SBA SOP Changes – Effective January 1, 2018
Effective January 1, 2018, the Small Business Administration (SBA) updated the Standard Operating Procedures SOP 50 10 5 (J) for Lender and Development Loan Programs. In addition to changes incorporated in ERI’s Records Search with Risk Assessment (RSRA) and desktop...
Underground Storage Tanks: Regulations, Requirements and Expectations
UST Regulatory History In 1984, Congress directed the United States Environmental Protection Agency (EPA) to develop regulations for Underground Storage Tanks (UST) containing petroleum. The EPA issued federal regulations, effective December 1988, that delegated UST...
RSRAs and TSAs – The Similarities and Differences
Depending on the potential risk profile of a commercial property, Environmental Risk Managers realize that a Phase I Environmental Assessment (ESA) may not be necessary for all commercial properties targeted for commercial loans. In these cases, environmental risk...
Dry Cleaning Alternatives – How “Green” is Green?
The use of chemical agents for cleaning clothes dates back to the 1690s, when turpentine was used to remove oil and grease spots from clothing. In the 1800s, mechanical cleaning machines were introduced that used turpentine, camphor oil, kerosene naphtha or white...
Considering Lending on a Dry Cleaner?
Perchloroethylene (PCE), a chlorinated solvent, has been used in the dry-cleaning industry since the 1930s. A small amount of this “likely human carcinogen” released to the subsurface can impact soil and groundwater, and migration of vapors associated with a release...
SBA Gas Station Loans
In order to identify and mitigate the environmental risks associated with gas station loans, the U.S. Small Business Administration (SBA) has developed guidelines that loan applicants must follow during the application process. The SBA requires that the Environmental...
Activity and Use Limitations
In many instances, exposure to soil, groundwater contamination and vapor on a commercial property can be limited by federal and state regulatory bodies through “Activity and Use Limitations” or AULs. Information regarding AULs is typically contained in the...
Requirements for SBA Lending
The U.S. Small Business Administration (SBA) Standard Operating Procedures, SOP 50 10 5(H), requires environmental assessments on all commercial properties offered as security for a loan. The level of environmental due diligence required is dependent on the...
Asbestos in Commercial Buildings: Abate or Manage in Place?
Health hazards associated with airborne asbestos exposure were originally known to impact workers involved in building trades, the maritime industry, mining, and the manufacturing/processing of products which contained asbestos. Three of the major adverse health...
No Further Action or Closure Letters: “Perceived Liability Protection?”
The majority of commercial lenders place significant emphasis on the importance of closure or “No Further Action” letters obtained from regulatory authorities. Their focus is on the impact such documentation may have in reducing future liability associated...