[Congressional Record Volume 148, Number 105 (Monday, July 29, 2002)]
[Extensions of Remarks]
[Page E1429]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           INTRODUCING THE SMALL BUSINESS DROUGHT RELIEF ACT

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                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                         Friday, July 26, 2002

  Mr. HASTINGS of Florida. Mr. Speaker, I rise today to introduce the 
Small Business Drought Relief Act. This legislation provides small 
businesses who depend upon water supply as a means of income with the 
opportunity to qualify and apply for disaster assistance from the Small 
Business Administration when drought affects their ability to earn 
income. It serves as a companion bill to a similar bill introduced in 
the Senate.
  Under current law, small businesses whose income depreciates as a 
result of diminishing water supply are unable to even apply for SBA 
loans. Often these businesses are family-owned and family-run 
recreational or commercial fishing firms. The majority of them are 
dependent upon water resources, whether lakes, streams, or rivers, for 
the ability to operate their businesses. When water levels drop to 
unbearable points, aside from the obvious water supply issues, boats 
are unable to make it into lakes and rivers, commercial fishing ceases 
to exist, and businesses often lay off workers and close their doors 
for good.
  I became interested in drought relief last summer when Florida found 
itself in the most prolonged drought it had seen in nearly 20 years. 
The water level in Lake Okeechobee, our country's 2nd largest fresh 
water lake, and located in my District, had decreased by nearly 25 
percent.
  Not only did the water shortage in the lake cause problems for 
agriculture and water management, but it also destroyed the economic 
well being of small businesses around the Lake who depend on it for 
income. Realize this too, the clear majority of these businesses are 
owned by minorities or families who struggle every day just to get by.
  As I began to try and help the towns and businesses surrounding the 
Lake in locating temporary assistance, even if it was only low interest 
loans, I found that unless a firm was involved in agriculture, 
assistance is virtually impossible. When it is possible, the 
bureaucratic red tape applicants must cut through are so discouraging 
that they don't even try.
  The issue at hand, Mr. Speaker, is that droughts are major natural 
disasters. The Stafford Act says it is, as well as the U.S. Departments 
of Agriculture, Commerce, and Defense also say it is. Congress said it 
as recently as 1998. But for some reason, the Small Business Act does 
not include drought in its definition of disaster. Frankly, this 
oversight is a disaster of its own.
  Today, Mr. Speaker, I am introducing a bill which will reconcile the 
oversight made by our body's predecessors and ensure that businesses 
who suffer from drought will live to see another day. I urge my 
colleagues to support this bill, and I urge the leadership to bring it 
swiftly to the floor for a vote.




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