The federal government has low loans available for those affected by flooding in Louisiana, but the window is closing.  You must apply for an SBA loan by October 13, 2016.  

Loans can be used for flood damaged property, including your home, your belongings, and your business.  You do not need to own a business to apply - anyone in the area can qualify.  

Interest rates are as low as 1.563%.  You may even be able to refinance your existing mortgage with a low interest SBA loan.  

Read more here.  Visit a disaster recovery center or call the SBA's hotline.  

Anyone affected by the flooding in Louisiana may be eligible for low interest loans from the SBA.  It is meant to help those with property and economic damage not covered by flood insurance.  This may be the biggest federal program to help you rebuild - and even if you do not need a loan it is worth considering because of the interest rates.  The deadline for applying for loans to help with physical damage is October 13, 2016.  

If you own your house and it was damaged, you may be eligible for a low interest loan of up to $200,000 to help with repairs and rebuilding.  If you have credit available elsewhere, your interest rate will be 3.125%.  If you cannot get credit elsewhere, your interest rate will be 1.563%.  These interest rates are significantly better than carrying a credit card balance, and probably beat the market rate for home equity loans.  You also may be able to refinance your existing mortgage with this program.  

Whether you own or rent, you may be eligible for a low interest loan of up to $40,000 to help fix or replace personal property damaged or destroyed in the flooding, such as furniture and clothing.  If you own a business that was damaged, you may be eligible for additional loan programs of up to $2,000,000 to get your business back on its feet.  

SBA representatives are physically present in Louisiana to help answer questions and accept applications.  They are located at these locations and times.  You can also read more about SBA disaster loans here or on the SBA website.  

Flood insurance and other government assistance may help pay for property damage if you or someone you know has been affected by the Louisiana flooding.  However, those payments may not be enough to cover all your expenses.  Low interest loans are available now, which can be a much cheaper option than carrying a high interest balance on a credit card.  We are highlighting two options, but there are many more opportunities out there if you or someone you know could use some financing.  

If you are looking for a relatively small amount of cash to help you through the near future until you get back on your feet, you may qualify for an unsecured personal loan through a bank.  Whitney Bank, for instance, is offering loans to qualified flood victims of up to $50,000, with low interest rates and no payments for 90 days.  Call Tyelise Vavasseur at (225) 381-0452 for information. 

If you are a flood victim and are looking for a larger loan or are looking to refinance your home mortgage, you may qualify for a low interest loan through the Small Business Administration (even if you do not own a business).  These loans typically require you to mortgage your home or other real property.  See more on SBA disaster loans here or visit a local disaster recovery center to speak with an SBA representative.  

A power of attorney is a document that authorizes another person to do something on your behalf.  If you or someone you know has been a victim of flood damage, executing a power of attorney to authorize someone else to deal with FEMA or your insurance adjuster on your behalf may be very helpful and convenient.   Similarly, perhaps you want to authorize someone else to be able to speak and contract with utility companies, contractors, your bank, or any other entity.  

If your elderly parents had flood damage, perhaps they would like to rely on you to take care of the discussions and paperwork for them.  If you find it difficult to find time and attention to devote to these issues during the day, because for instance you are busy or out of touch at work, you may want to give someone else the authority to have those discussions for you.  

If you want more information, call our office and we will be happy to discuss your situation.  If related to flood damage, we will also be happy to draft and execute a power of attorney for you at no charge.

Condon, Wood & Burkhart want to help people find the quickest path to recovery, so we are running a pro bono service for those affected by the floods.  If you have a flood-related issue, you are welcome to sit down with one of our attorneys to discuss your situation free of charge.  We will have computer terminals available for online FEMA filing and other applications if you do not have access to the internet.  Even if you do have internet access, but want help through the process, we can assist you with registrations and applications.  
 
