Saving Seafood

Bipartisan Small Business Task Force Unveils Final $377 Billion Emergency Coronavirus Relief Package

March 25, 2020 — The following was released by the Office of Sen. Marco Rubio (R-Fla.):

The Keeping American Workers Paid and Employed Act would provide $377 billion to help prevent workers from losing their jobs and small businesses from going under due to economic losses caused by the COVID-19 pandemic. The Paycheck Protection Program would provide 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during this emergency. If the employer maintains its payroll, then the portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven, which would help workers to remain employed and affected small businesses and our economy to recover quickly from this crisis. This proposal would be retroactive to February 15, 2020 to help bring workers who may have already been laid off back onto payrolls.

Paycheck Protecton Program

  • The bill would provide $350 billion to support loans through a new Paycheck Protection Program for:
    • Small employers with 500 employees or fewer, as well as those that meet the current Small Business Administration (SBA) size standards;
    • Self-employed individuals and “gig economy” individuals; and
    • Certain nonprofits, including 501(c)(3) organizations and 501(c)(19) veteran organizations, and tribal business concerns with under 500 employees.
  • The size of the loans would equal 250 percent of an employer’s average monthly payroll. The maximum loan amount would be $10 million.
  • Covered payroll costs include salary, wages, and payment of cash tips (up to an annual rate of pay of $100,000); employee group health care benefits, including insurance premiums; retirement contributions; and covered leave.
  • The cost of participation in the program would be reduced for both borrowers and lenders by providing fee waivers, an automatic deferment of payments for one year, and no prepayment penalties.
  • Loans would be available immediately through more than 800 existing SBA-certified lenders, including banks, credit unions, and other financial institutions, and SBA would be required to streamline the process to bring additional lenders into the program.
  • The Treasury Secretary would be authorized to expedite the addition of new lenders and make further enhancements to quickly expedite delivery of capital to small employers.
  • The maximum loan amount for SBA Express loans would be increased from $350,000 to $1 million. Express loans provide borrowers with revolving lines of credit for working capital purposes.

Entreprenurial Assistance

  • The bill would provide $265 million for grants to SBA resource partners, including Small Business Development Centers and Women’s Business Centers, to offer counseling, training, and related assistance to small businesses affected by COVID-19.
  • $10 million would be provided for the Minority Business Development Agency to provide these services through Minority Business Centers and Minority Chambers of Commerce.

Emergency EIDL Grants

  • The bill would expand eligibility for entities suffering economic harm due to COVID-19 to access SBA’s Economic Injury Disaster Loans (EIDL), while also giving SBA more flexibility to process and disperse small dollar loans.
  • The bill would allow businesses that apply for an EIDL expedited access to capital through an Emergency Grant—an advance of $10,000 within three days to maintain payroll, provide paid sick leave, and to service other debt obligations.
  • $10 billion would be provided to support the expanded EIDL program.

Small Business Debt Relief

  • The bill would require SBA to pay all principal, interest, and fees on all existing SBA loan products, including 7(a), Community Advantage, 504, and Microloan programs, for six months to provide relief to small businesses negatively affected by COVID-19.
  • $17 billion would be provided to implement this section.

Read the announcement here

Congressman Keating’s Letter to Congressional Leadership

March 25, 2020 — The Office of Congressman Bill Keating (D-Mass.):

On Monday, March 23, Congressman Bill Keating and other Members of Congress sent a letter to Congressional Leadership asking for fisheries aid during the coronavirus pandemic. The text of the letter can be found below:

Dear Speaker Pelosi and Leader McCarthy,

We are writing to you today to request that additional direct relief be included in Phase 3 or any future COVID-19 relief package for America’s domestic fisheries. In particular, we are asking that $1.5 billion dollars in direct aid be made available to all participants in the seafood industry including, but not limited to, domestic harvesters, processors, distributors, and aquaculture businesses across the country.

