Feinberg Outlines Reimbursement Process For Gulf Coast Victims

Kenneth Feinberg, the administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund, outlined the process for reimbursing business owners hit hard by the oil spill in the Gulf Coast during his testimony Wednesday before the House Small Business Committee.

Mr. Feinberg said there are two important prerequisites for securing compensation through the fund.

“One, is the claim eligible, is it even appropriate to file a claim.  Even if you have an eligible claim, corroborate it.  You have to corroborate your claim.  You can’t come in and say ‘I’m out of work,’ ‘I’m losing $5 thousand a month, pay me.’  Show me you are out of work,” said Feinberg.

Rep. Vern Buchanan (R-Fla.) asked what can be done for motel and restaurant owners who live in his district, where no tar balls have rolled up on the beaches, but because of perception tourism is down 50 percent.

“This is a very tough issue, I mean there is not enough money in the world to pay every single small business that claims injury no matter where or when,” Feinberg responded.

Feinberg will draw from $20 billion escrow fund established this month to offer small businesses long-term lump sum payments instead of month-to-month emergency payments. There are currently 35 claims locations located in the Gulf Coast Region. Claims can also be filed online.

“I welcome and urge all eligible claimants to file a claim with this facility that has been established under my direction,” Feinburg said. “Anybody, any private individual, or company who feels that they have a valid claim to draw out of this facility, should file a claim.” 

More BlackBerries for U.S. veterans

The Department of Veterans Affairs (VA) is opening its eyes and ears to small businesses and new technology. Frederick Downs, Jr., chief prosthetics and clinical logistics officer in the VA Office of Prosthetics and Clinical Logistics, discussed the new VA developments at a House Small Business Committee hearing.

According to Downs, in 2007, VA provided prosthetic services to more than 1,606,000 veteran patients. 97 percent of prosthetic and orthotic devices for veterans are provided by independent contractors, Downs said. In 2007, together with the VA laboratories, the contract prosthetic labs provided limbs or repairs to 11,023 veterans with amputations at a cost of more than $61,470,000. The VA is not like Walter Reed Army Medical Center, where patients sometimes end up using their own money for co-payments; the VA pays covers all patient costs, Downs said.

To maintain standards, each contractor lab must be certified by the American Board for Certification of Orthotics, Prosthetics, and Pedorthics (ABC), or the Board for Orthotist/Prosthetist Certification (BOC). Rep. Joe Sestak (D-Pa.) said that there should be a single set of criteria for these companies to meet, not two different accrediting bodies like the ABC and BOC.

Accordings to Downs, the VA is building a closer relationship with the private sector. It holds an annual conference where small businesses can market their scientific presentations and products. Also, the VA, along with the Department of Defense (DoD), is giving new technology to veterans, such as personal digital assistants (PDAs), which allow VA prosthetics staff to assist veterans with repairs even if the veterans have been moved across the country. This is particularly helpful because the DoD and VA records do not transfer electronically, Downs said. Also, the VA’s website now has 300,000 hits.

Economic woes remedied by green technology

Representatives from leading renewable technology companies and small businesses appeared before the House Small Business Committee to discuss the role of green technologies in spurring economic growth, particularly for small firms that are developing and using green, renewable practices.

Gregory Wetstone, senior director of government and public affairs for the American Wind Energy Association stated that nearly 35% of the nation’s new electrical capacity in 2007 came from wind energy, and the numbers are growing. Wetstone also said that America provides one of the best opportunities to harness wind energy. In addition, he said that turbine production plants help the economy by relying on nearly 400 sub-suppliers, many of which are small businesses.

Speaking on behalf of the Plumbing-Heating-Cooling Contrators Association, Kevin Tindall stated that if only one in 10 homes installed water-efficient fixtures it could save more than 300 billion gallons of water and save nearly $2 billion annually in energy costs. Upgrading to these technologies also creates a strong demand for employees that are knowledgeable about energy-efficient products and necessary education programs.

However, Rep. Joe Sestak (D-Pa) expressed concern over the cost of green technology. Andrea Lucke, vice president of sales and design for Robert Lucke Homes in Ohio stated that the average buyer stays in their home for only 7 years. This is not long enough to make the purchase of green technologies like solar panels feasible for homeowners. Members of the panel urged the committee to increase and continue federal incentive programs for such technology to combat this issue.