already overburdened with debt. In those cases, more debt is not 

 the answer. But even where more debt is possible, SBA's existing 

 programs, while well-intentioned, have been of little use thus far. 

 No matter how much our fishermen have wrestled with SBA loan 

 programs to make them part or all of the solution, it has been a 

 vain effort. 



It is against this background that I welcome Governor Weld's ini- 

 tiative in seeking an economic injury disaster declaration from 

 SBA. 



The Governor's request captured two realities that I would like 

 to emphasis. First, fishing boats are hurting in the aftermath of 

 Amendments 5 and 7. Please remember, each fishing boat is a 

 small business. 



Second, run-of-the-mill SBA Programs were not doing the trick. 

 Something more was needed. SBA's response? A denial of the Gov- 

 ernor's request based on narrow legalistic interpretations of statu- 

 tory definitions. 



I feel, as mayor, sometimes I am in the business of sales. Try to 

 sell this explanation to fishermen struggling to hold on. "There is 

 no doubt that the fishing industry in Massachusetts is hurting as 

 a result of the closure of their usual fishing grounds. However, that 

 event is not a disaster within the statutory definition." Mr. Chair- 

 man, they don't buy it, I don't buy it, and neither should you. 



I am a lawyer by training and trade, and I have practiced in the 

 public sector, so I know at least one thing: It is always easy to find 

 a way to say no. But that is what SBA did. Once again, the SBA 

 was unable to find a way to do what needs to be done, give relief 

 to fishermen living with economic disaster due to Federal regula- 

 tions. 



Faced with this dilemma, what do I ask of you? First, that you 

 prevail upon the SBA to reverse itself and provide the subsidized 

 loan assistance that can keep some of our struggling fishermen 

 afloat. I ask that as mayor of a city that has already done its share 

 and will do more. 



In Gloucester we have run Economic Development Administra- 

 tion grants through local revolving funds set up specifically to le- 

 verage funding for a number of valuable shore-side and vessel in- 

 vestment opportunities. We have even put the city's own money on 

 the line, using funds we borrowed, secured by HUD Section 108 

 loan guarantees, to provide more fisheries financial assistance. 



What then is my second request? If the SBA will not reverse it- 

 self, then I ask you, very simply, take this program away from 

 them and give it and the money that funds it to a Federal Agency 

 that will give help to our fishermen. The disaster SBA will not ac- 

 knowledge is too far along. We have no more time for the bureau- 

 cratically faint of heart. 



I hope these observations help you in the work you are in the 

 midst of. We appreciate that work in Gloucester and are particu- 

 larly heartened by the news of the amendment you are offering 

 now through the markup process. More power to you with it. 



Always bear in mind, the city of Gloucester stands ready to work 

 with you in your efforts to restore the health and economic vitality 

 of our domestic fisheries. 



Thank you again for this chance to be heard, sir. 



