SBA SOP 50 10 8, App7.C — Results of Environmental Investigation.

SOP 50 10 8 App7.C

Effective 2025-06-01 · publisher's stamp for this provision

C. Results of Environmental Investigation. Appendix 7: Requirements Pertaining to Gas Station Loans 1. Property is not Contaminated. If the Environmental Professional concludes that the Property is not Contaminated, the SBA Lender (except on PLP, SBA Express, Export Express, and PCLP loans) must submit the results of the Environmental Investigation to SBA with recommendations and seek SBA’s concurrence. 2. Property is Contaminated. If the Environmental Professional concludes that the Property is Contaminated, the SBA Lender can either: Decline the loan; or Follow the requirements in Section A, Ch. 5, Para. E.5, Property Contamination or Remediation,” provided that at a minimum, in change of ownership situations, the SBA Indemnification Agreement as described in Section A, Chapter 6, E.6.d.i, Indemnification, must always be obtained and signed by the seller. (There may be situations where it is not practical to require the seller to sign the indemnification agreement; for example, the property is being sold from a probate estate or through a trustee in bankruptcy. Waivers may be sought from the SBA Environmental Committee at EnvironmentalAppeals@sba.gov on a case-by-case basis. A mere unwillingness on the part of a seller to execute the indemnification agreement is not a sufficient basis for a waiver. PLP, SBA Express, and Export Express Lenders and PCLP CDCs do not have the authority to grant a waiver and are also required to follow this procedure.) In addition, prudent lending practices may require an SBA Lender to utilize some of the other listed mitigating factors such as requiring additional collateral. D. When Waiver and Release of Right to Indemnification from SBA/SBA Lender Required. If any oil company or other Person (as defined in Appendix 4) has a right to indemnification from subsequent owners of the Property (e.g., SBA/SBA Lender after acquiring Property through foreclosure or other means), then they must execute either the SBA Indemnification Agreement or another document in which they waive all known and unknown rights and release all claims and causes of action whether now or hereafter in existence against SBA and SBA Lender related to Contamination at the Property including the right to indemnification. The document containing the waiver and release must be recorded. Lenders and CDCs, except when submitting requests through PLP, SBA Express and Export Express, must submit all waiver and releases to the SBA center processing the loan for review and approval by SBA counsel, along with a copy of the title report, the document providing for indemnification, and the purchase and sale documents, if any. PCLP CDCs must also submit the waiver and release to the SBA processing center for review and approval prior to a request that SBA fund the loan. Appendix 8: SBA Environmental Indemnification Agreement

Source: SBA SOP 50 10 8, App7.C — Results of Environmental Investigation. · source URL · snapshot 535743ffe062cc34