA) report.  There is one exception to the high risk property rule, which is for “car wash only” facilities, where there are no other environmentally sensitive operations such as auto servicing or fueling – these facilities can begin due diligence with the Transaction Screen Report. Otherwise, if you have a property type that is listed on the NAICS codes, then SBA requires that the environmental investigation begin with an AAI Phase I Environmental Site Assessment.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.