APPENDIX 6 : SBA ENVIRONMENTAL INDEMNIFICATION AGREEMENT 2025

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With respect to the conditions the indemnitor must satisfy in order to receive the sunset, the most important condition is that the borrower must deliver a clean environmental report, in form and substance reasonably acceptable to the lender, at the time the loan is repaid in full (or closer to the date of the sunset)
An indemnity clause is a contractual clause providing that one party is responsible for any losses or damages arising from a certain event or set of circumstances. In effect, the indemnity clause shifts the risk of that event occurring from the indemnified party to the indemnifying party.
Environmental indemnification is a contractual agreement where one party agrees to compensate another for any losses or damages arising from environmental issues related to a property or operation.
A loan agreement will generally contain an indemnity clause. An indemnity is an obligation by one person (the indemnitor) to provide compensation for a particular loss suffered by another person (the indemnitee). Indemnities must be clearly and precisely worded in the contract in order to be enforceable.
What Is an Indemnification Clause? An indemnification clause is a legally binding agreement between two parties specifying that one party (the indemnifying party) will compensate the other party (the indemnified party) for any losses or damages that may arise from a particular event or circumstance.

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An indemnification clause is an agreement where one party, the indemnifier, agrees to cover the losses or damages of the other party, the indemnitee, under specific circumstances defined in the contract. It is also known as the indemnity clause or the hold harmless provision.
Adding an indemnity agreement to a promissory note requires the borrower to execute and deliver a replacement promissory note if the original note is lost, destroyed, stolen, or damaged. Such an agreement protects the noteholders ability to enforce the loan.

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