Environmental Considerations for Real Estate

·         For loans less than $150,000, if the lender’s environmental questionnaire reveals the need for additional investigation, a Desktop Environmental Review must be conducted by an Environmental Professional (EP), which replaces the former TSA requirement of the former version of the SOP.

·         Gasoline station Phase I Environmental Site Assessments can now be conducted by EP’s, replacing the former requirement of Professional Engineer or Professional Geologist.

·         The NAICS code for drycleaners applies to the entire history of the property, rather than just the current use as specified in the former version.

·         Phase II’s on drycleaners must be conducted by a PE/PG, which becomes consistent with the policy on gasoline station Phase II’s.

August Mack's due diligence team has extensive experience in conducting environmental due diligence assessments for SBA guaranteed loans, and an in-depth understanding of the requirements of the revised SOP. Our experts can help ensure that reports are prepared accurately and in a manner that will pass more easily through the SBA review process.