June 29, 2020 — Plant-based seafood analog developer Ocean Hugger Foods said it “must cease operations” due to deteriorating business conditions caused by the coronavirus pandemic.
The company, which sells exclusively to foodservice customers, has seen its business channels dry up in the face of the COVID-19 crisis, according to a 23 June update on its website.
June 29, 2020 — More than a decade after being established, two marine monuments in the Pacific Islands region may get detailed management plans soon. Maybe.
The plans were supposed to be developed within two years of the 2009 establishment of the monuments.
June 29, 2020 — The Small Business Administration announced Thursday that owners of commercial fishing vessels are now eligible to apply for Paycheck Protection Program (PPP) loans — giving them only three business days to get their paperwork in before the program expires at the end of the month.
The PPP program was designed to let small business owners keep workers on payroll during the COVID-19 pandemic. The loans can be fully forgivable if the recipient uses at least 60 percent of the funding to pay workers.
Advocates for the fisheries on Friday praised the move from the SBA while encouraging fishing boat owners to hustle on down to their local banks to get their applications in. All PPP loans must be approved no later than than June 30.
“We’re hearing that many banks stopped taking PPP loan applications on Friday,” said National Coalition for Fishing Communities Executive Director Robert Vanasse. “With this news from the SBA, we hope that local banks will extend that window until Tuesday.”
June 29, 2020 — When the first coronavirus cases in Chicago appeared in January, they bore the same genetic signatures as a germ that emerged in China weeks before.
But as Egon Ozer, an infectious-disease specialist at the Northwestern University Feinberg School of Medicine, examined the genetic structure of virus samples from local patients, he noticed something different.
A change in the virus was appearing again and again. This mutation, associated with outbreaks in Europe and New York, eventually took over the city. By May, it was found in 95 percent of all the genomes Ozer sequenced.
At a glance, the mutation seemed trivial. About 1,300 amino acids serve as building blocks for a protein on the surface of the virus. In the mutant virus, the genetic instructions for just one of those amino acids — number 614 — switched in the new variant from a “D” (shorthand for aspartic acid) to a “G” (short for glycine).
June 29, 2020 — Lobster prices are falling in New England as the industry deals with the effects of the coronavirus pandemic, and they could drop even more later this summer, industry officials said.
The American lobster fishing industry, based mostly in Maine, has had to cope with a supply chain that has been disrupted by the pandemic. Wholesale prices were lower than previous years this spring, and consumers started to see lower prices at markets earlier in June.
Members of the industry said prices could likely fall more in July. America’s lobster catch typically picks up in the summer, when lobsters shed their shells and reach legal trapping size. This year, fishers will likely bring lobsters to the docks in a time when restaurants are slowed or shuttered and seafood processors aren’t taking nearly as many of the crustaceans, industry members said.
That could translate to lower prices to consumers, who are already paying less than $6 per pound for lobsters in some Maine markets. Prices around $8 or $9 per pound are typical of this month in Maine.
“The state needs to do something to curb supply, because there is no demand,” said David Cousens, a lobster fisher and former president of the Maine Lobstermen’s Association. “Otherwise we’re going to have a disaster.”
Read the full story from the Associated Press at the Sun Journal
June 26, 2020 — A federal fisheries management agency has barred some of its employees from making formal references to the COVID-19 pandemic without preapproval from leadership, according to an internal agency document.
The National Marine Fisheries Service, part of the Commerce Department, manages federal fish stocks in partnership with appointed regional councils. Fishing crews and seafood businesses have been asking the agency to relax regulations as the COVID-19 pandemic has complicated their operations. There have also been outbreaks among industry workers.
The National Marine Fisheries Service’s guidance document, dated June 22, says it applies to the agency’s formal rules and management announcements.
The four-page memo says the agency’s “preferred approach” is making “no reference to anything COVID related,” and it offers preapproved replacement phrases such as “in these extraordinary times.”
June 26, 2020 — President Trump’s recent roundtable meeting with fishermen in Bangor was a unique opportunity to bring national attention to COVID-19’s catastrophic impact on fishing communities here in Maine and around the country. Most Americans are unaware of the devastation the crisis has inflicted on fishing economies, which support 40,000 jobs in Maine and 1.5 million jobs in the United States. The president’s visit put a spotlight on Maine’s fishermen for a brief moment during this time of crisis.
What resulted from this meeting was the opening of a national marine monument south of Cape Cod to additional commercial fishing, and the creation of a yet-to-be-defined fisheries task force. While significant, this action does not address the underlying economic challenge facing Maine fishermen because of the pandemic – the collapse of domestic and international demand for seafood.
Roughly three-quarters of the seafood consumed in the U.S. is eaten at restaurants. With restaurants closed or severely constrained, prices and demand have dropped dramatically – close to 70 percent for many New England species. As families struggled to find healthy, affordable food, fishermen were being told not to go fishing. Seafood is one of the healthiest food choices you can make for your mind, body and the environment. More access to heathy food should be our shared priority. Unfortunately, the pandemic has illuminated the cracks in our national food system, meaning that now is the time to invest in comprehensive solutions to protect local, sustainable seafood for our nation.
June 26, 2020 — The U.S. Department of Treasury and the Small Business Administration announced on Thursday, 25 June, that commercial fishing vessel owners are now eligible to apply for Paycheck Protection Program (PPP) loans.
