11 



ing organized in the South Atlantic. Floods are often a combination 

 of heavy rainfall and melting snow. 



Similarly, the fishing situation has developed overtime. The ef- 

 fect of warming water, depletion by predators, and other natural 

 events is, in fact, no different from the developmental stages of a 

 hurricane or a flood. After monitoring the development of a hurri- 

 cane, it makes landfall. After watching the rivers rise, a flood oc- 

 curs. After watching the gradual fishing situation progress, the 

 fishing grounds were suddenly closed and other restrictions im- 

 posed just as sudden as the landfall of a hurricane or flood. 



The Massachusetts ground fishing industry has unmet emer- 

 gency needs that require financial assistance from the Federal Gov- 

 ernment. The Commonwealth of Massachusetts has clearly recog- 

 nized the need for the fishing industry to diversify and has commit- 

 ted untold resources to said effort: Vessel refitting, loan programs, 

 crisis counseling, retraining programs, and the like. 



This is not enough. The fishermen need your help, and the SBA 

 assistance would provide emergency working capital, enabling the 

 fishermen the opportunity to transition into new markets and miti- 

 gate against future losses. 



The needs of the fishermen identified to date will only grow if 

 left untreated. We must take steps today to mitigate against such 

 and support the diversification efforts currently under way. 



In conclusion, we must acknowledge that the disaster now con- 

 fronting the fishermen in Massachusetts is both natural and sud- 

 den. I urge this Subcommittee to intervene on behalf of the fisher- 

 men and request that SBA reconsider its position and provide loans 

 to these disaster victims. 



I thank you, Mr. Chairman, for the opportunity to share our con- 

 cerns. 



[Mr. Heanue's statement may be found in the appendix.] 



Chairman Torkildsen. Thank you, Ms. Heanue. 



At this time I would like to ask Congressman Jesse Jackson, 

 Junior, who has just joined us, would you like to make an opening 

 statement? 



Mr. Jackson. Let me thank you, Mr. Chairman, for the oppor- 

 tunity to address the issue of application of Small Business Admin- 

 istration disaster relief assistance. 



Since 1953, SBA's disaster loans have provided dramatic assist- 

 ance in the form of direct loans to people in need. After California's 

 Northridge earthquake, the SBA approved over 125,000 loans total- 

 ing over $4.1 billion. In its 43 years, 1,274,000 loans for more than 

 $22.4 billion have helped Americans recover from hurricanes, 

 floods, earthquakes, and other disasters. 



Mr. Chairman, I certainly know how devastating economic condi- 

 tions can hurt a region's ability to be self-sufficient. The Southside 

 of Chicago and the south suburbs have seen more than their fair 

 share of missed economic opportunities. 



I know that later today the full Small Business Committee will 

 mark up H.R. 3719, which would remove any cap on the interest 

 rates on SBA disaster relief loans. Thus, even these direct loans 

 will become more costly for disaster victims. So, it is appropriate 

 that we take time to discuss what forms of coordinated assistance 

 are available or needed to help communities as they try to recover. 



