[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR120.170]

[Page 226-227]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 120_BUSINESS LOANS--Table of Contents
 
            Subpart A_Policies Applying to All Business Loans
 
Sec.  120.170  Flood insurance.

    Under the Flood Disaster Protection Act of 1973 (Sec. 205(b) of Pub. 
L. 93-234; 87 Stat. 983 (42 U.S.C. 4000 et seq.)), a loan recipient must 
obtain flood insurance if any building (including mobile

[[Page 227]]

homes), machinery, or equipment acquired, installed, improved, 
constructed, or renovated with the proceeds of SBA financial assistance 
is located in a special flood hazard area. The requirement applies also 
to any inventory (business loan program), fixtures or furnishings 
contained or to be contained in the building. Mobile homes on a 
foundation are buildings. SBA, Lenders, CDCs, and Intermediaries must 
notify Borrowers that flood insurance must be maintained.