Yesterday, October 24, 2023, the United States Small Business Administration (US SBA) released an updated version of its newest Standard Operating Procedures (SOP) under Lender and Development Company Loan Programs. The new SOP, Version 50 10 7.1, will go into effect on November 15, 2023. All lenders, certified development companies (CDCs), SBA employees, and applicants/borrowers of 504 and 7(a) loans will be subject to the changes therein at that time.
The environmental policies of the SOP are contained within Chapter 5, Section E of the new SOP. The primary highlighted change from the previous version (50 10 7) is that in subsection d, paragraph vii, the word “groundwater” has been removed regarding contamination originating from another site. In other words, SBA henceforth will require a discussion of mitigating factors related to known contamination resulting from neighboring properties regardless of media type. That section now reads as follows:
SCS Engineers continues to monitor this and other SOPs/guidelines that dictate proper performance of due diligence for specific lending programs. Please contact Rachel McShane for more information.