Second Chance for COBRA for People Who Have Lost Their Jobs

UPDATE ( May 12, 2009): If you lost your job after September 1, 2009, you should have received notification by April 14 from your former employer about your second chance to enroll in COBRA. If you have not heard from your employer, contact him. Note that you may still be eligible if your employer closed the branch where you worked even if you turned down an offer of a job in another location. If you accepted a buyout which was followed by layoffs, that, too, would still count as involuntary termination. You are ineligible only if your employer went out of business or canceled group coverage (or if you were terminated because of gross misconduct). IF YOU WERE DENIED COBRA, you can appeal to the U. S. Department of Labor at www.dol/gov/cobra. You have only 60 from April 14 to apply, so please, if you think you qualify, ACT NOW!

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If you lost your job and did not elect to purchase COBRA, you will have another chance.
This is because ARRA (the American Recovery and Reinvestment Act of 2009) is now subsidizing 65% of the premiums. This means that you pay only 35%, still more than what you paid when you working, but much more affordable.
The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.
You should receive notification of your second chance no later than April 14, after which you have 60 days to respond.
The following information is taken from the Department of Labor Web site.
WHAT IS COBRA?

COBRA gives workers who lose their jobs, and thus their health benefits, the right to purchase group health coverage provided by the plan under certain circumstances.

If the employer continues to offer a group health plan, the employee and his/her family can retain their group health coverage for up to 18 months by paying group rates. The COBRA premium may be higher than what the individual was paying while employed but generally the cost is lower than that for private, individual health insurance coverage.
The plan administrator must notify affected employees of their right to elect COBRA. The employee and his/her family each have 60 days to elect the COBRA coverage, otherwise they lose all rights to COBRA benefits.
Note: COBRA generally does not apply to plans sponsored by employers with less than 20 employees. Many States have similar requirements for small plans providing benefits through an insurance company. The premium reduction is available for plans covered by these State laws.
Changes Regarding COBRA Continuation Coverage Under ARRA
Premium Reduction: The premium reduction for COBRA continuation coverage is available to "assistance eligible individuals".
An "assistance eligible individual" is the employee or a member of his/her family who is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009; elects COBRA coverage; and is eligible for COBRA as a result of the employee's involuntary termination between September 1, 2008 and December 31, 2009.
Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. There is no premium reduction for premiums paid for periods of coverage prior to February 17, 2009.
ARRA treats assistance eligible individuals who pay 35 percent of their COBRA premium as having paid the full amount. The premium reduction (65 percent of the full premium) is reimbursable to the employer, insurer or health plan as a credit against certain employment taxes. If the credit amount is greater than the taxes due, the Secretary of the Treasury will directly reimburse the employer, insurer or plan for the excess.
The premium reduction applies to periods of coverage beginning on or after February 17, 2009. A period of coverage is a month or shorter period for which the plan charges a COBRA premium. The premium reduction starts on March 1, 2009 for plans that charge for COBRA coverage on a calendar month basis. The premium reduction for an individual ends upon eligibility for other group coverage (or Medicare), after 9 months of the reduction, or when the maximum period of COBRA coverage ends, whichever occurs first. Individuals paying reduced COBRA premiums must inform their plans if they become eligible for coverage under another group health plan or Medicare.
Special COBRA Election Opportunity: Individuals involuntarily terminated from September 1, 2008 through February 16, 2009 who did not elect COBRA when it was first offered OR who did elect COBRA, but are no longer enrolled (for example because they were unable to continue paying the premium) have a new election opportunity. This election period begins on February 17, 2009 and ends 60 days after the plan provides the required notice. This special election period does not extend the period of COBRA continuation coverage beyond the original maximum period (generally 18 months from the employee's involuntary termination). COBRA coverage elected in this special election period begins with the first period of coverage beginning on or after February 17, 2009. This special election period opportunity does not apply to coverage sponsored by employers with less than 20 employees that is subject to State law.
Notice: Plan administrators must provide notice about the premium reduction to individuals who have a COBRA qualifying event during the period from September 1, 2008 through December 31, 2009. Plan administrators may provide notices separately or along with notices they provide following a COBRA qualifying event. This notice must go to all individuals, whether they have COBRA coverage or not, who had a qualifying event from September 1, 2008 through December 31, 2009.
Individuals eligible for the special COBRA election period described above also must receive a notice informing them of this opportunity. This notice must be provided within 60 days following February 17, 2009.
Expedited Review of Denials of Premium Reduction: Individuals who are denied treatment as assistance eligible individuals and thus are denied eligibility for the premium reduction (whether by their plan, employer or insurer) may request an expedited review of the denial by the U.S. Department of Labor. The Department must make a determination within 15 business days of receipt of a completed request for review. The Department is currently developing a process and an official application form that will be required to be completed for appeals.
Switching Benefit Options: If an employer offers additional coverage options to active employees, the employer may (but is not required to) allow assistance eligible individuals to switch the coverage options they had when they became eligible for COBRA. To retain eligibility for the ARRA premium reduction, the different coverage must have the same or lower premiums as the individual’s original coverage. The different coverage can not be coverage that provides only dental, vision, a health flexible spending account, or coverage for treatment that is furnished in an on-site facility maintained by the employer.
Income limits: If an individual’s modified adjusted gross income for the tax year in which the premium assistance is received exceeds $145,000 (or $290,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid. For taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers), the amount of the premium reduction that must be repaid is reduced proportionately. Individuals may permanently waive the right to premium reduction but may not later obtain the premium reduction if their adjusted gross incomes end up below the limits. If you think that your income may exceed the amounts above, consult your tax preparer or contact the IRS at www.irs.gov.
This fact sheet has been developed by the U.S. Department of Labor, Employee Benefits Security Administration, Washington, DC 20210. It will be made available in alternate formats upon request: Voice phone: 202.693.8664; TTY: 202.501.3911. In addition, the information in this fact sheet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996.

