Ensuring compliance with the SBA’s environmental rules is often one of the more complex (and confusing) SBA loan origination due diligence requirements. Earlier this year, the SBA issued Procedural Notice 5000-866054 Update to SOP 50 10 7.1 Section A, Chapter 5, Paragraph E, Environmental Policies and Procedures with an effective date of March 20, 2025. Click here to access on the SBA website. More recently, the SBA issued Procedural Notice 5000-869245 Revisions to SOP 50 56 related to Environmental Reviews and Permanent ALP Express Authority with an effective date of September 15, 2025. Click here to access on the SBA website.
When it comes to highly technical issues related to environmental investigations and due diligence, it is recommended that lenders engage the services of experienced environmental experts to ensure effective and efficient management of the environmental review process, including compliance with the applicable SBA requirements. A nationally recognized SBA environmental specialist, Outsourced Risk Management Solutions (“ORMS”), recently published “The SBA’s Latest SOP Offers a Clear Roadmap for Environmental Risk Management Success”, click here to read more or contact Derek Ezovski, President, at dezovski@orms.com.
Stay tuned for part two of this environmental series regarding environmental best practices prior to foreclosures and liquidations.
If your lending institution has questions about the SBA Environmental regulations, or any other SBA lending matters, please contact us at SBAQuestions@JellumLaw.com.