Records Search with Risk Assessment – RSRA
What is a 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 SBA deals.
Where the RSRA sits in SBA's process
According to SBA's environmental policy (SOP 50 10 8.1, effective October 1, 2026), 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 on the list of "environmentally sensitive industries", a Phase I Environmental Site Assessment (ESA) must be performed. The ESA must be approved by SBA prior to the loan being disbursed; PLP and SBA Express lenders may be able to approve or deny reports independently.
- For collateral not on the NAICS list, loan size determines the next step. If the loan is under $150,000, an Environmental Questionnaire must be completed by the borrower. If the loan is over $150,000, a Records Search with Risk Assessment (RSRA) must be performed in addition to the Environmental Questionnaire. (Tip: provide the questionnaire, and any previous environmental reports, to your RSRA provider at the time of ordering.)
- If the report indicates "Low Risk", send the report for review by SBA underwriting (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. (Tip: consultants sometimes recommend additional work which represents a real or perceived conflict of interest. Our "Clean or Free" guarantee eliminates any such conflict.)
Follow-up matters. Any recommendations from the RSRA must be followed. There are large risks and costs that can stem from financing contaminated property. It is always worth explaining to borrowers that the environmental report is ultimately intended to benefit them.
What the RSRA consists of
The 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;
- Physical setting information;
- An opinion by an Environmental Professional, which determines whether the property is "low risk" or "elevated risk" for contamination.
An "elevated risk" opinion means additional investigation is needed. Often this means a Phase I ESA, which is more expensive and time-consuming.
Can the RSRA be used for non-SBA commercial real estate loans?
Yes. 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 RSRA has many advantages over simply ordering a government database report:
- The RSRA's additional historical records make it quite valuable.
- The professional opinion alone can be worth its weight in gold.
- These summary-style reports are a fraction of the cost of other forms of environmental assessment.
- They 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 RSRA provider?
- Our unique "Clean or Free" guarantee means you will never be upsold to a more expensive report. Your fee is waived if we find an "elevated risk", and any payment is immediately refunded. You are free to engage anyone you choose for the Phase I, so you are never "double-dipped" with consulting fees.
- Easy and quick to order on our secure website.
- We perform RSRAs across the United States. We have 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 five days or more.
- Pricing from $499.
- Experience counts — we have been working within the SBA process since 1993.
- Every report is performed by a 25-year-plus veteran of the environmental risk industry.
Call (800) 769-7437 with any questions about how a Sierra EZ-Screen can make your deal flow faster, less risky and less expensive, or place an order on our secure ordering portal.