Photo courtesy of Thee Erin

Unemployment benefits increased to help people who have lost their jobs

During this economic crisis, the Federal Government is helping people who have lost their jobs and need unemployment insurance in two ways: It has extended the period of unemployment benefits 20 weeks beyond the regular state unemployment benefits. In states with high levels of unemployment, an additional 13 weeks beyond the 20 weeks is available. The program itself has been extended until May 31, 2010. In addition, people will start receiving an extra $25 supplement . Most states will have included the supplement at the beginning of March. If you do not receive your supplement in March, it will be applied retroactively when it does go into effect. The details taken from the Department of Labor site are below.

Government Fact Sheet

Emergency Unemployment Compensation, 2008 (EUC08) — Program Extension
The EUC08 program, created on June 30, 2008, provides up to 20 weeks of federally-funded benefits to eligible unemployed workers who have collected all their regular state unemployment benefits. An additional 13 weeks of EUC are available in states with high levels of unemployment.
The EUC08 program was scheduled to expire on Aug. 27, 2009. The recovery legislation, Public Law Number 111-5, which was enacted on Feb. 17, 2009, extends the expiration date of the EUC08 program to May 31, 2010.
The period during which an individual may establish eligibility for EUC08 is extended from March 31, 2009, to the week of unemployment ending on or before Dec. 31, 2009, and the "phase-out" or expiration date of the program is extended from Aug. 27, 2009 to May 31, 2010.
The recovery legislation does not provide additional weeks of benefits for individuals who have or will exhaust their EUC08 benefits.

