For SBA lenders
Short answer
An Environmental Questionnaire (SBA Form 1081) is required for all loans involving real estate where the property or business operations could pose an environmental risk, including all commercial real estate transactions.
The SBA requires an environmental review for loans involving real estate to assess potential contamination and associated liabilities. Form 1081 is the initial screening tool to determine the likelihood of a Recognized Environmental Condition (REC) and whether a Phase I Environmental Site Assessment (ESA) is necessary.
A borrower applies for a 7(a) loan to purchase a former auto repair shop. Due to the historical use of the property, the lender requires the completion of SBA Form 1081. Based on the responses, a Phase I ESA might be deemed necessary.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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