Environmental Desktop Screening Reviews
- These risk analysis reports are used by some lenders and buyers to confirm a perceived low-risk of environmental impairment for certain types of properties. If the need for a Phase 1 Environmental Site Assessment is determined during the Desktop Review, the data obtained can be used for a Phase 1 upgrade.
Environmental Database Review (EDR) / Environmental Screening
- Environmental Database Review (EDR): The scope of work includes obtaining and analyzing an ASTM Standard Practice E1527-21 regulatory database report for the subject site. The information obtained from the database report is reviewed by an environmental professional and will be summarized in a letter stating our findings and opinion of potential environmental concern relative to subject site.
- Environmental Screening: The scope of work typically includes an EDR and adds the review of historical sources such as aerial photographs, historical maps, and city directories for the subject site. This report can be customized to included owner, occupant, and regulatory interviews, file reviews, prior report reviews, or other information. The information obtained will be reviewed by an environmental professional and will be summarized in a letter stating our findings and opinion of potential environmental concern relative to subject site.
Small Business Administration (SBA) SOP 50 10 6 Records Search With Risk Assessment (RSRA)
- The SBA accepts a Records Search with Risk Assessment (RSRA) in lieu of a Phase I Environmental Site Assessment (Phase I ESA) for low risk properties. Low risk properties is defined as those with property uses that do not match one of the North American Industry Classification System (NAICS) codes of environmentally sensitive industries (higher risk properties.
- The RSRA is a limited environmental due diligence tool intended to evaluate the level of environmental risk associated with a property at a reduced cost and timeline. The report concludes that the property has either a “high or elevated-risk” or “low risk” for contamination. If the property is not determined “low risk”, an additional environmental investigation may be required.
- The Records Search with Risk Assessment includes: 1) a lender-completed environmental questionnaire based upon an on-site visit, 2) a database search of federal, state and local regulatory records, 3) limited historical record review of the subject adjacent properties, and 4) desktop review of this information by an environmental professional who will determine the level of risk.
- Lender responsibilities when ordering an RSRA: It is the responsibility of the lender to perform a site visit and complete an environmental questionnaire with the property owner/occupant. The SBA SOP states: “Environmental Questionnaire means the questionnaire used by a Lender to determine the likelihood that Contamination may be present at Property offered to secure an SBA guaranteed loan. Environmental Questionnaires must be completed or reviewed by a Lender that has made at least one site visit to the Property and a good faith effort to conduct an interview with the current owner or operator of the Property. An Environmental Professional may, but is not required to, assist with the responses to the questionnaire. An Environmental Questionnaire may be considered if it was completed up to one year prior to submission. The current owner or operator of the Property must sign the Environmental Questionnaire. If the current owner or operator of the Property will not sign the Environmental Questionnaire it cannot be used and lender must then, at a minimum, obtain a Transaction Screen.”