My question deals with a loan secured by non-real estate located in a flood zone. This is a business loan secured by equipment. The building is leased. FDPA only indicates contents insurance when RE is part of the collateral. SBA requires flood on equipment. How do you handle this? How about what notice that the equipment is in a Flood hazard area, you would not use the FEMA form since you can not get the flood insurance under FDPA?

I am not sure the SBA requires any notice, you just have to maintain proof of flood insurance.

thanks