Records Search With Risk Assessment
SBA’s standard operating procedures (SOP 50-10 7.1) require an Environmental Investigation of all commercial property upon which a security interest such as a mortgage, deed of trust, or leasehold deed of trust is offered as security for a loan.” The type of “Environmental Investigation” considered acceptable by SBA depends on several factors, including loan value, current and known prior uses of the property, and other risk factors impacting the environmental risk.
For certain low-risk and/or low-loan value properties, a Records Search with Risk Assessment (RSRA) is considered an acceptable “Environmental Investigation.” An RSRA is a cost effective due diligence process that quickly provides lenders and other stakeholders with information concerning the potential environmental risks associated with a commercial property.
G|E|M’s expanded RSRA offering has become increasingly utilized by our clients for properties that may not require a full scope environmental investigation. By offering the expanded scope RSRA, we have created a product that fulfills our clients’ due diligence needs and adds a layer of assurance by eliminating potential environmental ambiguities.