Federal Additional Compensation (FAC)
The recovery legislation also created a new FAC program that provides a $25 supplement that is payable to individuals receiving state unemployment compensation (UC) or Federal UC. The $25 supplement does not apply to state-financed Additional Compensation programs.
All 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands executed agreements with the secretary of labor to administer this new program on behalf of the federal government on or before Feb. 21, 2009; therefore, the program is effective Feb. 22, 2009, in all states/jurisdictions.
States are modifying their automated benefit payment systems to implement FAC. Many states will begin to make payments during the week of March 1, 2009, for weeks of unemployment effective Feb. 22, 2009. However, due to the complexity of changing automated systems, some states have advised that they may implement later, making payments retroactively.
States will calculate the individual's weekly benefit amount and make any adjustments in accordance with state law to account for any earnings, and any other deductions (for example, severance and retirement/pension payments).
The $25 supplement is taxable. Therefore, states will include the total benefits received including the $25 increase(s) in issuing a 1099G to claimants.
The $25 supplement/payments will be paid from federal general revenues. States will receive administrative costs associated with implementing the $25 add-on.

Foreclosure Scams versus Free Government Help with Foreclosure Problems

Scams preying on homeowners who are faced with the risk of foreclosure on their homes are springing up like weeds. The Office of the Comptroller of the Currency (OCC) of the U. S. Treasury Department has issued a Consumer Advisory (http://www.occ.treas.gov/ftp/ADVISORY/2008-1.html) telling people what to watch out for. The OCC charters, supervises, and regulates national banks. It is in the bank’s interest to help you keep your home if at all possible. But if your bank or the lender who holds your mortgage will not cooperate with you, there are still alternatives. Above all, do not become a victim of a scam.

First and foremost, beware of foreclosure prevention specialists who charge enormous fees to do what homeowners can do for themselves. or what is freely available. Secondly, don’t sign anything without having someone you know well and trust check it over first, preferably a lawyer.

Whether or not your lender helpful, at the minimum, you can call Hope for Homeowners at 888-995-HOPE or go to their Web site for a counseling session at no cost to you. The sooner you call after you realize that you are in trouble, the more options will be open to you. As of March 19, 124,000 homeowners had called that number, which offers assistance 24 hours a day, seven days a week. Or call HUD (Housing and Urban Development department of the Federal Government) at 800-569-4287, or visit the HUD Web site (www.hud.gov/foreclosure).

Details taken from the Consumer Advisory on how to protect yourself from scams and where to get legitimate help follow.

HOW TO FIND LEGITIMATE HELP FOR YOUR FINANCIAL PROBLEMS
Contact your mortgage lender or mortgage servicer as soon as you think you are unable to make your mortgage payment. Lenders are often in the best position to help, especially if you are current on your loan or not seriously late on your payments. Your mortgage lender or mortgage servicer may be able to identify options to help you bring the loan current or to modify your loan.
Contact a legitimate housing or financial counselor to help you work through your financial problems. To find one:
□ Call (800) 569-4287, or visit www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm to find counselors approved by the U.S. Department of Housing and Urban Development (HUD).
□ Call the Homeownership Preservation Foundation at (888) 995-HOPE, or visit http://www.995hope.org/, to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.
Visit the following Web sites for information:
□ NeighborWorks America, www.nw.org/network/home.asp.
□ Federal Trade Commission, www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm.
Finally, if you have a complaint or question involving a national bank and cannot resolve it directly with the bank, contact the OCC’s Customer Assistance Group by calling (800) 613-6743, by e-mailing customer.assistance@occ.treas.gov, or by visiting http://www.helpwithmybank.gov/.

Is it common sense to read legislation before voting on it?

Does it surprise you to learn that our Congressmen frequently vote on bills that they have not read? The Patriot Act was such a bill, and apparently, the American Recovery and Reinvestment Act is another. The Sunlight Foundation is sponsoring a petition to get our Congressmen to pass legislation that would require posting a bill for 72 hours on the Internet before the bill is debated on the floor of Congress. If you would like to sign the petition, go to http://www.readthebill.org/. It is conceivable that if important bills were posted in advance, there are enough of us ordinary citizens who would read the them (perhaps organized into teams that would divide up the reading) that we could end up with an informed citizenry, and if we share our knowledge, even informed representatives. What a concept!

