[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR123.401]

[Page 282]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 123--DISASTER LOAN PROGRAM--Table of Contents
 
Sec. 123.401  What types of mitigating measures are eligible for a pre-disaster mitigation loan?

    Mitigation means specific measures taken by you to protect your real 
property or leasehold improvements from future disasters in Project 
Impact communities. If you are a landlord, the measures must be for 
protection of property leased primarily for commercial rather than 
residential purposes, to be determined on a comparative square footage 
basis. Additionally, SBA will consider providing a pre-disaster 
mitigation loan for relocation if your commercial real property is 
located in a SFHA (Special Flood Hazard Area) and you relocate outside 
the SFHA but remain in the same Project Impact community. If the 
mitigation measures protect against a flood hazard, the applicant small 
business must be located in an existing structure in a SFHA. The local 
Project Impact coordinator will confirm that your proposed project is in 
accordance with specific Project Impact priorities and goals of that 
community. SBA will verify that the cost estimate is reasonable to 
accomplish each project to determine if the project is likely to 
accomplish the stated desired mitigation results. SBA verification and 
subsequent loan approval are not a guarantee that the project will 
prevent damages in future disasters.