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SBA Phase II Environmental Site Assessment

Phase II investigations for SBA lenders done right, done economically, and done on time.



The SBA SOP 50 10 5(J) for the SBA 7(a) Loan Program & the SBA 504 Loan Program and the SBA SOP 50 57 for loan liquidations require that a Phase II Environmental Site Assessment be performed when recommended by the Environmental Professional in a Phase I ESA report. A Phase II Environmental Site Assessment is a subsurface investigation used to determine the presence or absence of contamination at a property.

The Phase II ESA begins after the identification of possible or actual contamination during a Phase I ESA. The Phase I ESA identifies the potential areas of concern and potential chemicals of concern, which are used as the basis of the Phase II subsurface investigation. The Phase II ESA utilizes site exploration, sampling in areas of concern, and laboratory analysis for chemicals of concern.

SBA lenders should note: The Phase II Environmental Site Assessment typically consists of a targeted scope designed to give a “yes” or “no” answer regarding the presence or absence of contamination. Because of this limited scope, the Phase II ESA is not typically designed to answer the questions:

  • How big is it?
  • How much will it cost to clean up?

The answers to these questions are found through Site Characterization process which subsequently allows a Remedial Cost Estimate to be calculated.