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Week Ending July 1, 2005

S 1316 A bill to authorize the Small Business Administration to provide emergency relief to shellfish growers affected by toxic red tide losses.

BRIEF

   The bill finds that New England shellfish farmers have suffered, from time to time since 1972, financial damages up to $3 million weekly due to a toxic micro-algae commonly called Red Tide algae. A recent Red Tide infestation has emphasized the impact of the algae on the shellfish business.

   The algae, not damaging to the clam or oyster but poisonous and even life threatening to humans and animals who eat the shellfish, has forced extended closing of shellfish beds.

   Qualifying as a small business, aquaculturists never-the-less are prohibited from receiving small business emergency funds to help them survive the losses.

   The bill, although not providing funds for shellfish growers, would change the Small Business Administration law qualifying them for financial support during times when the Red Tide impacts shellfish sales. Shellfish growers do qualify for emergency loans though the Farm Service Agency of the USDA, the bill ‘findings’ note, but circumstances that qualify for the funds are limited.

Sponsor: Senator Olympia J. Snowe (R-ME)

Vote: Passed Senate by Unanimous Consent (June 26, 2005)

Cost to the taxpayers: No discernible cost yet.

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