Aid (but not in the form of money) for small businesses

If you are thinking about starting a small business or if you have a business and would like to explore ways of building it and enhancing it, visit the Small Business Administration (SBM) Web site. Although SBM does not offer individual grants (“free money”), it offers something potentially more valuable: counseling, training, and even one-on-one advice. Free online courses, typically 30-minute sessions, on a myriad of subjects are at your fingertips. Moreover, there are SBA offices located in all 50 states and even the territories, and you can look up an office near you on the SBA Web site (http://www.sba.gov/) for more help.

The Service Corp of Retired Executives is an example of a resource affiliated with the SBA. It is worth a visit to SCORE’s Web site (http://www.score.org/) to find out what this organization has to offer. There are SCORE groups all over the country. You may have one in your town or county. Among other things, SCORE volunteers teach classes on many topics related to starting and managing a small business, for example, how and why to create a business plan. These classes are available free of charge or for a nominal fee. Volunteers are also available free of charge for one-on-one counseling.

Getting a fair share of business in the form of contracts from the Federal Government
SBA offers assistance to small businesses in obtaining procurement grants from the Federal Government under the Small Business Act of 1953. The objective is to help small businesses obtain a fair share of contracts and subcontracts for Federal government supplies and services and a fair share of property sold by the government. A brief description of two such programs, 59.006 8 (a) and 59.009 follows. You can find more detail in the Catalog of Federal Domestic Assistance (CFDA). Your local librarian can help you locate the CFDA online, or you find it yourself by entering "CFDA" in a search engine. You can also call your local SBA office for information.

59.006 8(a) is a Business Development Program that fosters business ownership by individuals who are both socially and economically disadvantaged. It gives business development assistance including, but not limited to, management and technical assistance, access to capital and other forms of financial assistance, business training and counseling, and access to sole-source and limited-competition Federal contract opportunities, to help firms achieve competitive viability. Applications are available at SBA district offices and on the SBA home page at http://www.sba.gov/.

59.009, Procurement Assistance to Small Businesses, is intended to help small business in obtaining a fair share of contracts and subcontracts for Federal government supplies and services and a fair share of property sold by the government. As one small part of the implementation of this program, subcontracting plans of large prime contractors are reviewed to determine the extent that they are providing subcontracting opportunities to small veteran-owned, service-disabled veteran-owned, HUBZone-owned, and small disadvantaged and women-owned small businesses. Forms to obtain necessary assistance are provided by SBA field offices.

This is but the “tip of the iceberg” of what could be available to you if you qualify. If you have questions, comments, or requests about any of this, send them to us. You have nothing to lose but a few minutes of your time. You don’t even have to give us your name, although that might help if you want a personal reply.:-)

Photo courtesy of Angela Radelescu

New and Updated Tax Incentives to Help Small Business

Three types of tax incentives are now available to help small business, two incentives are for small business owners, and one incentive is for the population at large. Equipment expensing (originally Section 179 of the Bush stimulus bill in early 2008) has been extended through 2009 and the limit has been increased from $125,000 to $250,000. The deduction is phased out for businesses that spend more than $800,000 on capital expenditures for the year. Investment in vehicles, machinery, and computers is eligible for expensing.

Small business owners can also receive a tax credit for hiring someone who is the target group of traditionally disadvantaged workers, including an unemployed military veteran, a high-school dropout. The Work Opportunity Tax Credit allows an employer to claim a tax credit for 40% of the first $6,000 in wages to a qualifying worker. Two new classes of workers are now eligible: veterans who left the military within the past five years and “disconnected” youths (someone between 16 and 25 who hasn’t attended school or held a job within the past five months).

Finally, anyone who invests in small businesses, holds onto the investments for five years, and then sells at a profit can exclude 75% of the gain (within certain limits), but only for stocks purchased after the bill is enacted.

(From CNNMoney.com, “Stimulus: What’s in it for small biz?” by Stacy Cowley, February 26, 2009)

Photo courtesy of Herzogbr.

