Client Advisory – Disaster Recovery Assistance in the Wake of Hurricane Sandy

November 08, 2012

We hope that those reading this were safe throughout the recent storms, and that you are well on your way to returning to your daily routines. For those who are still suffering in their aftermath, please know that we at Farrell Fritz are here to assist in any way we can. In that vein, we’ve compiled the information below that you might find helpful. Please consider passing it along to anyone who might find it useful, so that our community as a whole might begin to heal.

Insurance Claims
– It’s important to file claims as soon as possible. If you have questions concerning your insurance coverage, or if you’ve been denied coverage, we may be able to assist you.

SBA Disaster Loans
– Through the SBA’s Office of Disaster Assistance, homeowners, renters, and businesses of all sizes may apply for long-term, low-interest loans.

– Application deadlines are December 31, 2012 for Physical Damage loans, and July 31, 2013 for Economic Injury loans.

– The New York State Small Business Development Center (SBDC) has set up temporary locations, including in Farmingdale and Long Island City, to assist businesses affected by the storms. Details can be found at http://www.nyssbdc.org/disaster.html.

– FEMA and the SBA have also opened up disaster recovery centers.

– Additionally,there is a flyer attached to this advisory regarding a program taking place in Stony Brook this upcoming Monday, November 12, 2012 where one-on-one assistance will be provided for small businesses as they navigate through the recovery process. Representatives will be available from the U.S. Small Business Administration (SBA), as will Business Advisors from the Stony Brook SBDC, to help small businesses learn about the resources available to them and to complete all the necessary forms.

FEMA
– The Federal Emergency Management Administration (FEMA) provides disaster assistance to individuals and families whose property has been damaged or destroyed by a federally-declared disaster, and whose losses are not covered by insurance.

– Register for FEMA assistance or call FEMA at (800) 621-3362.

Other Considerations
– If you’ve been contemplating gifting property before year’s end for estate planning or other purposes, evaluate any impact that the storms have had on the value of such property.

– Executors of the estate of a decedent who died within the past six (6) months should consider whether the storms have affected the value of any estate assets. If there has been a decrease in value, executors may want to consider electing the alternate valuation under § 2032 of the Internal Revenue Code, which permits the estate to pay tax on the value on the date of death or the six (6) month anniversary, whichever is lower.

– Businesses which have corporate transactions pending should consider revisiting valuations and/or restructuring payment provisions (e.g. to provide for earn-out payments) in light of uncertainty about values and revenues going forward.

If we can help you in any way, please reach out to any attorney at Farrell Fritz with whom you’ve worked in the past or, if you have no contact at Farrell Fritz, please call or email one of the following attorneys:

Nancy Lieberman | (516) 227-0638
nlieberman@farrellfritz.com

Christopher Kent | (631) 367-0710
ckent@farrellfritz.com

Stephen Melore | (516) 227-0634
smelore@farrellfritz.com

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