SBA SOP 50 10 8, App7 — REQUIREMENTS PERTAINING TO GAS STATION LOANS

SOP 50 10 8 App7

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

APPENDIX 7: REQUIREMENTS PERTAINING TO GAS STATION LOANS Environmental Investigation Requirements for Gas Station Loans NOTE: SBA Lenders are reminded that documentation associated with gas station loans can be voluminous and complex. The Environmental Investigation requirements set forth below apply to all loans secured by a lien or security interest on real property (a fee simple or leasehold mortgage, deed of trust, etc.) or personal property (gas station fixtures or equipment such as tanks, pumps, lines, etc.) currently used to operate a gas station or commercial fueling facility ("Gas Station Loans"). These requirements would not apply when the applicant operates a business, such as a convenience store associated with a gas station, in which the applicant only leases the real or personal property and neither the real nor personal property is used as collateral for the loan. Nor do these requirements apply to situations where the only collateral for the loan is something other than gas station equipment (for example, food inventory, shelving, etc.). A. Environmental Site Assessment. The Environmental Investigation for all Gas Station Loans (including those secured by gas station equipment only) must: 1. Begin with a Phase I ESA with the additional requirement that it be conducted by an independent Environmental Professional; 2. Include an analysis of all relevant environmental records concerning the Property and Adjoining Properties, including any records provided by the seller if the loan is to purchase the Property; 3. Include documentation supporting the Environmental Professional’s determination of compliance with all regulatory requirements, if any, pertaining to tank and equipment testing (see Paragraph B. below) (even if the loan is secured by real property); 4. Include the results of any further investigation, which may include a Phase II, recommended by the Environmental Professional (Any Phase II performed in connection with a Gas Station Loan must be conducted by an independent Environmental Professional who holds a current Professional Engineer’s or Professional Geologist’s license and has the equivalent of 3 years of full time relevant experience.); and 5. If the Property is Contaminated, include a detailed description of and cost estimate for the recommended Remediation. B. The Environmental Investigation performed by the Environmental Professional must include a determination whether the gas station is in compliance with all regulatory requirements, if any, pertaining to tank and equipment testing. A loan may not be disbursed until full compliance is achieved. Further, any leaking or otherwise defective equipment, systems, containment devices, etc., must be replaced or repaired prior to disbursement.

Source: SBA SOP 50 10 8, App7 — REQUIREMENTS PERTAINING TO GAS STATION LOANS · source URL · snapshot 535743ffe062cc34