Greetings from Bristol Bay, fish people. First, I’d like to thank you for your diligence and conscientiousness preventing the spread of COVID-19 in our fisheries and coastal communities this summer. While fishing is still underway across the state, here in the Bay we’ve wrapped our main sockeye season with no instances of community spread.
The few tenacious characters left with nets in the water over here await fall fish after a compressed and frustrating season on the Westside. While fishing is always an uncertain endeavor, COVID-19 is impacting markets worldwide in a way we’ve never seen. We can’t be sure how long these effects will last or what the long-term impacts will be. With a base price of $0.70 for sockeye here in the Bay, down from $1.35 last year, and dock prices down by 60% most other places, a lot of us are looking toward the federal and state COVID-19 relief programs to help get our crews and businesses through the winter.
However, we’re hearing a hesitance to apply for available relief programs. Fishermen are adaptable, resilient, and tough. But there is no need to grit this one out, folks. There will be paperwork, it might be tedious, and you will spend more time than you’d like on the phone, but the funds available here can help your business weather the next few years of unique uncertainty. Fisheries and the food security we provide are worth federal and state investment.
There are two programs that Alaska fishermen should look into. The federal Payment Protection Program (PPP), deadline August 8, 2020, and the AK CARES program from the State of Alaska. The PPP, a loan program with a forgiveness mechanism, looks at last year’s expenses while AK CARES, a grant program, looks at expenses and debts incurred this season. Please note that you can only apply for AK CARES if you have received less than $5,000 from the PPP.
The State of Alaska recently updated the AK CARES program to include Alaska Commercial Fishing Businesses. The application period will open August 6, 2020 through an online portal - make sure you have a good internet connection. Find more information on eligibility for commercial fishermen here.
The Alaska Marine Conservation Council (AMCC), AKFN’s parent organization, submitted its Paycheck Protection Program application through Northrim Bank. It’s essential to work directly an SBA-approved lender. With the deadline looming it is important to have your required paperwork ready to submit when you receive the application link from your banker. As of this writing, many banks have closed their application period for the Aug. 8 deadline. However, Northrim is still taking applications in Alaska.
If you are applying as crew, a private contractor, without your employer, you will need your 1099 tax form from 2019. As a vessel owner or captain, you will need your schedule C or schedule K tax form. You will also need three months of banking statements from Jan-March of 2020. As a captain, you will need to be sure that your crew has not applied for the program on their own before claiming their wages on your application. If they have already received funds from the program, you will be unable to claim their wages. As crew, be sure that your captain has not already filed on your behalf.
If you work with a CPA or other financial advisor, they can help decide which program you may be eligible for and assist with the application process.
AMCC and the Fishing Communities Coalition (FCC) have worked with the Alaska congressional delegation to make the PPP workable and helpful for fishing businesses. Since the first round, fishermen are now able to include their crew share payments in their application. Private contractors, crew or anyone who receives a 1099, are also able to participate in the program.
We appreciate the work of the Alaska delegation and look forward to further relief for commercial fishermen in upcoming legislation. We're anticipating further funding to be added to the PPP by Congress, in addition to added flexibility for fishing businesses to amend their applications from the first round. We will keep you posted as we know more.
Here are a few links that will be helpful as you wade into this process.
While you MUST work with your banker on the PPP application, here are some of the forms from the Small Business Administration for reference:
Payment Protection Program Borrower Application Form
Payment Protection Program EZ Loan Forgiveness Application (for loans less than $150,000)
Paycheck Protection Program - How to Calculate Maximum Loan Amounts
FAQ on AK CARES here.
Please take extra care as we finish out the summer season and transition back into our winter lives. Wear your masks and be kind to each other.
For any questions or suggestions for Mug Update, please email jamie@akmarine.org
