SBA Loans in Flood Zones

A recent analysis by WNYC & ProPublic concluded that nearly 1/2 of the $1.5 Billion in Federal loans approved by the Small Business Administration (SBA) are to business and home owners located in areas identified as "flood prone" by the Federal Emergency Management Agency (FEMA).   The SBA is not requiring alternative designs (e.g. raising properties on stilts) for the properties impacted by their loans; it only is assessing the traditional financial viability of loan recipients, assuming no future extreme weather event will occur.  The SBA would benefit from seriously considering the potential financial and community risks of their loans in the context of future extreme weather events, educating potential loan recipients of these risks, and identifying ways to advance smarter building and community designs in a timeframe consistent with immediate and longer-term redevelopment efforts.

Location of SBA post-disaster loans to date.  Source: http://projects.propublica.org/sandy-sba/

Location of SBA post-disaster loans to date.  Source: http://projects.propublica.org/sandy-sba/