The SBA’s Centralized 504 Processing Office has provided us with a list of the top reasons that appraisal and environmental reports are screened out. Why is that important to you? It delays the processing and subsequent approval of those reports and could hold up your closing.
Remember to send us appraisals and environmental reports as soon as you receive them so we can facilitate the approval process with SBA.
The Top 8 Reasons for Appraisal Screen Outs by SBA:
1. Appraisal is more than one year old at the time of submission
2. Address on the appraisal does not exactly match the address on the Authorization
3. The appraiser designates the property as "special use" but the Authorization does not
4. The appraisal includes an excess parcel of land that will not be used by the business
5. The appraisal indicates the purchase price of the property is different that is indicated in the Authorization
6. The project is appraised "as is" but not "as complete" and there are significant improvements in the project
7. The appraisal indicates there is a seller credit that has not been deducted from the purchase price in the Authorization
8. The appraisal indicates the purchase is not an "arms length" transaction
The Top 5 Reasons for Environmental Screen Outs by SBA
1. Environmental report is not properly addressed to SBA and CDC
2. Environmental report is more than 6 months old at the time of submission
3. Address on the environmental report does not exactly match the address on the Authorization
4. The owner of the property does not sign and date the environmental questionnaire
5. The environmental questionnaire is not fully completed
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