State of Emergency Executive Order Suspends Legal Deadlines
In an amendment to his initial Executive Order declaring a State of Emergency, the Governor has issued an Executive Order (attached) that all legal deadlines applicable to legal proceedings in all courts, administrative agencies and boards are hereby suspended until September 24, 2021.
The Executive Order also orders hotels to cancel all reservations that would result in the displacement of first responders, healthcare workers, or individuals performing disaster or emergency related work.
Update From The Louisiana State Board of Medical Examiners
The Louisiana State Board of Medical Examiners (LSBME) has issued an order extending the expiration date for any medical provider licensed by the LSBME whose license expires on August 31, 2021 to September 30, 2021 due to the ongoing impact of Hurricane Ida.
The LSBME cancelled their Board meeting scheduled for August 30, 2021 and the next Board meeting is scheduled for September 20, 2021.
COVID EIDL Program Updates
The US Small Business Administration (the “SBA”) has made significant changes to the rules and regulations of the COVID Economic Injury Disaster Loan program (the “EIDL”). The SBA issued an Interim Final Rule, effective September 8, 2021, that, among other things:
- Increases the maximum loan amount for the EIDL to $2,000,000.00 (the previous maximum was $500,000); and
- Broadens the use of loaned funds. Prior to the Interim Final Rule, EIDL loaned funds could only be used for working capital necessary to carry the business until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury. A loan recipient could not use the loaned funds to pay Federal debt or prepayment non-Federal existing debt. Now, a loan recipient can use the loaned funds for payments on all forms of business debt, including loans owned by a Federal agency (including SBA) or a Small Business Investment Company (SBIC) licensed under the Small Business Investment Act. Further, the loaned funds may be used to make debt payments including monthly payments, deferred interest, and pre-payment of business debt, except that pre-payments will not be permitted on any debt owned by a Federal agency (including SBA) or an SBIC. COVID EIDL loan proceeds may be used to pay debt incurred both before and after submitting the COVID EIDL loan application.
It is important to act fast when it comes to the EIDL as there are a limited amount of funds available. The Interim Final Rule can be found here: https://www.govinfo.gov/content/pkg/FR-2021-09-08/pdf/2021-19232.pdf Please do not hesitate to reach out to Adam M. Stumpf (as@chehardy.com) with additional questions.
SBA Financial Assistance for Hurricane Ida
The US Small Business Administration (the “SBA”) is offering financial assistance in the form of loans for those located in the disaster areas caused by Hurricane Ida.
The available loans are:
Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.
Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
Applicants must have a credit history acceptable to the SBA and must show an ability to repay the loan. The SBA is requiring collateral for physical loss and economic injury loans over $25,000.
The interest rates for the loans range from 5.710% to 1.563% depending on whether you have credit available elsewhere. The term of the loans will be between 7 and 30 years.
There are restrictions on loan eligibility, including:
Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.
Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited.
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.
If you have any questions, please reach out to Adam M. Stumpf (as@chehardy.com). You can find more information and apply here: https://www.sba.gov/funding-programs/disaster-assistance
Hurricane Ida Tax Deadline Relief
The IRS has announced tax deadline relief for Louisiana residents impacted by Hurricane Ida. Individuals and households who reside or have a business anywhere in the state of Louisiana now have until January 3, 2022 to file their taxes. The new deadline applies to the filing of various individual and business tax returns and to make tax payments. For example, it applies to the quarterly estimated tax payment, normally due on September 15, and the quarterly payroll and excise tax returns normally due on November 1, 2021 and to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15, 2021. More information can be found here: https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-hurricane-ida-in-louisiana
Please do not hesitate to contact Adam M. Stumpf at as@chehardy.com if you have any questions.
Hurricane and Flood Insurance Claims: 5 Things To Do After The Storm
Many homeowners in the area sustained hurricane damage to their homes. Others also experienced flooding. Prior work with clients on their hurricane and flood insurance claims revealed that proper documentation and organization of claims made a huge difference in their outcome. In preparation for your hurricane and/or flood insurance claim, here are some things you should do after the storm:
- Contact your insurance agent or company and report your claim. You must give prompt notice of your loss.
- Document, document, document. Take pictures of everything. Keep receipts of all hurricane and flood related expenses.
- Separate damaged from undamaged property. Do all you can to protect undamaged property, including your home and its contents.
- Make a detailed list of damaged contents (item, brand name, model number, cost, etc.). This will be used with the proof of loss or similar statement submitted for your claim.
- Prepare yourself for the claim process. Finalization and payment of your claim does not happen immediately. It is more akin to a marathon rather than a sprint.
Attorney Jennifer Lee (jal@chehardy.com) and Chehardy Sherman Williams work with individuals and business clients on insurance related matters, including hurricane and flood insurance claims. For assistance with your insurance claim, please email Jennifer or call 985.269.7220.
