What is involved in the environmental and appraisal process?
Here’s the overview… • Appraisal reports must be requested by, and prepared for, the CDC. Therefore, an appraisal ordered by and addressed just to a third party lender is not sufficient. The appraisal report used for a 504 project must name Growth Corp, or the SBA, as an addressee. If we aren’t named in the appraisal, SBA will not accept it and a new appraisal will have to be ordered, resulting in delayed processing and a higher cost to the borrower. • Regarding environmental reports, a Phase I is required for a property that is currently used by an environmental sensitive industry, or has historically been used by such an industry. Contact a Loan Officer for the list of NAICS codes which have been deemed environmentally sensitive businesses. • In addition, a Phase I Environmental must also be accompanied by a reliance letter completed by the environmental engineer on their company letterhead. The letter must also be accompanied by proof that the environmental engineer has at least $1
