The Small Business Administration’s ecology action (SOP 50 10 5) has accurate requirements apropos ecology due activity on “high risk” properties, which includes Phase I Ecology Armpit Assessments and sometimes added investigation.
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To epitomize my antecedent blogs about the SBA’s accommodation cast on what affectionate of due activity is done, about all “high risk” backdrop crave a Phase I Ecology Armpit Appraisal (according to SBA’s NAICS cipher account of ecology acute industry). “Low risk” backdrop can alpha with a lower akin of due diligence, usually either an Ecology Questionnaire or a Annal Search with Accident Appraisal (RSRA) report. There is one barring to the aerial accident acreage rule, which is for “car ablution only” facilities, breadth there are no added environmentally acute operations such as auto application or fueling – these accessories can activate due activity with the Transaction Screen Report. Otherwise, if you accept a acreage blazon that is listed on the NAICS codes, again SBA requires that the ecology analysis activate with an AAI Phase I Ecology Armpit Assessment.
The SBA Phase I ESA
The ambit of assignment for an SBA Phase I Ecology Armpit Appraisal is the aforementioned as the AAI / ASTM E1527 ambit of work, but there are a few nuances with the address discussed below. The capital apparatus of the Phase I ESA are a armpit and breadth reconnaissance, analysis of authoritative and actual records, and interviews with key armpit personnel.
You should plan on about a three anniversary about-face time. The added time you can accord your ecology adviser the better, because the Phase I ESA address will accept beneath abstracts gaps (such as a book analysis that couldn’t be done due to a abbreviate turnaround time). This abstracts can sometimes accomplish the aberration amid accepting to acclaim added assignment or not. For example, sometimes we are able to clue bottomward a antecedent Phase Phase II Ecology Armpit Appraisal (soil and/or groundwater testing) advertence that the armpit was not impacted by aloft gas base operations.
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SBA Requirements for Dry Cleaners and Gas Stations
For these two able-bodied accepted aerial accident facilities, the SBA has added requirements aloft the Phase I ESA.
Dry cleaners in operation for added than 5 years crave a Phase I Ecology Armpit Appraisal and a Phase II Ecology Armpit Assessment. This is due to the chancy attributes of the best accepted dry charwoman actinic accepted as Perc or PCE (perchloroethylene), as able-bodied as the aerial allotment of dry cleaner accessories that accept had a absolution to the environment.
Gas stations (and added bartering fueling facilities) crave a Phase I ESA and a acquiescence analysis to actuate that underground accumulator tanks and associated accessories are in acquiescence with accompaniment requirements for binding testing. If the ecology able determines that added analysis is acceptable (for archetype based on the age of the adeptness or a bootless band binding test), again a Phase II ESA will be necessary.
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SBA Requirements for Child Affliction Facilities
Child affliction centers, nursery schools and residential affliction accessories active by accouchement don’t crave at Phase I ESA (unless some added aerial accident use is articular at the property), but if they were complete afore 1980 they charge abide a advance accident appraisal for acrylic and testing for advance in bubbler water. This is because accouchement are of advance the best acute to advance exposure. Advance testing is not appropriate by the SBA for added backdrop after acute occupants.
What if your SBA Phase I ESA has a REC?
If your Phase I Ecology Armpit Appraisal comes aback “clean” with no Recognized Ecology Altitude and “No Added Action” recommended, again you would abide it to the SBA. If the Phase I ESA does appear aback with RECs again SBA requires the recommendations of the Ecology Able be met, which is usually a Phase II Ecology Armpit Assessment. The Phase II ESA complex targeted soil, soil-gas or groundwater sampling in the areas of affair articular in the Phase I ESA to affirm whether a absolution has occurred. Expect about a 4 anniversary turnaround time for the Phase II ESA Report.
The lender can address the SBA to accomplish an barring to the EP’s recommendations if there is an altercation for accomplishing so, but this is appealing rare.
Recognized Ecology Altitude are authentic as the attendance or acceptable attendance of any chancy substances or petroleum articles on a acreage beneath altitude that announce an absolute release, a accomplished release, or a actual blackmail of a absolution of any chancy substances or petroleum articles into structures on the acreage or into the ground, arena water, or apparent baptize of the property.
What about non-scope items in an SBA Phase I ESA?
It is important to agenda that SBA additionally requires that any non-scope or non-REC items appropriate by your EP be completed as able-bodied – for example, a advocacy to complete an asbestos survey. These are accepted as “housekeeping” accomplishments and lenders accept altered accident tolerances apropos housekeeping items – some appetite recommendations others don’t. You may appetite to accept them taken affliction of so they don’t accept to be in the address – or apathetic bottomward the process. A acceptable ecology adviser that understands SBA requirements should acquaint with you about these items above-mentioned to the address actuality finalized.
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SBA Assurance Letter
Lastly but importantly, every SBA Phase I ESA charge accommodate a assurance letter, which grants the SBA adeptness to await on the report. Sounds simple right? Well, the Assurance Letter is generally a antecedent of alarm to SBA lenders, so I’ll explain this a bit added in my abutting SBA Crash Advance blog.
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