{"ok":true,"canonical_url":"https://dealroom.so/glossary/special-flood-hazard-area","api_url":"https://dealroom.so/api/public/glossary/special-flood-hazard-area","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"special-flood-hazard-area","term":"Special Flood Hazard Area","aka":"SFHA","group":"Doing the deal","definition":"A specific zone identified by FEMA as having a 1% or greater annual chance of flooding. If the business property is in an SFHA, flood insurance is legally required for your SBA loan.","what_it_means":"A flood hazard determination will confirm if the property falls into an SFHA. If it does, be prepared for mandatory flood insurance costs, which can be significant. This is a non-negotiable requirement for SBA loan approval and ongoing servicing, so factor it into your deal economics.","url":"https://dealroom.so/glossary/special-flood-hazard-area","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"flood-hazard-area","term":"Flood Hazard Area","url":"https://dealroom.so/glossary/flood-hazard-area"},{"slug":"flood-insurance","term":"flood insurance","url":"https://dealroom.so/glossary/flood-insurance"},{"slug":"flood-hazard-determination","term":"flood hazard determination","url":"https://dealroom.so/glossary/flood-hazard-determination"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"}],"related_questions":[{"question":"What environmental due diligence is required for real estate collateral located in a flood hazard area for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-environmental-due-diligence-is-required-for-real-estate-collateral-located-in-a-flood"},{"question":"What if my business is located in a rural or underserved area?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-is-located-in-a-rural-or-underserved-area"},{"question":"What if the business I want to acquire is located in a rural or underserved area?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-want-to-acquire-is-located-in-a-rural-or-underserved-area"},{"question":"In what specific areas does the SBA typically scrutinize a lender's \"prudent lending standards\" during an oversight review?","url":"https://dealroom.so/for-lenders/questions/in-what-specific-areas-does-the-sba-typically-scrutinize-a-lender-s-prudent-lending-standa"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Special Flood Hazard Area","url":"https://dealroom.so/glossary/special-flood-hazard-area","source_type":"DealRoom Data"}}