Maine Sen. Olympia Snowe’s staff showed up in the senator’s stead at the 34th Annual Maine Fishermen’s Forum in Rockport Friday morning to discuss how the recently passed federal stimulus package has provisions for shoring up the state’s fishing industry.
Staffers Matthew Walker, Wally Hsueh, and Michael Conathan outlined how the American Recovery and Reinvestment Act, passed last month, includes Small Business Administration money and critical tax provisions to provide significant benefits to fisherman.
Though scheduled to speak in the morning session, Sen. Snowe was delayed in Washington, D.C. and was subsequently scheduled to arrive at the Samoset Resort for the Fishermen’s Forum later in the day.
Certain reinvestment act provisions will allow a small fishing business to immediately write off up to $250,000 of new investment instead of depreciating over a period of five, seven or more years.
The bill also allows carrying back of 2008 business losses for five years instead of two. Under this provision a fisherman can offset prior-year profits with this year’s losses and obtain an immediate tax refund to be used to sustain operations, or hire personnel.
Also, current law requires small business owners to pay quarterly estimated taxes totaling 110 percent of their liability in the previous year. To encourage cash flows, the stimulus legislation reduces the quarterly estimates to 90 percent of last year’s tax liability.
Going beyond tax incentives, and answering direct concerns of fisherman for short-term assistance, the new law allows for the creation of a loan stabilization program. Within the Small Business Administration (SBA), the program will allow fishermen with an existing small business loan to apply for a no-interest, no-fee government-guaranteed loan of up to $35,000 to help with existing payments.
Snowe hopes fishermen will take advantage of this particular incentive to prevent defaulting on boats, equipment, traps, etc., and stay in business.
“The plan is rolling out within the next couple of months,” said Conathan.
An in depth report on the Fisherman’s Forum will appear in the March 12 issue of The Lincoln County News.
