Five Tips to Avoiding Delays in your SBA Loans
by Stephen Reynolds
September 16, 2021
Keeping your SBA deals moving is important to both you and your customers. The last thing you need is for your environmental due diligence to get kicked back because you didn’t “dot that “i” or cross that T.” In all seriousness, it is a bit more complicated than that, and loans do get delayed when a detail gets overlooked. And we all know there are plenty of details to underwriting an SBA loan.
We’ve put together a few tips to help you avoid screen out and delays and keep your SBA originations and underwriting moving along.
- Always state the past and current use of the property and the adjoining properties in the Environmental Questionnaire (EQ).
- The EQ must be signed by the owner or operator of the site and the CDC/Lender.
- If the owner is unable or unwilling to sign the EQ and the property is not in an environmentally sensitive industry, then a Transaction Screen Analysis is the minimum requirement for submission.
- As of April 1, 2021, the SBA requires the statement (below) in your environmental questionnaire:
“The undersigned owner(s) and/or operator(s) acknowledge(s) and agree(s) that intentionally falsifying or concealing any material fact with regard to the subject matter of this Environmental Questionnaire may, in addition to other penalties, result in prosecution under applicable law including 18 U.S.C. section 1001.”
- If a property is a daycare center, childcare center, nursery school or a residential care facility occupied by children, state the construction date of the building. If the date of construction is prior to 1980, a lead risk assessment (for lead based paint) and testing for lead in drinking water is required.
The last tip, concerning childcare centers has not fallen on many radars as daycare center activity has slowed with the pandemic. Be mindful as things return to normal.
Also, be sure you’re using the latest Environmental Questionnaire. You can download the latest here on the CREtelligent SBA Resource page.