Aquaculture Loans and Loan Guarantees
no fixed amount
Loan, Loan Guarantee
Description:
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides repayable loans and loan guarantees to promote development of the aquaculture sector as a complementary lender. DAAF will work with other lenders to facilitate succession and new development of viable projects, such as: purchasing of new or used vessels, undertaking activities related to aquaculture, purchasing an engine or equipment related to aquaculture, or making major repairs to the hull or engine of a vessel.
Comments on Funding:
The financial assistance comes as a direct loan or a loan guarantee.
There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.
The applicant must demonstrate a minimum 10% (new entrants 5%) equity into the project. The department may require a higher equity level based on the risk of the project.
New entrants, defined as someone who has owned a farm for five years or less, may be eligible for lower interest rates and equity requirements.
Continuous Intake
Eligibility:
The applicant must:
1. be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less), 2. have first seeked financing from a private lender, 3. use the financing for:
a) purchasing a new or used vessel,
b) undertaking activities related to aquaculture, c) purchasing an engine or equipment related to aquaculture,
d) making major repairs to the hull or engine of a vessel.
4. invest, or have invested, a minimum 10% (new entrants 5%) equity in the business,
5. provide acceptable security for the proposed financing,
6. have a business plan.
Application Steps:
No specific steps have been identified.
Documentation Needed:
Applicants must submit:
1. a completed application form,
2. a business plan which includes:
a) a description of business and project,
b) financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
c) a description of management plan, d) a marketing plan, e) productions details.
Other Things to Note:
No other details available.
About the author
Maurice
