Senate Passes Drought Assistance

Levin Amendment Extends Assistance to Great Lakes Small Businesses

WASHINGTON – Marina owners, charter fishing operators and other small businesses that depend on the Great Lakes and other waterways for their livelihood are on track to be eligible for emergency financial assistance thanks to legislation passed by the Senate this week. The Small Business Drought Relief Act of 2003 would expand the list of small businesses eligible for low interest economic injury disaster loans because of drought. Sen. Carl Levin, D-Mich., added an amendment to ensure that small businesses hurt by low water levels in the Great Lakes and Lake St. Clair are also eligible for emergency assistance.

The legislation seeks equal treatment from the Small Business Administration (SBA) for all small businesses suffering economic injury as a result of drought. Currently, farm-related small businesses hurt by drought are eligible for SBA disaster loans but other small businesses also hurt by drought are not. The Senate bill requires that all small businesses in declared disaster areas be treated equally.

"This is a simple matter of fairness," said Levin. "These small businesses have suffered from alarmingly low water levels in the Great Lakes because of drought. They need and deserve low interest disaster loans to help them to stay in business."

The Levin amendment included small businesses that have suffered economic injury as a result of low water levels in the Great Lakes in the definition of small businesses eligible for SBA's economic injury disaster loans. For example, SBA low interest disaster loans could help marina owners finance the expensive and unexpected costs of dredging needed to return draft in channels to pre-low water levels. Small Business Administration loans would allow the marina operator to spread the cost of dredging over the expected life of the benefit.

"Providing relief to these small businesses in their efforts to keep water access open also provides effective relief to the larger recreational boating industry," Levin continued. "As long as boaters have access to the Lakes, they will continue to patronize related small businesses such as bait and tackle shops."

Levin is a member of the Committee on Small Business and Entrepreneurship.