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SBA Environmental Policy in SOP 50 57 – Loan Liquidation

Entry by JoeDerhake



The SBA recently updated their SOP 50 57 Loan Liquidation and the updated policy takes effect March 1, 2013.    All good environmental professionals must keep up on little changes in our practice of Phase I Environmental Site Assessments whether the changes are driven by ASTM, SBA, or another lender standard.    The EBA Technical and Risk Management Committees did a call last week on this subject – thank you to Holly Neber for an excellent presentation.   


My partner, Gary Reynolds, also wrote a blog on this subject for the Coleman Report (probably the best publication for all things to do with SBA real estate lending).   Gary drew attention to the changes to how we will evaluate and value environmental liabilities in non-performing loans.   Putting a number on an environmental problem is a always a challenge as often the precise extent of the release is not known and the regulator has not fully defined what needs to be done to achieve closure.  

Gary says: “SOP 50 57 steers the lender through reasoning to insure that the lender and the SBA are not stepping into a role of liability for contamination or the costs of remediation as well as making sure the lender isn’t selling off a property for substantially less than it’s appraised value based on unsubstantiated allegations of contamination.”

Click here, for Gary Reynolds’s full article on SOP 50 57 Loan Liquidation – What SBA Lenders and CDCs Should Know.


SBA SOP 50 57, SBA Loan Liquidation, SBA Environmental Policy, 50 57 Environmental