Caltha LLP Project Summary
Project: Preparation of SBA Documentation For Site With Active Contamination Cleanup
Client: Regional Bank-SBA Lender
Key Elements: Review of remediation plans, Estimation of remediation costs, SBA environmental review requirements
Overview: The US Small Business Administration (SBA) requires different levels of environmental investigation to participate in SBA lending programs. These investigations range from simple environmental questionnaires, Record Search With Risk Assessment (RSRA) to full Phase 1 Environmental Site Assessments. The highest level of documentation required by SBA is for those properties which have active remediation; SBA wants to be assured that the current cleanup projects are largely complete and that the remaining costs for remediation are low compared to the property value.
For this project, the SBA lender retained Caltha to evaluate a property for which they planned to secure a SBA-guaranteed loan. The site had been used as a former dry cleaner chemical bulk storage facility. That use had resulted in solvent contamination in both soil and groundwater. Remediation of the site had been proceeding for the prior ten years and much of the site had already been cleaned up to State standards. Caltha prepared documentation of the site history, past and current remediation activities and anticipated future clean up needed. Caltha staff then estimated the costs to complete work and to close the remediation site. All documentation was presented to SBA by the bank and was used as a basis to secure SBA funding for the loan.
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