Record Search Risk Assessment (RSRA)

Record Search Risk Assessment (RSRA)

A Record Search with Risk Assessment (RSRA) report is a faster, less expensive form of environmental due diligence which was developed by the Small Business Administration (SBA) for lending money on commercial properties. In conjunction with the American Society for Testing and Materials (ASTM) they developed ASTM E1528-14 defining the scope of a RSRA. Lenders wanted to lower the substantial transaction costs they felt were a barrier to lending. The SBA recognized that there are different levels of risk regarding commercial properties depending on the historic use. For example; a building that was used for retail, built in the last ten years on a plot of land that was formerly a cornfield. In this case, it doesn’t seem to make sense to spend several thousand dollars to have a full Phase 1 ESA when something far less expensive like a RSRA will do.