Environmental Assessments, Phase 1 and 2 under the new SBA lending rules

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 4, 2009 --

The Small Business Administration released new rules in August of 2008, with updates in March or 2009 that require more extensive environmental due diligence for certain types of properties, including: gas stations, dry cleaners and industrial properties. These types of properties typically will require a Phase II Environmental Site Assessment if the Phase 1 Environmental report conducted by an Environmental Professional recommends it. Generally, if these types of properties have not had recent Phase 2 Environmental reports, a Phase One environmental report should recommend a Phase Two study.

With so many new SBA loans being conducted, lenders should be aware of these issues and the time required to complete them properly. Failure to conduct the appropriate due diligence that adheres to the SBA rules could cause SBA loans to be underwritten with undue risk to the lender and the American people, who ultimately have to pay for these loans if they default.

Finding a competent environmental consultant to conduct these reports accurately is relatively easy and should be considered prior to applying for a SBA loan for these types of properties.

More information can be found online at http://www.aaienvcorp.com/phase1environmental.html

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