Floods of 2008: FEMA, SBA and Beyond

1. Floods of 2008: FEMA, SBA and Beyond Presented by Kerry Finley & Kyle W. Wilcox Simmons Perrine PLC 115 Third Street SE, Suite 1200 Cedar Rapids, Iowa 52401 (319) 366-7641

2. FEMA: Overview • Counties declared federal disaster areas and eligible for federal Individual Assistance programs from FEMA • Adams, Allamakee, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cedar, Cerro Gordo, Chickasaw, Clayton, Crawford, Delaware, Des Moines, Fayette, Floyd, Franklin, Fremont, Hamilton, Hancock, Hardin, Harrison, Jasper, Johnson, Jones, Kossuth, Lee, Linn, Louisa, Madison, Mahaska, Marion, Marshall, Mills, Monona, Muscatine, Page, Polk, Scott, Story, Tama, Union, Wapello, Warren, Webster, Winneshiek and Wright.

3. Register even if Insured • Homeowners, renters, businesses and non-profit organizations • encouraged to register with FEMA and/or the SBA even if they have insurance. • FEMA and the SBA do not duplicate insurance payments or pay deductibles, but applicants may be eligible for assistance with expenses not covered by insurance. • Under-insured may be reconsidered after claims have been settled.

4. FEMA: Basic Info • The maximum amount of FEMA individual assistance from FEMA:$28,800 • Register online at any time at http://www.fema.gov/ • Register by telephone at • 1-800-621-FEMA (3362) or at TTY 1-800-462-7585 • Calls answered 8 a.m. to 6 p.m. seven days a week. • FEMA Temporary Locations • Open 7 days a week from 8:00 am to 7:00 pm: • Harding Middle School: 4801 Golf Street NE • Westdale Mall: 2600 Edgewood Road SW Prairie High School • Prairie High School: 401 76th Avenue SW • Palo Fire Station: 506 Main Street, Palo, Iowa

5. Assistance for “Housing Needs” • "Housing Needs" assistance may be used to repair any of the following: • Structural parts of home (foundation, outside walls, roof). • Windows, doors, floors, walls, ceilings, cabinetry. • Septic or sewage system. • Well or other water system. • Heating, ventilating, and air conditioning system. • Utilities (electrical, plumbing, and gas systems). • Entrance and exit ways from your home, including privately owned access roads. • Blocking, leveling, and anchoring of a mobile home and reconnecting or resetting its sewer, water, electrical, fuel lines, and tanks.

6. Housing Assistance • Temporary Housing • Money for rent a different place to live • government provided housing units • Repair • Money to repair damage to primary residences (not covered by insurance) • Goal is to make the home safe, sanitary and functional • Replacement • Money to replace homes destroyed by the disaster not covered by insurance • Permanent Housing Construction • Direct assistance or money may be available for the construction of a home in extraordinary circumstances • Only available in insular areas or remote locations specified by FEMA where no other type of housing assistance is possible

7. FEMA: Other Assistance • Money is available for necessary expenses and serious needs caused by the disaster. • Disaster-related medical and dental costs. • Disaster-related funeral and burial cost. • Clothing; household items (room furnishings, appliances); tools (specialized or protective clothing and equipment) required for your job; necessary educational materials (computers, school books, supplies). • Fuels for primary heat source (heating oil, gas). • Clean-up items (wet/dry vacuum, dehumidifier). • Disaster damaged vehicle. • Moving and storage expenses related to the disaster (moving and storing property to avoid additional disaster damage while disaster-related repairs are being made to the home). • Other necessary expenses or serious needs as determined by FEMA. • Other expenses that are authorized by law.

8. Unemployment Benefits • The Disaster Unemployment Assistance (“DUA”) program provides unemployment benefits and re-employment services to individuals who have become unemployed because of major disasters. • Benefits • begin with the date the individual was unemployed • can extend up to 26 weeks after the presidential declaration date • DUA benefits are made available to individuals not covered by other unemployment compensation programs • self-employed, farmers, migrant and seasonal workers, and those who have insufficient quarters to qualify for other unemployment compensation. • Must register with Iowa’s Workforce Development to receive DUA benefits.

9. Free legal Assistance • The Iowa State Bar Association, Polk County Bar Association Volunteer Lawyers Project and the American Bar Association Young Lawyers Division is being staffed by attorneys from around the state. The number is: (877) 775-8882 • The Iowa State Bar Association also has a Disaster Relief Hotline at : 515-697-6863

10. SBA: Basic Contact Info • http://www.disastercustomerservice@sba.gov • Telephone:1-800-659-2955. • SBA Cedar Rapids Office • 2750 1st Avenue NE, Suite 350 • Cedar Rapids IA 52402-4831 • Telephone: (319) 362-6405 • Hours: 8:00 - 4:30 • Kirkwood Small Business Development Center • Telephone: (319) 398-5623.

11. SBA Recovery Center • SBA Recovery Center • Westdale Mall (2600 Edgewood Rd. SW in Cedar Rapids) • Hours: 9:00 - 6:00 • Specialists from the following organizations are available to meet individually with each business owner: • U. S. Small Business Administration (SBA) Disaster Loans • U. S. Small Business Administration (SBA) Government Contracting • Iowa Small Business Development Centers (SBDCs) • Service Core of Retired Executives (SCORE) • Women’s Business Center • City of Cedar Rapids

12. SBA Loans Available • SBA low interest disaster loans available to • Individual homeowners • Renters • Small business owners • Types • Physical Disaster Loans: for losses up to $40K for personalty and $250K for real property that are not covered by insurance • Economic Injury Disaster Loans (“EIDLs”) may also be available for up to $1.5 million • Homeowners and renters must first register with FEMA • where credit was not likely available to the individual or business borrower, interest on SBA loans will not exceed 4% annually • where credit is otherwise available, interest generally will not exceed 8% annually

13. SBA: Documentation • Small businesses: SBA Form 5 • Individual Homeowners and renters must have previously registered with FEMA • SBA will use FEMA Info to partially complete SBA Form 5C for applicant • Insurance proof of loss or coverage information • IRS form #8821(to verify income) • EIDL loans • Monthly sales info form and schedule of liabilities must be provided

14. SBA Loan Deadlines • Physical Disaster Loan application should be filed within 60 days of the disaster declaration • An EIDL loan application should be filed within 9 months of the disaster declaration • Must be current on all IRS filings to qualify for loan

15. Assistance from State of Iowa • Iowans with household incomes of up to 130 percent of federal poverty level may apply for a grant of up to $3,300 • reimbursement program; applicants must include receipts for uninsured loss when applying for help • The Iowa Department of Human Services online : http://dhs.iowa.gov/

16. IRS Relief • Tax Disaster Loss Kit: 1-800-829-3676 • Extensions • Postponement to July 28, 2008 • The postponement applies to return filing, tax payment and certain other time-sensitive acts otherwise due between May 25 and July 28, 2008 • Expedited Refunds • IRS can expedite refunds due to taxpayers in a federally declared disaster area

17. Tax Considerations • Casualty losses from a declared disaster • may deduct loss • for the year in which the casualty actually occurred, or • elect to deduct the loss on the tax return for the preceding tax year. • the amount of total annual casualty losses must exceed 10 percent of AGI by at least $100. • Losses from federally declared disaster • the taxpayer may choose which of those two tax years provides the better tax advantage

18. Tax: Insurance Proceeds • Insurance Proceeds to extent they exceed basis • May use Section 1033 to avoid tax if proceeds are used to replace property • Generally, property must be replaced within 2 years in order to defer gain