57 



Therefore, there is no doubt that the fishing industry in Massachusetts was hurt by the closure of 

 their usual fishing grounds as a result of over fishing. However, the economic suffering is not the 

 consequence of a "sudden" event and is therefore not a disaster within the statutory definition. 



In past years, the statute had contained two specific provisions for nonphysical disasters that 

 would have covered this particular occurrence. The first of these provided for economic injury 

 assistance in the event of "economic dislocation." This provision was repealed by the Congress in 

 1981 The second provided for economic injury assistance resulting from injury caused by 

 Federal government action. This provision was repealed by the Congress in 1986. The latter 

 provision, and perhaps the former as well, clearly would have covered the present situation. 



Even if the definition of disaster had been met, it is doubtful that the federally subsidized 

 economic injury loan program would have been of much help in this situation for two reasons. 

 First, economic injury disaster loans (EIDL) are limited loans whose purpose is to help a small 

 business survive through a disaster period until it can resume normal operations. EIDLs are 

 working capital loans; they cover the ordinary and necessary expenses that the small business 

 would have met but cannot meet as a result of the disaster. In order to make an EIDL, we must 

 find a reasonable assurance of repayment from the operations of the business. Considering the 

 financial condition of many of these businesses, and the indications that it will take many years for 

 the groundfish stocks to recover, repayment ability may be questionable in this segment of the 

 industry. 