Domestic fisheries in the United States support more than 1.2 million jobs and generate $64 billion dollars of economic activity annually. Due to the COVID-19 outbreak fisheries in the United States are facing an unprecedented breakdown in the market for their products. Americans overwhelmingly purchase domestic seafood products, nearly 70 percent, at restaurant and hospitality establishments. In nearly every state, steps taken by government and citizens to prevent the transmission of the disease has focused on the closure of many of these establishments. This has left the American seafood industry unable to find a market for their products a time when the COVID-19 pandemic has also eliminated any avenue exports. The situation within American Fisheries is dire, and the harm being inflicted will undermine the longterm health of a sustainable industry.

Additionally, we urge the federal government consider any production support measures that may become available for fisheries. Government agencies, such as the Department of Defense, purchase significant volumes of agricultural goods on a monthly basis. As such, we request that the federal government use its purchasing power now to support sustainable fisheries across the nation by altering its purchasing profile to include increased amounts of sustainably harvested domestic seafood.

Read the full letter here

US seafood industry hopes for help from USD 2 trillion stimulus package

March 25, 2020 — The United States Congress is nearing finalization of a third COVID-19 stimulus bill totaling up to USD 2 trillion (EUR 1.85 trillion) in across-the-board relief.

The U.S. Senate is expected to vote on the package on the afternoon of Wednesday, 25 March, and the House of Representatives – currently in recess – is expected to reconvene for its own vote “as soon as possible,” House Speaker Nancy Pelosi (D-California) told CNN. President Donald Trump has also expressed his support for the bill on Twitter.

Read the full story at Seafood Source

Blue Harvest follows Nielsen COVID-19 advice, promotes vertical integration, local fish

March 25, 2020 — Blue Harvest Fisheries, a New Bedford, Massachusetts-based groundfish and scallop harvester and processor that’s recently gone through some considerable expansion, is following the coronavirus-related advice of the consumer survey giant Nielsen Company.

It’s promoting itself in New England as a vertically integrated company and a local source of seafood.

Many retailers and foodservice companies in the eastern US have opted for imported fresh seafood from Iceland and Norway, or previously frozen product from Iceland, Norway or China in recent years, Blue Harvest noted in a press release issued Tuesday, adding:

“But right here in our local New England waters, we have a tremendous natural resource that is underfished and underutilized in our haddock, ocean perch, and Atlantic pollock stocks. Given the proximity of these stocks to our harbors, markets and transportation infrastructure, there is no risk of supply interruption from disruption of air transport from Europe, or ocean transport of twice-frozen product from China. And there is no risk of reduced availability and resulting price increases from a lack of air freight capacity.”

Read the full story at Undercurrent News

Coronavirus cancellation pinches New Bedford seafood industry

March 25, 2020 — The International Seafood Buyers Luncheon, which for years has showcased the city’s fishing industry and seafood processing plants, has been cancelled due to concerns about the coronavirus.

It is one of the first cancellations locally due to the infectious disease first identified in Wuhan, China at the end of last year which has since spread across the globe.

One SouthCoast Chamber posted the cancellation on its website, and Ian Abreu, manager of business development and small business engagement at the Chamber and a New Bedford City Council, confirmed it was due to concerns about the coronavirus. The New Bedford event had been scheduled for Friday. Rick Kidder, co-chief executive officer, did not return calls for comment.

The cancellation of the New Bedford luncheon and tour is a trickle-down effect after the postponement of the Seafood Expo North America/Seafood Processing North America, scheduled to be held March 15-17 in Boston, because of concern over the coronavirus, according to Edward Anthes-Washburn, executive director of the Port of New Bedford.

Typically, some 40 to 50 buyers would come to New Bedford, get an overview of the city’s port, enjoy a luncheon and tour five or six seafood processing plants, he said. This would have been the 15th year New Bedford has hosted the event.

Read the full story at the New Bedford Standard-Times

East Coast fishing crippled by coronavirus crisis, restaurant shutdowns

March 25, 2020 — Escalating coronavirus closures in Northeast cities have left seafood unsold and boats tied up, threatening to inflict lasting damage on the U.S. fishing fleet.

State governments ordering restaurants to close and people to stay in their homes brought business to a screeching halt at major seafood hubs like Boston and the New Fulton Fish Market in New York City’s sprawling Hunts Point food terminal.

