[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR123.403]



[Page 354-355]

 

                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



[[Page 355]]



a building leased primarily for commercial rather than residential 

purposes (SBA will determine this based upon a comparative square 

footage basis).