Grants and Loans for Small Businesses--Real and Otherwise

Donna Hartley, sole proprietor of Harley International, found Grant Financial Network on the Internet. In return for $2,500, she was promised detailed information on grants and assistance in securing them. Instead of a check, they requested a bank draft, the most difficult kind of payment to dispute, but Hartley is an honest and therefore a trusting person. When she didn’t hear from them and finally called to get her money back, they offered to turn her company into a 501c (3) charitable organization for an additional $6,500. The Better Business Bureau of Las Vegas, where Grant Financial Network was located, rates Grant Financial Network as unsatisfactory. The bureau processed 26 complaints about the company in the last 12 months. Hartley has also lodged a complaint, but she doesn’t expect to see her money anytime soon. (Taken from CNN.Money.com, January 29, 2009, contributed by Kathleen Regan O’Connor).

What help, in fact, does the Federal government offer small business owners? In particular, what will the Recovery Act provide?


The American Recovery and Reinvestment bill provides $730 million to the Small Business Administration (SBA) to help American small businesses. This is mainly in the form of loans and loan guarantees to make up for and to ease the current credit crunch in private lending. Before we go into the details on loans and credit, what about grants? What about free money that doesn’t need to be repaid? This is what I found in the FAQ (Frequently Asked Questions) section of the SBA Web site (http://www.sba.gov/) :

The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance (such as the SBIR/STTR (Small Business Innovation Research/Small Business Technology Transfer) grant programs). These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments. For more information, visit the SBA Grants section.





What Does the Recovery Act Do to Help Small Businesses?

The American Recovery and Reinvestment bill takes a comprehensive approach and attacks several problems facing small businesses at once by reducing fees, guaranteeing a greater share of certain loans, expanding capacity in the Microloan program, providing new stabilizing loans to help small businesses survive during economic hardship, as well as new mechanisms to help unfreeze the secondary markets for SBA-backed loans.
The bill provides $730 million to the SBA. Among the highlights are:

90 Percent Guarantee
The bill allows SBA to raise its loan guarantee from the current levels to as much as 90 percent for some loans. At present, SBA can guarantee loans up to 85 percent on loans up to $150,000, and up to 75 percent on loans greater than $150,000. The 50 percent guarantee on SBA Express loans remains unchanged. Increasing the SBA guarantee percentage encourages lenders to extend more capital to small businesses by increasing the share covered by an SBA guarantee. Temporary fee reductions or eliminations on SBA loans are intended to provide relief to small business owners with SBA loans. $375 million has been allotted for these purposes.
Business Stabilization Loans
The bill provides $225 million to create a new SBA loan program to provide deferred-payment loans of up to $35,000 to viable small businesses that need the money to make payments on an existing, qualifying loan for up to six months. These loans will be 100 percent guaranteed by SBA. Repayment would not have to begin until 12 months after the loan is fully disbursed. These loans will help ensure that small businesses have time to refocus their business plans in order to succeed in the long run.
Microloans
The bill provides $30 million to expand SBA’s Microloan program, which provides small loans (up to $35,000) paired with technical assistance to start-up, newly established or growing small businesses. The bill provides funding to increase loans from SBA to participating microlenders by $50 million through September 30, 2010, and adds $24 million in grants to provide technical assistance to borrowers. Historically, these loans reach low-income individuals, women and minorities in both rural and urban areas. The loans are funneled through non-profit community organizations that vet the applicants and make the loans.
Refinancing
The bill also gives SBA the power to use the 504 Certified Development Company program to refinance existing loans for fixed assets, providing fresh support for small business expansion. This change will help business owners expand their current development projects and create jobs in their communities.
Secondary Market Expansion
The bill authorizes SBA to establish a secondary market for pools of “first lien” loans under the 504 program. These “first lien” loans from commercial lenders currently have no SBA guarantee. The bill authorizes SBA to deploy federal guarantees for pools of these first lien loans, so that they can be sold to investors in a secondary market. Providing liquidity for these first mortgages will help encourage lenders to continue participating in SBA’s 504 loan program, which provides a key source of capital for community development and other projects.

