Records Search with Risk Assessment – RSRA

What is Records Search with Risk Assessment (RSRA)?

Records Search with Risk Assessment is part of  the U.S. Small Business Administration (SBA) environmental due diligence requirement.  Since about 2007, this quick and inexpensive report has been a viable alternative to the Phase I Environmental Site Assessment (ESA) in many cases.  The report is part of the SBA 504 and SBA 7(a) Loan Programs for commercial real estate (CRE) collateral, but is not confined to only SBA deals.

What exactly does the Records Search with Risk Assessment (RSRA) consist of?

According to the SBA’s environmental policy, the following process is required for environmental risk evaluation:

• All Commercial Real Estate (CRE) collateral requires some form of environmental due diligence.
• If the collateral’s current or past use is listed on the identified “environmentally sensitive industries”, then a Phase I Environmental Site Assessment (ESA) must be performed. The ESA must be approved by SBA prior to the loan being disbursed.  PLP’s and SBA Express Lenders may be able to approve or deny reports independently.
• For non-NAICS listed collateral, loan size determines the next step:
  • If the loan <$150,000, then an Environmental Questionnaire must be completed by the borrower.
  • If the loan is >$150,000, then a Records Search with Risk Assessment (RSRA) must be performed in addition to the Environmental Questionnaire.
    • (Pro Tip: provide the questionnaire or other previous environmental reports to your RSRA provider at the time of ordering)
• If the report indicates “Low Risk”, then send the report for review by SBA underwriting. Again, PLP and Express lenders may be able to do this in-house).
• For  “Elevated Risk” properties, the recommendations of the environmental professional must be followed.  Usually this involves a Phase I ESA.
  • (Pro Tip: Consultants sometimes recommend additional work which represents a real or perceived conflict of interest.  Learn how how our “Clean or Free” guarantee completely eliminates any such conflicts.)

Follow up matters! Any recommendations from the Records Search with Risk Assessment (RSRA) MUST BE FOLLOWED.  There are large risks and costs that can stem from financing contaminated property.  It’s always critical to explain to borrowers that the environmental report is ultimately intended to benefit  THEM.

What exactly does the Records Search with Risk Assessment (RSRA) consist of?

The Records Search with Risk Assessment (RSRA) is like a Phase I ESA, but not as in-depth. It should include at least the following components:

• Government records of known contaminated sites near the Property;
• Historical information back to 1940 or the first developed use, whichever is earlier, and
• Physical setting information
• An opinion by an Environmental Professional. This determines whether the property is “high risk” or “low risk” for contamination.
• A “high risk” opinion means additional investigation is needed. Often this means a Phase I ESA, which is more expensive and time consuming.

Can the Records Search with Risk Assessment be used for Non-SBA Commercial Real Estate Loans?  Sure!  Many non-SBA lenders use the RSRA as their “first-cut” risk-screening tool, along with a questionnaire. If used as part of a comprehensive environmental risk management policy, the Records Search with Risk Assessment has many advantages over simply ordering a “government database report” such as those provided by several big “3 letter” companies:

• The RSRA’s additional historical records make it quite valuable.
• The professional opinion alone can be worth it’s weight in gold.
• This summary-style reports are a fraction of the cost of other forms of environmental assessment.
• Records Search with Risk Assessments are typically much faster than other forms of environmental assessment.
• RSRA reports are highly reliable if performed correctly by a trained and experienced professional.

Why choose Sierra Environmental Consultants as your Records Search with Risk Assessment (RSRA) provider?

• Unique “Clean or Free” guarantee means that you will never ever be upsold to a more expensive report:
  • Your fee is waived if we find an “elevated risk”, and any payment is immediately and cheerfully refunded.
  • Our clients are thus protected from any conflict of interest, since we work a little harder instead of pushing you into an expensive upsell.
  • Even better? You’re free to engage anyone you choose for Phase I, so you’re never “double-dipped” with consulting fees! This is powerful.
• Super easy and quick to order.  Takes about a minute on our secure website.
• We perform Records Search with Risk Assessments in 49 states. We’ve probably done work in your area.
• Multiple pricing and turnaround options – we affordably meet every deadline.
• Fast turnaround – as little as 48 hours.  Some firms take 5 days or more.
• Great pricing – starting at less than $300.00
• Experience counts – We’ve been working for SBA since 1993 and have never had a report rejected.
• Every report is performed by a 25 year+ veteran of the environmental risk industry.

Feel free to give  us a call at (800) 769-7437 if you have any questions about how a Sierra Consultants EZ-Screen (Records Search with Risk Assessment) can make your deal flow faster, less risky and less expensive. Or feel free to go ahead and place an order on our secure ordering portal.