“It’s really serious here. Some buyers have not given us a price, and in some cases, they still have the fish,” said Jim Lovgren, a longtime trawler captain with the Fishermen’s Dock Cooperative in Point Pleasant Beach, N.J.

“The issue here is the restaurants. The average American doesn’t cook fish at home,” said Lovgren. Restaurant and food service buyers account for the vast majority of demand in the fresh fish market, but state orders limiting restaurants to offering take-out service only immediately evaporated those sales, he said.

The crisis hit amid a growing economy and a relatively mild winter with good fishing in the New York Bight. Jumbo fluke that had been bringing $4 a pound at the dock plummeted to 75 cents, meaning “50 cents to the boat,” said Lovgren.

“So, the market is upside down,” he added. Co-op members have even discussed whether they may need to close the dock if those conditions persist.

Read the full story at National Fisherman

JIM LOVGREN: Congress must act to save U.S. fishing industry

March 25, 2020 — With the coronavirus being spread around the world and nations reacting to this threat in many different ways — from doing nothing, to closing the borders and full quarantines — the unintended effects of such government actions have yet to be fully felt.

Granted the stock market has lost 30 percent in value in just three weeks’ time, the average American really doesn’t feel that unless he is living on his investment returns.

With the closing of schools, and restaurants and any places of public gatherings, an enormous crisis is being created. Many people are being put out of work, and some of them may not have a business to come back to when the crisis is over. The coronavirus may topple an empire if we let it.

How? By exposing our self-inflicted dependence on foreign imports by every major industry in our country.

Years ago, the problem was our dependence on imported oil from the Middle East. That problem was based on cost of production — it was cheaper to import oil than to produce our own oil. As oil prices rose, and fracking technology advanced, we have reached a point where we have energy independence — although it is based on fossil fuel, and not fissionable fuel.

In regard to almost every other industrial production, be it agricultural, pharmaceutical, manufacturing or whatever, our own companies have sold their soul to short-term profits. We are at the mercy of foreign companies and governments for many of our essential items, and it was our politicians of both parties that sold us out.

Read the full opinion piece at National Fisherman

U.S. Commercial Fishing Interests Describe COVID-19 Challenges; List Top Federal Aid Assistance Proposals

March 24, 2020 — WASHINGTON — The following was released by Saving Seafood’s National Coalition for Fishing Communities:

Late last week, Saving Seafood staff was asked by Congressional offices for comment and input from the Commercial Fishing Industry as to what is being experienced as a result of the disruption resulting from the COVID-19 crisis, and how Federal emergency economic assistance might be able to assist.

Over the weekend, Pacific Seafood took the initiative to work across industry lines to craft letters, which have now been sent to the President, House and Senate Leadership, and Cabinet Members, outlining bold action that can be taken to preserve the operating liquidity of the seafood production employers who provide and support domestic food infrastructure and the millions of jobs they support. An unprecedented outpouring of over 180 companies and organizations throughout the seafood industry participated in this effort. These letters address possible actions in Congress.

To respond to the Congressional requests, Saving Seafood reached out to our extensive network of commercial fishermen and related businesses on the Atlantic, Pacific, and Gulf coasts, as well as Hawaii, for input on how COVID-19 has affected their businesses, and for recommendations on what they feel would be the best ways for the government to help. These efforts address possible actions at the local, state, and Federal levels, including both Congressional and Administration/Agency actions.

The fishing and seafood sectors are not homogeneous, and different regions and fisheries are experiencing different challenges; therefore, the forms of assistance described are intended to reflect both immediate pressures where prices have fallen, as well as longer term needs associated with securing future fishing vessel crew-members, and processing workforce.

We would like to express gratitude to Senators Ed Markey, Lisa Murkowski, Dan Sullivan, and Elizabeth Warren and their staffs for communicating the needs and concerns of the seafood industry to Senate leadership. It is our hope that Congress will heed their request, and also recognize and take action to address the reality that our commercial fishing and seafood industries are highly diverse between regions. Additional assistance beyond what is outlined in today’s letters and this release may be needed to address broader near-term critical needs for some seafood producers. Domestic harvesting, production, processing, transportation, and promotion will all need federal assistance to ensure that we can provide a steady supply of healthy domestic seafood to US consumers during this time of crisis.