The bill also empowers SBA to set up a Secondary Market Lending Authority that would make direct loans to broker-dealers that participate in the secondary market for SBA-guaranteed 7(a) loans. These broker-dealers would use the funds to purchase SBA-backed loans from commercial lenders, assemble them into pools and sell them to investors in the secondary loan market. This program may help address some of the issues facing the secondary market for SBA loans and may ultimately help SBA lenders make new loans to borrowers.
Investment Program
The bill helps SBA-licensed Small Business Investment Companies (SBICs) and families of SBIC funds better leverage the capital they use to invest in small businesses. The bill sets maximum levels of funding the agency can provide to these companies at up to three times the private capital raised by those companies, or $150 million, whichever is less. It also raises the percentage any one SBIC can invest in a single small business to 10 percent of total capital, and raises from 20 percent to 25 percent the percentage of any licensee’s dollar investments that must be made in “smaller” businesses.
Surety Bonds
The bill provides $15 million to guarantee surety bonds and also raises the maximum contract amount that can be covered by an SBA guaranteed surety bond from $2 million to $5 million, and, under certain circumstances, for contracts amounting to $10 million, and provides additional funds to cover the costs of expanding this program. Small businesses need surety bonds in order to bid on and obtain many federal and other contracts. SBA guarantees surety bonds to small businesses that private surety companies would not otherwise be able to extend.

The information on the funds allocated to the SBA by the Recovery Act was taken from www.sba.gov/news
Release Number 09-10, February 18, 2009
Contact: Mike Stamler (202-205-0919)
Photos courtesy of Svadilfari and ladybugbkt

Almost $8 billion for Weatherization in Stimulus Spending

There is news about weatherization grants.

The federal government on Thursday announced $7.7 billion in funding for weatherization and energy-efficiency programs conducted by states. An initial installment -- about $780 million -- will be released in the next few days.

The weatherization grants will provide up $6,500 to families who earn less than 200 percent of the federal poverty level – or about $44,000 a year for a family of four. [$55,140 for Alaska and $50,720 for Hawaii] This is an increase from previous rules and means that more families will be eligible for help.

You can find information about applying here. Please note that renters are eligible provided they get written permission from their landlords. If you receive Supplemental Security Income or Aid to Families with Dependent Children, you are automatically eligible to receive weatherization services.

The state energy program funding will provide rebates to consumers for home energy audits or other energy saving improvements; development of renewable energy projects for clean electricity generation and alternative fuels; promotion of Energy Star products; efficiency upgrades for state and local government buildings; and other innovative state efforts to help save families money on their energy bills.


Below is a list of the money provided to each state:


Photo Courtesy of Miscelena

Case study: How to get help weatherizing your home

CASE STUDY:

NPR recently reported a case in which Kristann Hartley applied through an online Web site for help from the government to winterize her home. If she had not been suspicious, she could have lost $385 to a scam. Hartley was correct in that there is government help to winterize the homes of eligible people. Here is how to determine whether you are eligible and if so, how to get that government help. (Notice the government does not ask you for any money.)



How Do I Apply for Weatherization?
It is easy to find out if you are eligible and to apply for weatherization. Usually you can do it in a weatherization agency near your home.

