Marine chief: Allocation of $20M CARES funds to fisheries is complicated
The allocation of $20.1 million in federal economic relief for Maine’s fishery and aquaculture operations has been delayed due to complex certification requirements.
But it’s expected that checks to individual businesses will be sent in November, Department of Marine Resources Commissioner Patrick Keliher wrote in a Sept. 3 letter to the fishing industry.
In May, the state learned that Maine’s fishing industry would receive the money out of $300 million in CARES Act relief funding designated for U.S. fishermen and seafood industries affected by the COVID-19 pandemic.
Fishery participants eligible for funding include commercial fishing businesses, charter and for-hire fishing businesses, qualified aquaculture operations, processors and other fishery-related businesses. Tribes are also eligible for funding including for any negative impacts to subsistence, cultural or ceremonial fisheries.
Shortly afterward, the Department of Marine Resources conducted a survey to ask industry how the $20 million should be spent.
“The vast majority — 79% of you — let us know that you want a direct payment — a check,” Keliher wrote yesterday. “And that's what we're going to do.”
However, unlike many other sources of relief in the CARES Act, eligibility has some limitations.
“Specifically, recipients must certify that they have experienced a greater than 35% loss of revenue from COVID-19, as compared to their previous five-year average,” he wrote. “Originally, DMR was led to believe that we could do this certification at the level of the fishery.”
For example, based on its landings information, the department could show that almost all of the state’s fisheries experienced a revenue loss greater than 35% during the spring, compared to the prior five-year average.
“We believed that by documenting that, we could make every active license holder eligible to receive funds,” he said.
But subsequent conversations with federal officials revealed that the 35% impact must be demonstrated at the level of each license holder.
“To make the process as painless as possible, DMR is doing an analysis to determine if we can use the landings information we have for the commercial fishing industry to certify the loss at the level of the individual,” Keliher continued. “We hope this will be a help, since it will mean that approximately 7,500 license holders don't have to all do it themselves.”
The department is doing the analysis as quickly as possible and plans to notify businesses via both letters and emails upon completion.
“Your letter will tell you whether or not DMR believes your landings information shows a greater than 35% revenue reduction and if you are eligible to apply for funds,” he said.
The department won’t be able to start issuing checks until all the applications are in, because the size of the check will be based on the number of eligible applications.
“Right now, I anticipate that we will be accepting applications and appeals during the month of October, and I hope that checks will be mailed out in November,” Keliher wrote.
If the department’s data don’t show the required level of loss, fishermen will still have the opportunity to submit an appeal, he added.
The state doesn’t have complete revenue data for dealers, processors, aquaculturists and for-hire guides, so those sectors will still need to self-certify their loss.
The department will use less than $50,000 of the money to administer the direct payments. Based on feedback from the industry, it also plans to use a small percentage of the money to help build consumer demand for Maine seafood.
“Through a branding and promotion program, we intend to build consumer awareness and demand for the quality products Maine’s fishing, aquaculture and seafood industry produce,” he said.
The pandemic-related shutdown of restaurants and other outlets serving fresh seafood decimated the supply chain of fishermen and seafood processors.
In 2019, Maine’s fishing industry generated a value for harvesters and aquaculture operators of more than $673 million, which translates to approximately $2 billion in overall value when accounting for the value added by dealers and processors.
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