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Good morning, Mr. Chairman. I am Bernard Kulik, Associate Administrator for Disaster 

 Assistance of the Small Business Administration (SB A) and I want to thank you for inviting the 

 SBA to testify here today concerning the Commonwealth of Massachusetts' request for disaster 

 funds from SBA. You asked that our testimony focus on the recent decision to decline to issue a 

 disaster declaration for the Massachusetts fishing industry and we are pleased to comply. 



As you know, in March 1995 Governor Weld made a request to the Federal Emergency 

 Management Agency (FEMA) for a Presidential declaration of a major disaster for the 

 Massachusetts fishing industry. That request was declined in July 1995 and again, on appeal, in 

 December 1995. By letter dated April 30, 1996, which was received by the SBA on May 20, 

 1996, Governor Weld requested an Economic Injury Disaster Declaration on behalf of the 

 fishermen in three Massachusetts counties pursuant to Section 7(b)(2)(D) of the Small Business 

 Act. Administrator Philip Lader declined to issue the declaration and Governor Weld was so 

 notified by letter dated June 3, 1996. 



SBA disaster assistance in the form of long term, low interest loans, as relevant to this issue, are 

 available only upon the declaration of a Major Disaster by the President pursuant to the Stafford 

 Act or the declaration of a disaster by the Administrator pursuant to the Small Business Act. In 

 the latter context, a disaster is defined in Section 3(k) of the Act as follows: 



...the term "disaster" means a sudden event which causes severe damage including, 



but not limited to, floods, hurricanes, tornadoes, earthquakes, fires, explosions, volcanoes, 



windstorms, landslides or mudslides, tidal waves, ocean conditions resulting in the closure 



