What SBA rules apply to gas station and dry cleaner properties?

Dry cleaners need a Phase I followed by a Phase II, and gas stations must begin with a Phase I. SOP 50 10 8.1, Section A, Ch. 5, Para. E, and Appendix 7 set the rules.

Dry cleaners

SBA requires a Phase I followed by a Phase II for any property with on-site dry cleaning, current or historic. The rule covers sites that use or likely used chlorinated or petroleum-based solvents. The investigation must address soil, groundwater and soil vapor.

An independent Environmental Professional must conduct the Phase II. That person needs a current Professional Engineer's or Professional Geologist's license and the equivalent of 3 years of full-time relevant experience. Any deviation goes to SBA as an exception request.

Gas stations

Appendix 7 applies to loans secured by real property or gas station equipment such as tanks, pumps and lines. It does not apply if you only lease and neither is collateralcollateralProperty a lender can take and sell if a loan is not repaid. .

• The investigation begins with a Phase I by an independent Environmental Professional.
• It covers all relevant records for the property and adjoining properties.
• It determines compliance with tank and equipment testing rules. The loan cannot disburse until compliance is achieved.
• Defective equipment must be repaired or replaced before disbursement.
• Any Phase II must meet the license standard above.

If a contaminated gas station is being sold

In a change of ownership, the seller must at a minimum sign the SBA Indemnification Agreement. A seller's unwillingness alone is not grounds for a waiver (Appendix 7, Para. C).