U.S. to offer low-interest loans to those harmed by red tide

BOSTON – The federal government will offer low-interest loans to shellfishermen and others harmed by the state’s red tide outbreak, Massachusetts Gov. Mitt Romney announced on Tuesday.

“The impact of [red tide] on fisherman, processors and restaurateurs is significant, and it’s calling for a convergence of effort on the part of federal, state and local officials,” Romney said.

The U.S. Small Business Administration will set up shop throughout coastal areas where people affected by the toxic algae bloom could come to apply for the 30-year loans, said Cristine McCombs, director of the Massachusetts Emergency Management Agency.

As for Maine, a spokesman for Sen. Olympia Snowe, R-Maine, said he would expect the SBA to offer low-interest loans to clam diggers and others affected by the red tide soon, possibly this week.

“We are confident that SBA will provide the same kinds of loans in Maine that they’re providing in Massachusetts and New Hampshire,” said Preston Hartman.

Sen. Edward Kennedy, D-Mass., praised the SBA for its decision.

“The red tide has caused sudden, severe hardship for our shellfishing industry, and these low-interest loans will help our fisherman survive the shutdown and the burden it’s imposed,” Kennedy said in a statement.

The state is also seeking disaster aid from the Federal Emergency Management Agency. That request, which must be approved by President Bush, is pending. Romney says Massachusetts is also looking to the U.S. Department of Commerce for assistance.

The toxic algae bloom off the coast has shut down most of the state’s shellfish industry.

Maine Gov. John Baldacci last week declared an economic emergency in Maine as a result of the red tide outbreak. Administration officials are expected to file an official disaster proclamation on Wednesday with federal officials with the goal of freeing up SBA loans.

“We’re putting the paperwork together that we hope will complete the steps that will allow the Small Business Administration to aid those that have been affected by this red tide outbreak,” said Baldacci spokesman Lynn Kippax.