---
kind: "section"
citation: "13 C.F.R. § 120.172"
title: "13"
number: "120.172"
heading: "Flood-plain and wetlands management."
url: "https://uscodex.org/cfr/13/120.172"
---

# §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.**

## Notes

### Authority

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

### Source

Source: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.