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Mr. Chairman, Members of the Subcommittee and distinguished guests I thank you for the invitation and 

 opportunity to testify before you today My name is Cristine Heanue and I am here today representing 

 the Massachusetts Emergency Management Agency (MEMA), to seek your committee's support for the 

 Commonwealth's request to the Small Business Administration (SBA) for an Economic Injury Disaster 

 Declaration on behalf of the Massachusetts Fishermen in the Counties of Essex, Bristol and Barnstable. 



The Massachusetts Emergency Management Agency conducted a survey of businesses in the 

 aforementioned counties, the results of which concluded that numerous businesses, particularly the fishing 

 industry, suffered severe economic losses and thus require Federal Financial Assistance. Often disaster 

 victims turn to the Federal government seeking grants to assist in their recovery efforts. The fishing 

 communities of Essex, Bristol and Barnstable counties seek only loans provided by the Small Business 

 Administration. 



To address the needs of the Massachusetts ground fishermen the Commonwealth of Massachusetts first 

 sought Federal assistance, through the Federal Emergency Management Agency, with a request dated 

 March 29, 1995. Said request sought assistance in the form of a major disaster declaration for the 

 impacted counties of Essex, Bristol and Barnstable. The request was denied by FEMA, appealed by the 

 Governor and denied yet again. It is interesting to note however that in a letter to Governor Weld dated 

 December 8, 1995, FEMA Director James Lee Witt stated that "the information provided in your appeal 

 supported the logic that a combination of natural factors, including predation, competition and general 

 warning trend in water temperature, aggravated the decline of groundfish stocks..." "We do not dispute 

 that these natural factors have aggravated poor fishing conditions." 



On April 30, 1996 on behalf of the Massachusetts Fishermen, the Commonwealth requested assistance 

 from the Small Business Administration, specifically an Economic Injury Disaster Declaration. Said 

 request was denied. In part, the denial was based on the fact that according to SBA Administrator Philip 

 Lader our request did not support this particular situation being characterized a disaster within the 

 statutory definition of such. In our opinion, ample supporting information has previously been provided 

 to validate the position that this disaster is in fact a natural disaster We similarly conclude that this 

 disaster is in fact a "sudden" natural disaster 