NOAA’s “Fisheries of the United States 2017” reported that more than 2/3 (68%) of the $102.2 billion that consumers spent on fishery products in 2017 is spent at food service establishments, with less than one-third sold in retail outlets for home consumption. Thus, the necessary closures in the nation’s hospitality and restaurant industry are having an outsized impact on domestic commercial fisheries.

While this effort focused on the effect of the COVID-19 crisis on commercial harvesters and processors, support businesses such as fuel, shipyards, gear manufacturers, etc. are also being impacted by a decline in commercial fishing.

The following is a summary of suggestions made by members of our industry.

  • Essential Employee Status – According to guidelines published by the Department of Homeland Security, those employed in fish harvesting and processing are considered “Essential Critical Infrastructure Workers” as they provide food to the nation. Fishermen and processor staff must also be designated as essential employees so that they would be able to continue operations during any potential shelter-in-place orders. These businesses must also have free and fast testing deployed locally for these essential workers, as testing is a necessary component of onboarding/crewing protocol to safely serve upcoming fishing and processing seasons.
  • Grant programs or stimulus to cover losses – In order to maintain domestic seafood supply chains and to ensure continued operations, many businesses in the commercial fishing industry need liquidity. These businesses feel that additional borrowing should be a last resort, as the duration of this crisis is unknown and many businesses are already overleveraged in an attempt to keep up with foreign markets, including Asia where their seafood industry is heavily subsidized. Loan forgiveness for loans used to maintain payroll, grants for maintenance to keep vessels in good working order, and low-interest loans to refinance existing debt would help.
  • Payment relief – In addition to direct payments, and forgivable loans, another suggestion that would allow companies to continue operations is the suspension of certain financial obligations such as utilities, real estate tax, and mortgages.
  • Government purchase of seafood – The government could increase seafood purchases for institutional use (i.e. prisons, hospitals, school lunch programs, etc.) as well as for distribution as food assistance. The purchases would provide much needed capital, ensure stable prices, allow companies to move stored inventory, and ensure continued operations. This would also ensure a stable supply of fresh, healthy food for those who are facing food shortages.
  • Payroll and Unemployment Assistance – Many businesses are concerned that when restaurants, hotels, and bars re-open they will face significant lag time before resuming operations if they are forced to lay off staff during this time. This lag would compound the financial difficulties they are already facing. They would like to be able to continue paying staff or assure them that unemployment payments will be available to quickly fill the gap so that their employees don’t seek work elsewhere. Additionally, many vessel crew members are considered self-employed and do not currently qualify for unemployment or paid leave, so relief efforts must also be extended to these workers.
  • Promote American Seafood – On an encouraging note, many businesses are seeing an increase in retail sales of seafood through grocery stores and markets. U.S. fisheries are among the best in the world and this is a perfect opportunity to promote consumption of sustainably caught domestic seafood. A “Buy American” campaign, with simple instructions, could go a long way to helping these businesses move their product and maintain revenue.
  • Visa Expediting – Many businesses rely on temporary, seasonal foreign labor for the harvesting and processing of seafood. Current travel restrictions and bureaucratic delays are limiting the number of essential workers available. When travel restrictions are reduced and retail businesses reopen, fishing operations need to be able to staff up as quickly as possible, including hiring essential workers with valid temporary, seasonal visas.
  • Federal Fisheries Disaster Action– Declaration of a Federal fisheries disaster opens up aid options including direct subsidies for struggling businesses and low interest loans. The Administration should expedite the OMB approval process of stakeholder “spend plans” for fishery disasters already declared and funded by Congress. There are currently plans sitting at OMB awaiting final approval and funding disbursements. The COVID situation has placed a more urgent need in coastal communities for these previously appropriated funds.
  • Supply chain access – Several fishing operations around the country sell their products overseas. They are requesting continued access to and cooperation from officials at ports, rail, and border crossings so that they can maintain their sales.
  • Stability of Fisheries Access – In order that the industry may make a full and speedy recovery, to reduce costs, and to maintain supply, we urge reducing unnecessary regulatory burdens currently in place that are preventing access to and sustainable harvest from fishing grounds.

