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

**Short answer:** Any property with on-site dry cleaning needs a Phase I followed by a Phase II. A gas station loan must begin with a Phase I by an independent professional and confirm tank testing compliance. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. E; App. 7.

Canonical page: https://www.sbaexpress.loans/answers/sba-gas-station-dry-cleaner-environmental-rules/
Last checked: 2026-11-08

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 collateral.

- 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).

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 5, Para. E, Special Use Facilities (about p. 113)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 7 (pp. 323-324)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)