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e. Actual Reasonable Expenses in Searching for a Replacement Business. (1) The owner of a displaced business may be re- imbursed for the actual reasonable expenses in searching for a replacement business, not to exceed $500. Such expenses may include transportation expenses, meals, lodging away from home, and the reasonable value of time actually spent in search, including the fees of real estate agents or real estate brokers. In exceptional cases, and with prior approval of the appropriate FAA official, an amount greater than $500 may be authorized when circumstances so require. (a) All expenses claimed except value of time actually spent in search must be supported by receipted bills. (b) Payment for time actually spent in search shall be based on the applica- ble hourly wage rate for the person(s) conducting the search, but will not exceed $10 per hour. A certified state- ment of the time spent in search and hourly wage rate (s) shall accompany the claim. 74. FIXED ALLOWANCE IN LIEU OF MOVING AND RELATED EXPENSES. In lieu of moving and related expense payments, an owner of a discontinued or relocated business is eligible to receive a payment equal to the average annual net earnings of the business except that such payment shall not be less than $2,500, nor more than $10,000, providing the following requirements are met: a. Sponsor Determination. For the owner of a business to be entitled to this payment, the Sponsor will determine that: (1) The business cannot be relocated without a substantial loss of its existing patronage. Such determination should be made by the Spon- sor only after consideration will be given to the following: (a) An anticipated significant loss of pres- ent clientele of the displaced business. (b) A significant loss of net income as de- termined by comparing the estimated net income of the business for the 12- month period after relocation with the net annual income of the business dur- ing the two taxable years immediately preceding the actual displacement. Some of the situations to take into consideration that may create a sig- nificant loss of net income are: 1. The displaced business occupied rented quarters and the only re- placement sites are for sale but not within the financial capabil- ities of the displaced business. The same situation could occur even though the original busi- ness quarters were owned. 2. Substantial additional expense for the move which may not be compensable such as down time during the move, the need to borrow additional capital, the inability of the business owner to secure additional financing, the need to use other business resources for a new plant, and any other related costs of this nature. 3. The business may be located in an area of low rentals which permits the owner of a small low -volume business to be com- petitive with his larger competi- tors. If the business is required to relocate into a higher rental area, it could incur a substantial loss of customers due to a nec- essary increase in prices to meet his increased operating costs. 4. The type of business conducted by the displaced person. 5. The nature of the clientele of the displaced business. 6. The relative importance of the present and proposed location to the displaced business and the availability of a suitable replace- ment location for the displaced person. This is most evident in those instances where the dis- placed owner is either elderly, ill or handicapped. There are many situations, particularly in older neighborhoods, where the owner lives next door or within the same building as his business. A replacement location may not be suitable for these particular 47