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ERI Has Updated its SBA Flowchart

Charlotte, North Carolina - As a follow-up to our previous article “Environmental Due Diligence – Requirements for SBA Lending,” ERI has updated our laminated SBA Flowchart. Many of you obtained the flowchart several years ago while attending the national/regional RMA, EBA, NAGGL, NADCO, RTM or similar conferences associated with managing risk for commercial lenders.  If you would like a new, complimentary copy of ERI’s laminated SBA process flow chart, we will be glad to send it to you.

In addition to facilitating the determination of the level of environmental due diligence required by the SBA, the flowchart includes an updated list of industries identified by the SBA as Environmentally Sensitive and the following “Helpful Tips:”

  1. The Environmental Professional completing the Transaction Screen Assessment, Phase I ESA or Phase II ESA must provide a Reliance Letter and Certificate demonstrating Professional Liability Insurance coverage.

  2. The Reliance Letter is not to be altered or modified.

  3. The date of the environmental assessment must be within the coverage period noted on the Certificate of Insurance. 

  4. A lead risk assessment for lead-based paint and testing for lead in drinking water are required for properties that will be occupied by childcare centers, nursery schools or residential facilities occupied by children that were constructed prior to 1980. 

  5. A Phase II Subsurface Investigation, in addition to the Phase I ESA, is required for dry cleaners using chlorinated solvents that have been in operation for more than five years. 

  6. In cases where the borrower or property owner or operator will not sign the Environmental Questionnaire, a Transaction Screen Assessment is the minimum level of due diligence required.

  7. For carwash only facilities, a Transaction Screen Assessment is the minimum level of due diligence required.

  8. In situations where the bank has environmental policies and procedures that are different than the SBA due diligence requirements noted above, then the more stringent of the two polices must be followed.


Click here to request your complimentary copy of ERI’s laminated SBA process flowchart!


About Environmental Risk Innovations (ERI)
"Environmental Risk Management Solutions Under One Roof."
ERI is the nation’s largest environmental risk consulting firm, specializing in the management of environmental risk for commercial lenders. ERI’s clients include a broad base of commercial lenders, from regional banks to banks with national footprints. ERI provides third-party review of environmental assessment reports and conducts Records Search with Risk Assessments (RSRAs)/desktop reviews on commercial properties. ERI is not a traditional environmental consulting firm that performs Phase I or Phase II Environmental Site Assessments. As a result, ERI’s recommendations represent a truly independent, third party opinion that conforms to the client bank’s specific risk tolerance. The key to our success is the collaboration of all of ERI’s permanent environmental risk management professionals working together in a single office location in Charlotte, North Carolina.

For more information on ERI's environmental consulting expertise, please contact Karen Nelson at knelson@eRiskInnovations.com or 704.548.9333 or Greg Lathan at glathan@eRiskInnovations.com or 919.657.7500.

© 2017 Environmental Risk Innovations, LLC