In order to update you on the need for President Carter's proposed To give you an idea of the drought conditions as they exist in Shasta, The California Chamber of Commerce will soon be publishing statewide estimates of small business drought loss for 1977. However I do think that the need for the speedy enactment of the President's SBA Drought Loan Program is sufficiently underscored by the enclosed report from Shasta County. In 1976, California suffered small business drought losses totaling over $60 million and was not authorized to participate in the SBA's economic injury loan program until early this year. While the present Senator Gaylord Nelson SBA program does provide some assistance, Mr. Covington indicates that only $1 million has been approved statewide for water well development. The President's proposal, by eliminating the physical loss standard and allowing for prospective relief, is much more responsive to the drought-related needs of small businesses. California looks forward to assisting you in the effort to enact President Carter's small business drought loan program. After our phone conversation this a.m., I checked with the offices of the SBA to see how many applications the agency has received since the special drought legislation enacted by the President's office for Northern California. Mr. Don Lloyd of the SBA who had worked with clients in our Northern California Enclosed is a list of losses incurred through July of this past year in the Shasta County area; losses accruing from loss of business and extra costs involved in attempting to stay open, particularly those resorts around Shasta Lake, the large reservoir. This year, undoubtedly, is going to be of greater consequence to the recreation dollars expended within our county and in other parts of Northern California. Some businesses will simply have to close down before the summer is over, and many others will attempt to hang on as long as possible, until normalcy returns. We must take into consideration that there will be more people who will realize they are getting into serious trouble this summer and they will be applying to SBA for loans, as notices have come via the news media that SBA will be accepting disaster relief applications through September of this year. It is our belief that enough monies should be appropriated to handle the current, justifiable loans, and a reserve for other loans that will be applied for by small businesses and individuals as the season progresses. Please be assured that our corporation is ready to assist in any way possible in our realm of capability. |