The SBA’s Standard Operating Procedure (SOP) 50 10 6 will apply to all applications received by SBA on or after that date. Participants must continue to use SOP 50 10 5(K) for SBA 7(a) and 504 applications submitted through September 30, 2020.
Format Update: The SOP document itself has been reorganized to emphasize core 7(a) and 504 Loan Program Requirements and to consolidate guidance based on loan delivery methods and procedural requirements. For 7(a) and 504 loans, SBA has: included in one section all of the core requirements that apply to both the 7(a) and 504 loan programs, insurance requirements and and environmental policies and procedures. A large number of sections within the new SOP have been moved around and/or renamed.
However, key changes relevant to our ESA work include:
- The threshold loan amount to determine whether the Environmental Investigation must begin with an Environmental Questionnaire or include a Records Search with Risk Assessment for loans where there is not a North American Industry Classification System (NAICS) code match to an environmentally sensitive industry has increased from $150,000 to $250,000.
- The mitigating factors are now arranged and identified by Roman numerals rather than letters (e.g. i, ii, iii versus a, b, c, etc.), but are otherwise unchanged. Refer to the AEI updated SBA Scope of Work summary document for the updated list.
- For Special Use Facilities, Child-Occupied Facilities, a construction date of prior to 1978 has been clarified as the threshold for requiring a Lead-Risk Assessment.
- And, any ETS, Phase I ESA or Phase II ESA issued on or after October 1, 2020 will need to include the updated SBA Reliance Letter.
Please contact us if you have any questions or want to learn more.