How Do Federal Agencies Assure That Disaster Loan Recipients Maintain Mandatory Flood Insurance

The disaster loan programs of the Farmers Home Administration (FmHA) and the Small Business Administration (SBA) were reviewed in an examination of the procedures used by federal agencies to ensure that disaster loan recipients maintain flood insurance when required as a condition for such loans. GAO reviewed legislation; agency policies, procedures, regulations, and guidelines; and gathered statistics on repeat flooding, flood insurance policies, and FmHA and SBA flood disaster loan activities since fiscal year 1975.