SBA rules · SOP 50 10 8.1

What is a Records Search with Risk Assessment (RSRA) for an SBA loan?

A Records Search with Risk Assessment (RSRA) is an environmental due diligence report that combines a search of government databases and historical records with an Environmental Professional's assessment determining whether a commercial property is low, elevated, or high risk for contamination.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Components and scope: An RSRA requires a search of government databases identified in 40 CFR § 312.26, a search of historical use sources (such as aerial photos, city directories, or fire insurance maps) back to the first developed use or 1940 (whichever is earlier) for the property and adjoining properties, and a risk determination of "low risk," "elevated risk," or "high risk" by an Environmental Professional.
Report standards and validity: The report must identify the Environmental Professional by name, include all underlying database reports and historical sources, comment on any data failures or gaps, and be dated within one year of issuance of the SBA loan number, but it does not need to be addressed to the SBA or accompanied by a Reliance Letter.
When required: For properties without a NAICS code match to an environmentally sensitive industry (or for units in multi-unit buildings), an RSRA is required at a minimum alongside an Environmental Questionnaire if the loan exceeds $250,000, or whenever an Environmental Questionnaire indicates that further investigation is warranted.
Required next steps: If the RSRA concludes the property is anything other than "low risk," the lender must obtain a Phase I ESA; if it concludes "low risk" and the Environmental Questionnaire reveals no likely contamination, the lender retains both in the loan file.

The source

What the SOP says

““Records Search with Risk Assessment” means and includes (1) a search of the government databases identified in 40 CFR § 312.26 for an AAI compliant Phase I as well as a search of historical use sources (for example, aerial photography, city directories, reverse directories and/or fire insurance maps) pertaining to the Property and Adjoining Properties; and (2) a risk assessment by an Environmental Professional based on the results of the records search as to whether the Property is either “low risk” or “elevated risk” or “high risk” for Contamination.

SOP 50 10 8.1, Appendix 4: Definitions – Environmental > Note (lines 4472-4476)✓ Verified

“While the choice of standard historical sources to be reviewed on any particular site is at the discretion of the Environmental Professional in their professional judgment, the historical sources should identify property uses back to the property’s first developed use, or back to 1940, whichever is earlier. The Environmental Professional need only review as many of the standard historical sources as are necessary, reasonably ascertainable, and likely to be useful. The Environmental Professional should comment upon any data failure or data gap encountered. The report must identify by name the Environmental Professional who performed the risk assessment and must include all of the database reports and historical sources relied upon. (Note that this report need not be addressed to the SBA and need not be accompanied by a Reliance Letter.) A Records Search with Risk Assessment must be dated within one year of the date of issuance of the SBA loan number.

SOP 50 10 8.1, Appendix 4: Definitions – Environmental > Note (lines 4472-4476)✓ Verified

“If the loan amount is more than $250,000, the Environmental Investigation must, at a minimum, begin with an Environmental Questionnaire and Records Search with Risk Assessment.

SOP 50 10 8.1, Chapter 5: Other Core Requirements > Environmental Investigation Steps (lines 1500-1508)✓ Verified

“If at any time an Environmental Questionnaire reveals that further investigation is warranted, the SBA Lender must obtain, at a minimum, a Records Search with Risk Assessment.

SOP 50 10 8.1, Chapter 5: Other Core Requirements > Environmental Investigation Steps (lines 1500-1508)✓ Verified

“If the Records Search with Risk Assessment concludes that the Property is anything other than “low risk” for Contamination, the SBA Lender must obtain a Phase I ESA.

SOP 50 10 8.1, Chapter 5: Other Core Requirements > Environmental Questionnaire and Records Search with Risk Assessment Results: (lines 1509-1511)✓ Verified

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