Local businesses that suffered financial losses due to the closure of the 2010 salmon season can apply for low-interest loans from the U.S. Small Business Administration.
The announcement came Thursday, two days before the 2011 salmon season is to open.
The agency is offering working capital loans of up to $2 million at 4 percent interest with terms up to 30 years.
The agency’s administrator, Karen Mills, declared the disaster after receiving a March 25 request from Mike Dayton, acting secretary of the California Emergency Management Agency.
It’s not clear what prompted Dayton to make the request now. A disaster declaration had been expected in September after last year’s season was abbreviated and disappointing after a two-year closure.
The Small Business Administration plans to staff an outreach office from 1 to 5 p.m. Mondays at the Santa Cruz Harbor public meeting room, 365 A Lake Ave., from April 4 to 18. Similar offices will open at nine other coastal locations in the state.
Applications must be filed by Jan. 3.
Those eligible include salmon charter boat owners, suppliers of fishing gear and fuel, docks, boat yards, processors, wholesalers, shippers and retailers. The money can be used to pay fixed debts, payroll or accounts payable.
Nonprofits are eligible for loans at 3 percent.
“Some affected businesses may be reluctant to seek a loan to meet their immediate financial needs, but we encourage each business to learn how an SBA disaster loan can help them recover from the closure of the 2010 fishery season,” said Alfred Judd, director of agency’s western disaster field operations center.
The salmon season, which typically runs April through September, has been the most lucrative time of year for some businesses at the harbor, but last year’s commercial season was cut back to two four-day periods in July.
Only a few dozen salmon were caught in Monterey Bay, by some estimates, while Fish and Game officials said recreational anglers statewide caught 12,400 chinook, less than in past. Fish were found in deeper-than-usual water and in warmer currents farther offshore, requiring more effort to net.
For some, though, a loan was not a lure.
Bayside Marine, which sells fishing gear and sponsors monthly salmon derbies, is not likely to apply.
“I don’t see a 4 percent loan as useful,” said owner Todd Fraser.
“We’re OK, we have insurance,” said a representative with Captain Jimmy Charters.
Economic disaster loans
WHATs: 4 percent interest for businesses affected by 2010 California salmon season closure.
WHEN: 1-5 p.m. Mondays, April 4, 11 and 18.
WHERE: Harbor meeting room, 364A Lake Ave., Santa Cruz.
INFORMATION: U.S. Small Business Administration, 800-659-2955 or email disastercustomerservice@sba.gov.
