On June 3, 1996, the Governor received correspondence from the 

 Associate Administrator for Disaster Assistance, Mr. Bernard 

 Kulik, stating that the request for disaster assistance had been de- 

 nied. Mr. Kulik admitted that the Massachusetts fishing industry 

 was hurting as a result of the closure of the usual fishing grounds. 

 Yet the letter went on to state that overfishing is not a "sudden 

 event" as defined under the statute and the specific event cited as 

 the basis for the request, Federal or governmental action, was re- 

 pealed several years earlier, therefore not justifying the request for 

 assistance. 



The Governor and I share a deep concern for the well-being of 

 the fishing communities that are so seriously affected by this ac- 

 tion. It seems ludicrous that the same Federal Government bu- 

 reaucracy that contributed to this dire situation would now decline 

 to offer a helping hand to those harmed. 



In an attempt to remedy the situation, during the Small Busi- 

 ness Committee's markup this afternoon, I plan to offer an amend- 

 ment that will make an addition to the definition of "disaster." My 

 amendment will propose that we include Federal or governmental 

 action included in the definition of that law. 



The Subcommittee is holding this hearing today to review the 

 Governor's request and to hear from the SBA on their ruling. We 

 look forward to hearing from our witnesses today. 



As soon as the Ranking Minority Member joins us for the hear- 

 ing, I will yield to him for an opening statement, if he chooses to 

 make one. 



Now we will proceed directly to our first panel of witnesses. They 

 are Bernard Kulik, Associate Administrator for Disaster Assist- 

 ance, from the U.S. Small Business Administration; Ms. Trudy Cox, 

 Environmental Affairs Secretary for the Commonwealth of Massa- 

 chusetts; State Senator Bruce Tarr; Mayor Bruce Tobey from the 

 city of Gloucester; and Cristine Heanue, Disaster Recovery Man- 

 ager for Massachusetts Emergency Management Agency, or 

 MEMA, as it is known, located in Framingham, Mass. 



I would like to ask Mr. Kulik to begin with his testimony. For 

 all witnesses, if you could summarize your testimony, your written 

 statement will appear in its entirety in the record. If you can sum- 

 marize to within 5 minutes, that will allow time for questions and 

 also allow comment from other witnesses who bring a particular 

 expertise to this hearing. 



Mr. Kulik. 



TESTIMONY OF BERNARD KULIK, ASSOCIATE ADMINIS- 

 TRATOR FOR DISASTER ASSISTANCE, U.S. SMALL BUSINESS 

 ADMINISTRATION 



Mr. Kulik. Thank you, Mr. Chairman. I certainly will try to keep 

 within the time limit. 



As you know, the request was made from the Governor by letter 

 dated April 30, which was received by SBA on May 20, 1996. Ad- 

 ministrator Lader declined to issue the declaration, and Governor 

 Weld was so notified by letter dated June 3. 



SBA disaster assistance, which is in the form of long-term low 

 interest loans, are only available upon the declaration of a major 

 disaster by the President pursuant to the Stafford Act or the dec- 



