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STAR FISHERIES 



TWENTY SEVEN HARBOR LOOP 



GLOUCESTER. MA O I Q30 



SOa-2S3-069b 



Fax 506283-3765 



July 9, 1996 



Committee on Small Business 

 c/o Ms. Laurie Rains 

 Rayburn House Office Building 

 Room B363 

 Washington, DC. 20515 



Dear Committee Members: 



As President of two small family-owned businesses, Star Fisheries and the Gloucester Display 

 Auction, I am writing to express my concern regarding federal regulation affecting the fishing industry 

 in the Commonwealth of Massachusetts These regulations, including Amendments 5 and 7 to the 

 Northeast Fishery Management Plan, have attempted to protect fishing stocks by, among other things, 

 limiting the number of days boats may fish These measures have dramatically and negatively 

 impacted the entire fishing industry. 



Small businesses are especially vulnerable to sudden changes in the marketplace created by federal 

 regulation, as they do not possess the economic strength to withstand losses while adapting Federal 

 regulation must now recognize and incorporate policies which will provide assistance to small 

 business in order to ensure the long-term viability of the fishing industry. For example, federal loan 

 assistance and the availability of low interest loans would provide stability while allowing small 

 business to adjust to the new economic environment. 



Over the past 70 years, three generations of my family have made a living in the fishing industry 

 During hard times the family sought to diversify its operations and the company currently includes 

 a retail fish market as well as a small restaurant. To further adapt to the changing times, the company 

 has embarked upon a major initiative to develop an electronic display auction in Gloucester modeled 

 after the successful auction in Portland, Maine The company also plans to enter global markets by 

 becoming a processor of hemng through the Gloucester Herring Corporation Both projects will 

 significantly add to the local economy through employment and income 



Currently, these promising initiatives are delayed due to a lack of start-up capital. Commercial 

 lending banks are reluctant to lend money to fishing businesses Thus lack of traditional financing 

 methods underscores the significance of federal loans in assisting small business to overcome industry 

 downturns and maintain profitability Without immediate federal action to encourage entrepaneurship 