You may call us at (225) 372-8877 to schedule an appointment, including after hours or on a weekend if your situation requires it.  You can also reach us by email on our contact page.  If making an appointment is difficult because of your circumstances, feel free to walk-in any time between 9AM and 5PM at our downtown office located at 457 Louisiana Avenue – we are on the corner of Louisiana Avenue and St. Charles Avenue one block from Christina’s Restaurant. 
 
While you are welcome to see us for any flood-related issue, we recommend you keep these things in mind if you have had property damage or injury due to flooding.  Please keep in mind that we will continue to update page, so please check back from time to time for more information.   
 
What to Do First

• Prepare yourself for a marathon.  Filing for benefits through the government or your insurance is often a long and arduous process, as is the physical act of rebuilding when there are so many people hiring contractors.
• You will need to prove all the damages to your property.  If you find your expensive flat screen TV smashed to pieces and floating in water, your first instinct is to toss it in the dumpster – don’t do that!  If you have no proof of the TV model and size, or the damage it sustained, you may not get compensated for it.  Think about how to document and prove all your damage before starting the cleanup:
  • Take as many pictures of everything as you can.  Videos work great too.  If possible, use a setting or app that can date & time stamp your photos.  Also, try to incorporate outside landmarks (neighbor’s house, street signs, trees) to prove that the pictures are definitively your house (an insurance adjuster may challenge you by claiming pictures could have been taken off the internet or from someone else’s house).  The best practice is to have a date and time stamped video that begins at the street and then slowly and methodically walks through and around the house and property to capture all facets of the damages.  Take your time!
  • Pull all receipts you can find of any piece of damaged property, either filed away physically or online through old emails, credit card statements, or store accounts.   Also, keep all receipts of your clean-up expenses (new materials, cleaning supplies) as they may be reimbursable.  
  • If possible, consider physically storing damaged items that are unique or particularly valuable somewhere (backyard, a shed) until all your claims are settled so that government and insurance agents can witness the damages first-hand.  Also keep pieces of damaged hardwood floors, tiles, and the like to prove the quality of materials damaged. 
  • Mark high water levels throughout your house.  Take pictures with a tape measure showing the distances if possible. 
  • Also make pictures of similar damages, including high water marks on vehicles and any motorized equipment.  
• You must generally try to mitigate your damages – this means you should be working with reasonable diligence to stop the situation from becoming worse.  If you let your flooded house sit for days or weeks without starting the cleanup and mold sets in, you might not get compensated for the mold damage because you could have but did not take steps to avoid it.  You should begin working as soon as you can to dry or tear out wet materials including carpets, floors, sheetrock, insulation and the like.   
• If you have any loans – notably your mortgage and car note – call your lender and tell them your situation.  They may be able to defer payment on your loans to give you time to get on your feet.  If you are already in default of your home mortgage, you may be eligible for a forbearance to delay any legal proceedings such as foreclosure.   
• Contact your insurance carrier to file a claim and register your situation with FEMA as soon as you can.  Keep in mind that most government assistance programs will require you to file a claim with your insurance carrier.  Most government assistance will also only cover you for what your insurance fails to do (or if you do not have insurance). 
• Make sure you have a snail mail address where mail can safely and consistently be sent to you and received.
• As you move along the process, be prepared to make and store copies of every piece of paper you submit to any entity.

 
FEMA

• Register your damages with FEMA by visiting DisasterAssistance.gov or calling (800) 621-3362 or TTY (800) 462-7585.  You can also download their app at www.fema.gov/mobile-app.
• Benefits are generally designed to help those in need for issues that insurance does not cover, either because your insurance does not cover all losses or because you have no insurance.  This may include money for temporary housing, repairs, replacements, construction, unemployment, and flood-related medical, dental, funeral, personal property, transportation, moving, storage, and other expenses. 
• Be prepared with the following information, which will be necessary when applying:  You will need
  • Your Social Security number
  • The address of the location where the damage occurred
  • Your current address
  • Your current telephone number
  • Your property insurance information
  • Your total household annual income
  • Your routing and account number for your checking or savings account
  • A description of your disaster-caused damage and losses
• Keep in mind if you have flood insurance, you will likely need to file a claim even if you are eligible to apply for government assistance. 

