Glossary · The loan itself
In short
Insurance required by the SBA for any collateral property located in a Special Flood Hazard Area (SFHA) to protect against damage from flooding.
If your business property or any collateral is in an SFHA, you must obtain flood insurance from the National Flood Insurance Program (NFIP) or an approved private insurer. This is a mandatory closing condition and an ongoing expense. Ensure the policy covers the full insurable value or the maximum available, whichever is less.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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