Read the letter to the President and the Administration here

Read the letter to Congress here

Senators Markey, Murkowski, Warren, Sullivan Call on Senate Leadership to Support Fishing and Seafood Industry in Coronavirus Response

March 24, 2020 — March 23, 2020 — The following was released by The Office of Senator Ed Markey (D-Mass.):

Senators Edward J. Markey (D-Mass.) and Lisa Murkowski (R-Alaska) today were joined by Senators Elizabeth Warren (D-Mass.) and Dan Sullivan (R-Alaska) in leading a letter to Senate leadership calling for urgent support for the fishing industry as it endures severe economic hardship as a result of the COVID-19 pandemic.

Given the vast amount of domestic seafood that is enjoyed in restaurants and exported to international markets, the closure of these markets from the COVID-19 pandemic has caused fishermen and seafood processors to face uniquely drastic economic impacts. As part of the urgently needed support, the letter highlights a variety of ways Congress can help the industry, including: establishing federal procurement programs for U.S. seafood products, federal fisheries disaster assistance funding, and the inclusion of support mechanisms for vessel loan payments assistance in any economy-wide coronavirus response package.

Full text of the letter can be found below.

The Honorable Mitch McConnell
Majority Leader
United States Senate
Washington, D.C. 20510

The Honorable Chuck Schumer
Minority Leader
United States Senate
Washington, D.C. 20510

Dear Leader McConnell and Leader Schumer,

As you work to draft economic relief packages to respond to the ongoing health and economic crisis caused by the spread of the novel coronavirus (COVID-19), we urge you to include support for the fishing industry, which is facing severe economic hardship as a result of this pandemic.

The fishing and seafood industries are essential drivers of the American economy, with $5.6 billion worth of fisheries products landed and $11.6 billion worth of fisheries products processed in 2018.  The COVID-19 outbreak has caused restaurants across the United States to shutter, eliminating a key customer base for the fishing and seafood industries. Large export markets in virus-affected countries like China have also been disrupted. Additionally, many fishermen are not eligible for unemployment benefits because they are self-employed. Congress must provide dedicated financial assistance to these vital industries to ensure that, when this crisis has passed, we still have a robust fishing economy. 

Some fisheries are completely shut down because there is no market for their fish. Seafood processors are struggling because closed restaurants are no longer buying fresh products. When boats sit idle in port, unable to fish, fishing captains cannot make vessel loan payments or pay crewmembers. Crewmembers often depend on their captains to provide meals during fishing trips, and are therefore lacking meals and pay. Without congressional help, this industry might go bankrupt at the dock.

When evaluating potential support, Congress should consider the establishment of federal procurement programs specifically for U.S. seafood products; helping fishermen with vessel loan payments and refinancing; qualifying fishermen for unemployment insurance; funding federal fisheries disaster assistance; and deploying other financial support mechanisms to maintain the stability of the seafood industry. We also strongly support robust funding for the National Marine Fisheries Service in the regular appropriations process to ensure that the global pandemic does not compromise management of our nation’s fisheries. 

We urge you to consider the unique and dire plight of the fishermen and seafood producers in the next legislative response to COVID-19. Without assistance, we face the real possibility of losing a significant portion of our fishing industry to economic challenges caused by COVID-19, and forever changing the character of our working waterfronts. 

Vietnam Seafood Enterprises Propose Financial Solutions During Pandemic

March 24, 2020 — Domestic seafood enterprises have proposed many financial solutions to help them overcome difficulties in production and business during the novel coronavirus (COVID-19) pandemic, according to the Vietnam Association of Fisheries (VASEP).

They have a large inventory of seafood products while customers have delayed payment for many of their export batches. Meanwhile, the export value has also decreased significantly. Those have had a great impact on payment for their loans in March, April and May, VASEP said.

Read the full story at Seafood News