SBA Transaction Screen Assessment
An SBA Transaction Screen Assessment is part of a loan qualification process. Alternatively, it is also called a Transaction Screen Review. In particular, this is a minimum perquisite for the Small Business Administration or SBA. However, other loan programs may require it as well.
SBA Transaction Screen Assessment v.s. Phase 1 ESA Reports
An SBA Transaction Screen Assessment is not Phase I Environmental Report. Alternatively, there are a few types of Limited Environmental Due Diligence Reports that can help evaluate environmental risk. In particular, the SBA Program prefers the assessment meet the ASTM Standard. This is a guideline for Limited Environmental Reports. Moreover, the Small Business Administration prefers addressing low risk sites with these environmental screening reports, if not a Phase 1 ESA. This is typical for 7(a) and 504 loans. Information about Low Risk versus High Risk properties are mentioned below.
Knowing When to Get the SBA Transaction Screen Assessment
In particular, an SBA Transaction Screen Assessment satisfies the environmental due diligence requirement of lenders. In fact, this is almost always preferred to finance even low risk properties.
- Low risk properties are lots like a residential property adjacent to a car wash, or any property adjacent to higher risk sites. However, higher risk sites may require comprehensive reviews.
- Nevertheless, high risk properties are lots like dry cleaners or gasoline stations. However, these typically require a complete Phase I Environmental Site Assessment Report.
For complete CERCLA liability protection Click here to learn more about Phase I Environmental Site Assessment Reports.
Moreover, to determine whether your property is a low risk or high risk property, feel free to schedule a free consultation today.
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