SBA Lenders must conduct due diligence to determine whether a property or site has historical significance.

If you're working with SBA Loans for property purchases or renovations, there's an important step to keep in mind—reviewing the historical significance of the property.

Under the National Historic Preservation Act, any SBA Project that might adversely affect a property listed on (or eligible for) the National Register of Historic Places (NRHP) requires special attention. This applies to individual properties as well as those located within a historic district.

SBA Lenders must conduct due diligence to determine whether a property or site is listed, or eligible to be listed, on the NRHP. The due diligence must follow prudent lending practices and be documented in the SBA Loan file.

Not deemed historically significant: The SBA Lender should document their research and include it in the loan file. No further review is necessary unless requested during loan processing.

Listed on NRHP or deemed historically significant: If you find that the property is historically significant, there are additional actions that must be taken, depending on the intended use of the property and funds. If the applicant has no plans to renovate or demolish the property, SBA still needs to be notified for a review and clearance of the transaction. If the applicant plans to alter, restore, or demolish any part of the building or site, the SBA must review and clear the planned renovation. This will involve consultation with the State Historical Preservation Office (SHPO) to determine whether the modifications will adversely affect the historical integrity of the property. SBA will not review the application request until the process is formally completed.

At Community Business Finance, we help you navigate the requirements of an SBA 504 Loan to ensure your business is set up for growth and success. Call us today to get started on your business dreams!