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SBA Crash Course: The SBA SOP and Why You Should Care

The SBA's SOP for environmental due diligence has been adopted by many lenders... a formal environmental policy and is a useful program to screen for environmental liability. The Small Business Administration’s SOP for 7a & 504 loans (currently SOP 50 10 5 (E)) has become a very popular policy for environmental due diligence that many banks have adopted as their own bank policy. Instead of trying to reinvent the wheel, or (for SBA lenders) having two policies in place – one for the bank and one for 7a & 504 loans – they have simply instituted the SBA Environmental Policy for all loans. Bank regulators have stated that they are looking to see that lending institutions have a policy in place and that all loans adhere to that policy, and the SBA Environmental Policy is a great guideline that may be useful to any lender looking to create a formal environmental policy.

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