The loan program is a COVID-19 relief initiative designed to enable small business owners to keep workers on the payroll as the coronavirus impacted their operations. The loans can be fully forgivable if the recipient uses at least 60 percent of the funding toward paying workers.
June 26, 2020 — We at Saving Seafood have been working with the Commerce Department and the White House to address a problem with the Payroll Protection Plan (PPP) that prevented vessel owners from applying, because under the IRS code they pay crew-members via 1099. We worked closely with David Frulla of Kelley Drye, David Borden of the Offshore Lobstermen’s Association, and Pamela Lafreniere of the Port of New Bedford, who all provided a great deal of technical assistance.
The issue is discussed at length on our Saving Seafood Coronavirus information portal, https://www.savingseafood.org/coronavirus/ .
The link to go directly to the PPP section is here.
Because the initial guidance for the PPP program stated that businesses could not use payments to independent contractors in their calculations of payroll for purposes of determining the eligible PPP loan amount, vessel owners were not eligible. Accordingly, we requested an amendment to the interim final rule:
This morning, the Small Business Administration granted this request and published such an amendment. It is available here.
We want to specifically thank Joseph Russo, Special Assistant to the President and Director of Business Outreach at the White House Office of Public Liaison, and Patrick Wilson, Director of the Office of Business Liaison at the U.S. Department of Commerce for their assistance in bringing these concerns to the SBA and the Treasury Department.
IMPORTANT: This Tuesday, June 30 is the deadline for small businesses to apply for forgivable PPP loans. If you want to apply, you should contact your banker and accountant immediately and assemble the application over the weekend.
The relevant section of the amendment is included below:
This interim final rule addresses payroll costs that may be included on a PPP loan application submitted by certain boat owners or operators that are engaged in catching fish or other forms of aquatic animal life (fishing boat owners) and that have hired one or more crewmembers who are regarded as independent contractors or otherwise self-employed for certain federal tax purposes under 26 U.S.C. § 3121(b)(20) of the Internal Revenue Code (the Code). A crewmember may be described in Section 3121(b)(20) of the Code if the fishing boat on which he or she works has an operating crew that is normally made up of fewer than 10 individuals and the crewmember receives as compensation for his or her work a share of the boat’s catch or of the proceeds from the sale of the catch, in an amount that depends on the amount of the catch. Such a crewmember generally may not receive additional cash remuneration or other compensation for his or her services with respect to the fishing boat. A fishing boat owner must report compensation paid to such a crewmember on Box 5 of IRS Form 1099-MISC. The First Interim Final Rule, posted on April 2, 2020, provided that because independent contractors have the ability to apply for a PPP loan on their own, they do not count for purposes of another applicant’s PPP loan calculation. 85 FR 20811, 20813 (April 15, 2020). Because crewmembers described in Section 3121(b)(20) of the Code are treated as independent contractors or otherwise self-employed for certain federal tax purposes, fishing boat owners have faced uncertainty about whether to report payments to such crewmembers as a payroll cost on their PPP loan applications.
On April 14, 2020, SBA, in consultation with Treasury, posted an interim final rule explaining that the self-employment income of the general active partners of a partnership could be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership. 85 FR 21747, 21748 (April 20, 2020). The Administrator, in in consultation with the Secretary, has determined that the relationship of a fishing boat owner and a crewmember described in Section 3121(b)(20) of the Code is analogous to a joint venture or partnership. For example, the fishing boat owner and crewmembers each contribute labor or resources to a common commercial enterprise, and the owner and crewmembers share in the enterprise’s profits. In order to harmonize SBA’s interim final rule regarding partnerships with SBA’s interim final rule described above regarding independent contractors the Administrator, in consultation with the Secretary, has determined that in the event of a conflict (i.e., a case where one or more partners in a partnership are treated as independent contractors for tax purposes), the rules regarding partnership will govern. Accordingly, as described below, this interim final rule (1) provides that a fishing boat owner may include compensation reported on Box 5 of Form 1099-MISC and paid to a crewmember described in Section 3121(b)(20) as a payroll cost in its PPP loan application, and (2) addresses a fishing boat owner’s eligibility to obtain loan forgiveness of payroll costs paid to a crewmember who has obtained his or her own PPP loan.
June 25, 2020 — The following was released by NOAA:
Three shiny, orange-red autonomous surface vessels set out on the water from Alameda, California, in May bound for the Bering Sea where they will survey the nation’s largest fish stock and monitor changing weather and ocean conditions in the Arctic.
The surface vessels are part of an armada of autonomous (unmanned) ocean vehicles NOAA is deploying this summer in the Pacific, Arctic and Atlantic oceans to provide high-quality environmental data for resource management and weather forecasting.
“We are accelerating the use of unmanned systems during COVID-19 to meet critical mission needs at a time when some of our ship and aircraft missions have been postponed for safety reasons,” said retired Rear Adm. Tim Gallaudet, assistant secretary of commerce for oceans and atmosphere and deputy NOAA administrator. “The innovative systems will provide valuable information for communities at a time when it may be difficult to do so by other means.”
The missions support NOAA’s Unmanned Systems Strategy to advance the use of unmanned systems, which was announced last November at the White House Science & Technology Summit.