The Legal Timelines That Apply To Insurers And Can Help You
Insurance companies meeting their obligations can be crucial to the economic survival of homeowners and property owners. Meeting those obligations timely can be just as crucial. For that reason, certain laws attempt to protect policyholders from abuses and delays.
- Time to Begin Adjustment. Typically, Insurers must initiate adjustment of your claim within 14 days of when you notify them of the claim. This period is extended to 30 days in times of emergency and can be extended further by the insurance commissioner. Whatever the case, it is important to begin the process because it initiates both your claim and the insurer’s responsibilities.
- Time to Pay Claims. Separately from their responsibility to begin adjustment, insurers must pay claims within 30 days of receiving satisfactory proof of loss. Satisfactory proof of loss is information sufficient to place them on notice of the value of your claim. Further, insurers have a duty to view this information fairly. This means its imperative to send to your insurer any evidence of your claim, including estimates, invoices, or receipts. Remember to document these communications.
Those who wish for more information on this can read La. R.S. 22:1892, 22:1973, or contact their attorney.
Louisiana Dept. of Health allows Intermediate Care Facilities for Persons with Developmental Disabilities to relocate due to Hurricane Ida.
On August 26, 2021, a State of Emergency was declared by Governor Edwards due to Hurricane Ida. To ensure the health, safety, and coordination of services to patients, the Louisiana Department of Health will allow a licensed Intermediate Care Facilities for Persons with Developmental Disabilities (an “ICF/DD”) to temporarily relocate it patients to another approved licensed location within Louisiana for up to one-year if: (a) the facility has evacuated or temporarily located outside of its licensed region; (b) has been severely/damaged or destroyed or is otherwise inhabitable; (c) the ICF/DD intends to return once all repairs are completed; (d) the ICF/DD identifies another location that can be licensed as an ICF/DD and submits notice to the La. Dept. of Health for a temporary license by September 15, 2021; (e) the ICF/DD allows all clients to relocate to the temporary licensed location; (f) the ICF/DD is responsible for ensuring that all essential care and services are provided to each recipient; and (g) the ICF/DD does not interfere with a client’s right to choose a provider of his/her choice.
This relocation also allows for Medicaid vendor payments to resume, assuming certain criteria are met.
For more information regarding this process or any questions relating patient care during the cleanup and recovery from Hurricane Ida, please feel free to contact us at info@chehardy.com.
Federal Government Hurricane Assistance (FEMA & SBA)
Hurricane Ida has created challenging conditions for many businesses throughout the State. Federal government assistance could play a vital role in your recovery plan. Chehardy Sherman Williams attorney Adam Stumpf (as@chehardy.com) reminds you that businesses should look to the U.S. Small Business Administration (the “SBA”), not only FEMA, for disaster assistance options.
As a result of Hurricane Ida, businesses throughout the State of Louisiana are in dire need of financial assistance. FEMA is not the only agency that should be looked to for this assistance. The SBA offers disaster assistance in the form of low interest loans to businesses and nonprofit organizations located in regions affected by declared disasters. The SBA also provides eligible small businesses and nonprofit organizations with working capital to help overcome the economic injury of a declared disaster.
Currently, businesses and individuals located in the following Parishes are eligible to apply for assistance: Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge, and West Feliciana.
The application process can be begun here. The SBA is requiring applicants to create an account via login.gov. Once an account has been created and a few general questions are answered, the SBA will provide the applicant with a specific loan application depending on whether it is a sole proprietor, corporation, limited liability company, nonprofit, etc. Information related to income, revenues, and insurances will need to be provided.
If you are currently in need, or anticipate being in need, you are encouraged to create an account and apply now.
Three Things Policyholders Need to Know
We hope this finds you and your family safe. Now that Hurricane Ida has passed, the rebuild begins. For most homeowners, insurance plays a large role. Chehardy Sherman Williams attorney Jacob Young offers three areas of importance when dealing with your insurance company.
- Initiation. The first step is initiating your claim. Typically, your policy or declarations page, contains instructions for a reporting a claim. If you cannot find that information, many people contact their insurance agent. This may be helpful but keep in mind your agent is not often your insurer. Take the next step of contacting the insurer directly. Remember, you can always request a copy of your policy from your agent or the insurance company itself.
- Documentation. From initiation and throughout, documenting your loss is crucial. Documentation is an action under your control to better help your claim. Some common ways to document: Photograph the property damage. Photograph all your personal property. Journal or keep a notebook. Keep any documentation of remedial. Lastly, often overlooked, is to document your communications with your insurance company. Email if possible, take notes, and retain copies of anything you provide.
- Mitigation. This protects both your claim and your property. Your policy contains a ‘duty to mitigate.’ This means a duty to prevent damage from getting worse. For example, placing a tarp over roof damage, securing the property’s broken windows or doors. Of course, when you take mitigation steps, make sure to document. If it’s a cost incurred, it may be covered under the remedial repairs allowed in your policy.