Am I Eligible?
As many as 20 to 30 million U.S. families are eligible for weatherization services nationwide. Services are provided by the states, and each state has slightly different criteria. All energy services are handled by local weatherization agencies.
If you receive Supplemental Security Income or Aid to Families with Dependent Children, you are automatically eligible to receive weatherization services. In other cases, states give preference to:
People over 60 years of age
Families with one or more members with a disability
Families with children (in most states).
One of the primary factors affecting eligibility is income. Depending on what state you live in, you are eligible for weatherization if your income falls below the "125% or 150% poverty level" defined in the PDF below. Note, however, that some states use a third alternative to set eligibility if your income is less than 60% of the median income in your state; and minimum incomes for Hawaii and Alaska, respectively, are slightly higher. For details, see DOE guidelines (PDF 80 KB). Download Adobe Reader.
How does the process work?
1. Call local agency
o The states, not DOE, keep up-to-date lists of local weatherization agencies.
o All weatherization services are provided by local agencies.
o Most agencies are nonprofits that employ energy professionals.
o Some are branches of local governments.
2. Come in and apply
o Application form usually takes about 20 minutes
o You must have proof of income for the year prior to application. (For people on fixed incomes, this is usually easy to do).
o The agency also asks a small number of questions about your household, such as, the number of people living in the home.
3. Your eligibility is determined
o If you are eligible, your weatherization agency puts you on a waiting list.
o If you rent, you must get permission from your landlord.
o People most in need are often moved to the top of the waiting list.
4. Professional energy consultation
o Analysis of your energy bills
o Test the infiltration of outside air with a blower door
o Inspect equipment for health and safety
o List the most cost-effective energy conservation measures for your home.
5. Workers arrive
o Local weatherization agency schedules work.
o Average expenditure of $2500 per home
o All work is energy-related. Work does not include new roofing, siding, or similar.
o Work is typically completed in a day or two.
o You sign off on the final inspection.
Do you want to apply immediately?
Select your state from the map on the State Contacts page and get the phone number and address of your state weatherization office.
See http://www.eere.energy.gov/ for more information, including the answers to some frequently asked questions FAQs).

New Warning on Economic Stimulus Scams

The Federal Trade Commission last week issued a new warning on Web sites that advertise their ability to help you get money from the new economic stimulus plan. "Many use deceptive names or images of President Obama and Vice President Biden to suggest they are legitimate. They're not," says Eileen Harrington, Acting Director of the FTC's Bureau of Consumer Protection. "Don't fall for it. If you do, you'll get scammed."

National Public Radio ran a story on Thursday about the increasing number of scams and misinformation associated with the stimulus. The NPR story featured a Ohio woman who had heard that there was government money available to people who weatherized their homes. Kristann Hartley applied online to a Web site uspublicgrantservices.com and less than a week later received a call from a man who claimed to be from the Department of Housing. Hartley became suspicious after the man said she needed to provide a copy of her deed and estimates from contractors and pay an underwriting fee of $385 with a cashier's check.

The truth is there is a tax credit available for energy-efficient home improvements (including weatherizing). The stimulus increased this credit. Tax credits are now available for installing new energy-efficient windows and doors, insulation, roofs and HVAC systems. The credits is will reimburse people for up to 30 percent of their cost up to a limit of $1,500 in 2009 and 2010.

In addition, there are grants for installing geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells in existing homes and in new construction. This credit is available through 2016, but is unclear whether these grants are available to individuals. For more information see section 1603 on page 250 of The American Recovery and Reinvestment Act.

Christina Kielich, an spokeswoman for the Department of Energy, said on Tuesday that these grants are only available to states. She is double checking that information for us.

Legwork surrounding the writing of a grant proposal

Steps for preparing a grant proposal:

If you have an idea that you think deserves support, call the sponsoring agency for a grant application kit. Some program descriptions provide a contact or even a Web site with detailed information on submitting a grant proposal. If the program description doesn't provide a contact, Appendix IV of the CFDA, Agency Regional and Local Office Addresses, is a comprehensive, if somewhat outdated, list.

Before you do any serious writing, it is a good idea to check with your local and state representatives and related agencies to see whether grants have already been awarded for similar work. If your idea is different and better, you can continue. Moreover, you can ask these people if they will recommend your idea in the form of a “letter of support.”Show a written a summary of your proposal to academic, political or professional contacts who might be willing to recommend your proposal in writing in the form of a “letter of support.” Finally, prepare your final submission according to the directions of the agency's application kit. The submission should have a cover letter. It should be submitted by the deadline for this sort of proposal. (The CFDA has a deadline index and each program description has a Deadline Subsection with information deadlines.)

For more detailed instructions on writing a grant proposal see Part Two of Appendix VI of the CFDA.