[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR123.403]

[Page 335]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 123--DISASTER LOAN PROGRAM--Table of Contents
 
                Subpart E--Pre-Disaster Mitigation Loans
 
Sec. 123.403  When is your business eligible to apply for a pre-disaster mitigation loan?

    To be eligible to apply for a pre-disaster mitigation loan your 
business must meet each of the following criteria:
    (a) Your business, which is the subject of the pre-disaster 
mitigation measure, must be located in a participating pre-disaster 
mitigation community. Each State, the District of Columbia, Puerto Rico, 
and the Virgin Islands have at least one participating pre-disaster 
mitigation community. Contact your regional FEMA office to find out the 
locations of participating pre-disaster mitigation communities or visit 
the FEMA Web site at http://www.fema.gov.;
    (b) If your business is proposing a mitigation measure that protects 
against a flood hazard, the location of your business which is the 
subject of the mitigation measure must be located in a Special Flood 
Hazard Area (SFHA). Contact your FEMA regional office to find out the 
locations of SFHAs or visit the FEMA Web site at http://www.fema.gov.;
    (c) As of the date your business submits a complete Pre-Disaster 
Mitigation Small Business Loan Application to SBA (see Sec. 123.408 for 
what SBA's considers to be a complete application), your business, along 
with its affiliates, must be a small business concern as defined in part 
121 of this chapter. The definition of small business concern 
encompasses sole proprietorships, partnerships, corporations, limited 
liability entities, and other legal entities recognized under State law;
    (d) Your business, which is the subject of the mitigation measure, 
must have operated as a business in its present location for at least 
one year before submitting its application;
    (e) Your business, along with its affiliates and owners, must not 
have the financial resources to fund the proposed mitigation measures 
without undue hardship. SBA makes this determination based on the 
information your business submits as a part of its application; and
    (f) If your business is owning and leasing out real property, the 
mitigation measures must be for protection of a building leased 
primarily for commercial rather than residential purposes (SBA will 
determine this based upon a comparative square footage basis).