If you’ve made the decision to purchase a piece of land to use as a commercial business, your banker may require you to get a Phase I ESA before signing off on your loan. Why is that, you ask? This is a fairly common occurrence, but it’s one that is often confusing for people. The good news is that at Nelson Enviro, we’re here to shed some light on the situation.
In today’s post, we’ll be sharing the reasons that your banker might have you complete a Phase I ESA before they will approve your loan. If that’s the situation you’re in, keep reading to learn more and don’t hesitate to contact our team today with any questions that you may have.
What Is a Phase I Environmental Inspection?
The first thing you should know is exactly what a Phase I ESA is. Essentially, when you reach out to Nelson Enviro for environmental consulting, we’ll dig deep into the backstory of the land you’re considering purchasing, getting our hands dirty so you don’t have to. We take advantage of a number of different databases to discover the secrets that your land may be hiding.
For example, if you’d like to open a shopping center on a piece of land that used to house a gas station, it’s something that could potentially pose a health risk. Needless to say, this isn’t something you want to deal with.
Here’s Why the Banks Care
Of course, if a bank is going to be lending you money, they want to ensure that you’ll be able to pay it back. In other words, if there is a potential environmental issue with your land in the future, it could impact your revenue which could in turn affect your ability to pay your loan.
Because the banks are hoping to decrease the risks involved with giving out a loan, if there’s a chance that your land might be an issue, your banker may require you to have a Phase I Environmental Site Assessment completed just to be certain. After all, if an issue is found after the fact, the cost of clean up and remediation can often be much larger than the amount of the loan, causing a cascading list of problems that are incredibly difficult for everyone involved to deal with.
Get Your Analysis Today
At Nelson Enviro, we’re known for going above and beyond for each and every one of our clients. Working on a specific timeline? Let us know! Have a particular request? Chat with us! Don’t require a full Phase I ESA, but still want to know what we can uncover? Ask us about a Desktop Review!
At the end of the day, no matter who you are or what your situation looks like, if you’d like to know the secrets that your land is hiding, put your trust in our experience; we won’t let you down. Contact Nelson Enviro today to get the process started. We look forward to hearing from you!