SBA SOP 50 10 8, App5 — RELIANCE LETTER

SOP 50 10 8 App5

Effective 2025-06-01 · publisher's stamp for this provision

APPENDIX 5: RELIANCE LETTER [Letterhead of Environmental Professional or Environmental Professional’s Firm] RELIANCE LETTER [Date] To: [Insert name and address of SBA Lender here] (“Lender”) and U.S. Small Business Administration (“SBA”) Re: Borrower Name: Project Address (“Property”): Environmental Investigation Report Number(s): Dear Lender and SBA: [Name of Environmental Professional] (“Environmental Professional”) meets the definition of an Environmental Professional as defined by 40 C.F.R. § 312.10(b) and has performed or supervised the performance of the following “Environmental Investigation(s)” (check all that apply): ____A Transaction Screen of the Property dated ______________, 20____, and any addendum(s) thereto, conducted in accordance with ASTM International’s most recent standard (currently ASTM E1528-22); ____A Phase I (or an Updated Phase I) Environmental Site Assessment of the Property dated ______________, 20____, and any addendum(s) thereto, conducted in accordance with ASTM International’s most recent standard (currently ASTM E1527-21). In addition, the Environmental Professional has addressed the performance of the “additional inquiries” set forth at 40 C.F.R. § 312.22; ____A Phase II Environmental Site Assessment of the Property dated ______________, 20____, and any addendum(s) thereto, conducted in accordance with generally-accepted industry Appendix 5: Reliance Letter standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a Release as it impacts the Property. Reliance by SBA and Lender. Environmental Professional (and Environmental Professional’s firm, where applicable) understand(s) that the Property may serve as collateral for an SBA- guaranteed loan, a condition for which is an Environmental Investigation of the Property by an Environmental Professional. Environmental Professional (and Environmental Professional’s firm, where applicable) authorize(s) Lender and SBA to use and rely upon the Environmental Investigation. Further, Environmental Professional (and Environmental Professional’s firm, where applicable) authorize(s) Lender and SBA to release a copy of the Environmental Investigation to the Borrower for information purposes only. This letter is not an update or modification to the Environmental Investigation. Environmental Professional (and Environmental Professional’s firm, where applicable) makes no representation or warranty, express or implied, that the condition of the Property on the date of this letter is the same or similar to the condition of the Property described in the Environmental Investigation. Insurance Coverage. Environmental Professional (and/or Environmental Professional’s firm, where applicable) certifies that they or the firm were covered as of the date of the Environmental Investigation by errors and omissions liability insurance with a minimum coverage of $1,000,000 per claim (or occurrence) and that evidence of this insurance is attached. As to the Lender and SBA, Environmental Professional (and Environmental Professional’s firm, where applicable) specifically waive(s) any dollar amount limitations on liability up to $1,000,000 as well as any time limitations on liability, other than state or Federal statutes of limitation. Waiver of Right to Indemnification. Environmental Professional and Environmental Professional’s firm waive any right to indemnification from the Lender and SBA. Impartiality. Environmental Professional certifies that (1) to the best of their knowledge, Environmental Professional is independent of and not a representative, nor an employee or affiliate of seller, Borrower, operating company, or any person in which seller has an ownership interest; and (2) the Environmental Professional has not been unduly influenced by any person with regard to the preparation of the Environmental Investigation or the contents thereof. Appendix 5: Reliance Letter Acknowledgment. The undersigned acknowledge(s) and agree(s) that intentionally falsifying or concealing any material fact with regard to the subject matter of this letter or the Environmental Investigations may, in addition to other penalties, result in prosecution under applicable laws including 18 U.S.C. § 1001. _______________________________________________ Signature of Environmental Professional Printed Name: (Note: The Environmental Professional must always sign this letter above. If the Environmental Professional is employed or retained by an Environmental Firm, then an authorized representative of the firm must also sign below). _______________________________________________ Signature of representative of firm who is authorized to sign this letter Printed Name & Title: Name of Environmental Firm: Enclosure: Evidence of Insurance Appendix 6: NAICS Codes of Environmentally Sensitive Industries

Source: SBA SOP 50 10 8, App5 — RELIANCE LETTER · source URL · snapshot 535743ffe062cc34