Glossary · Doing the deal
In short
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.
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.
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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