---
kind: "range"
citation: "13 C.F.R. §§ 120.170–120.172"
title: "13"
from: "120.170"
to: "120.172"
count: 3
url: "https://uscodex.org/cfr/13/120.170..120.172"
---

# §120.170. Flood insurance.


Under the Flood Disaster Protection Act of 1973 ([Sec. 205(b)](/cfr/13/205.md?p=b) of Pub. L. 93-234; 87 Stat. 983 ([42 U.S.C. 4000](/usc/42/4000.md) et seq.)), a loan recipient must obtain flood insurance if any building (including mobile 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.


# §120.171. Compliance with child support obligations.


Any holder of 50% or more of the ownership interest in the recipient of an SBA loan must certify that he or she is not more than 60 days delinquent on any obligation to pay child support arising under:

- (a) An administrative order;
- (b) A court order;
- (c) A repayment agreement between the holder and a custodial parent; or
- (d) A repayment agreement between the holder and a State agency providing child support enforcement services.

# §120.172. Flood-plain and wetlands management.

- (a) All loans must conform to requirements of Executive Orders 11988, “Flood Plain Management” ([3 CFR](/cfr/3.md), 1977 Comp., p. 117) and 11990, “Protection of Wetlands” ([3 CFR](/cfr/3.md), 1977 Comp., p. 121). Lenders, Intermediaries, CDCs, and SBA must comply with requirements applicable to them. Applicants must show:
  - (1) Whether the location for which financial assistance is proposed is in a floodplain or wetland;
  - (2) If it is in a floodplain, that the assistance is in compliance with local land use plans; and
  - (3) That any necessary construction or use permits will be issued.
- (b) **Generally, there is an 8-step decision making process with respect to—**
  - (1) Construction or acquisition of anything, other than a building;
  - (2) Repair and restoration equal to more than 50% of the market value of a building; or
  - (3) **Replacement of destroyed structures.**
- (c) SBA may determine for the following types of actions, on a case-by-case basis, that the full 8-step process is not warranted and that only the first step (determining if a proposed action is in the base floodplain) need be completed:
  - (1) Actions located outside the base floodplain;
  - (2) Repairs, other than to buildings, that are less than 50% of the market value;
  - (3) Replacement of building contents, materials, and equipment;
  - (4) Hazard mitigation measures;
  - (5) Working capital loans; or
  - (6) **SBA loan assistance of $1,500,000 or less.**