 
SBA

• The Small Business Administration provides low-interest, long-term loans for physical and economic damage, even if you do not own a business.

• Homeowners may apply for up to $200,000 to replace or repair their primary residence.  The loans may not be used to upgrade homes or make additions, unless required by local building code.  If you make improvements that help prevent the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA. 
• In some cases, SBA can refinance all or part of a previous mortgage when the applicant does not have credit available elsewhere and has suffered substantial disaster damage not covered by insurance.
• Renters and homeowners may borrow up to $40,000 to replace or repair personal property – such as clothing, furniture, cars and appliances – damaged or destroyed in a disaster. 
• SBA makes physical disaster loans of up to $2 million to qualified businesses or most private nonprofit organizations. These loan proceeds may be used for the repair or replacement of real property, machinery, equipment, fixtures, inventory, and leasehold improvements.  The SBA Business Physical Disaster Loan covers disaster losses not fully covered by insurance.  If you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include that amount in your disaster loan application. 
• If you are a small business, small agricultural cooperative, or private nonprofit organization, the SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.  Your loan amount will be based on your actual economic injury and your company's financial needs, regardless of whether the business suffered any property damage.
• If you are a small business unable to meet its ordinary and necessary operating expenses because an essential employee was called-up to active duty in his or her role as a military reservist, you may be eligible for a loan of up to $2 million.

 
Farm Service Agency (USDA)

• Farmers, ranchers and aquaculture operators may be eligible for loans up to $500,000 to cover production and property losses, excluding primary residence.

 
Local Government

• Contact your parish tax assessor's office if you have had damage to your property.  You may be entitled to an adjustment to lower your property taxes.
• Look online or contact your local municipal government (town, city, parish) to see if they have a local damage registration process.  If they do, then register there too.  These municipalities may be able to apply for additional assistance, and by every individual in the area registering their damages with the local government that helps the municipality prove that help is needed.
  
• Prior to starting any repair work, remember to go to your municipality and get a permit.  There are usually fees associated with pulling a permit, but municipalities often waive those fees in disaster situations.  An inspection will later take place.  Following this process is generally required by local law and may be necessary before receiving reimbursements from FEMA or your insurance.  

Before Hiring a Contractor

• You will want to get a contractor to start work on your damaged home as soon as possible.  But so will everyone else.  Be aware that this can cause issues not only with the amount of time it will take to complete work, but also with the quality of the work performed. 
• After a natural disaster, people are sometimes taken advantage of by dubious contractors.  This can leave you worse off than when the flood began.  We recommend the following, most of which is supplied by the Louisiana Attorney General’s office:
  • Ask friends and family for a recommendation of a reputable contractor.  If none are known, ask your insurance company for a reference. 
  • Don’t agree to a down payment of more than 33% of the total price.  It is better to negotiate the down payment to 10% to 20%.  It is not standard practice for a contractor to request full payment up front. 
  • Do not pay with cash.
  • Be sure to verify that the contractor is licensed by calling the Contractor’s Licensing Board at 800-246-1392 or visiting www.lslbc.louisiana.gov/contractor-search.
  • Ask for and check the contractor’s references (former customers).
  • Check the better business bureau website to see if the contractor has any complaints filed.
  • Review the contractor’s proof of insurance.
  • Accompany the contractor to their supply store and have the materials shipped directly to your home (not from the contractor’s shop).
  • Sign a written contract that is clear and that you can understand.  Do not get rushed into signing it – take your time to read it and think about having an attorney review it.   
  • Get multiple itemized bids for the work prior to signing a contract.
• Visit www.ag.state.la.us for more information or to file a complaint.