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
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.
Register even if Insured

Homeowners, renters, businesses and nonprofit 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.
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
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.
Housing Assistance

Temporary Housing



Repair



Money to repair damage to primary residences (not covered by
insurance)
Goal is to make the home safe, sanitary and functional
Replacement


Money for rent a different place to live
government provided housing units
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
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.
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



DUA benefits are made available to individuals not covered by
other unemployment compensation programs


begin with the date the individual was unemployed
can extend up to 26 weeks after the presidential declaration date
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.
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) 7758882
 The Iowa State Bar Association also has a
Disaster Relief Hotline at : 515-697-6863
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.
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
SBA Loans Available

SBA low interest disaster loans available to




Types





Individual homeowners
Renters
Small business owners
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
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
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
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/
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
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
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
