Fisheries Loan Guarantees

Amount:

no fixed amount

Type:

Loan Guarantee

Description:

The Fisheries Loan Guarantees provides loan guarantees to New Brunswick fishers and sea farmers for the purchase of fishing licenses, quotas, engines or equipment related to fisheries, new or used vessels or for making major repairs to the hull or engine of a vessel. The program is designed to share the financial risk with financial institutions.

Comments on Funding:

There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year. Repayment terms are matched to the cash flow of the project as supported by the business plan. Options include interest only payments or principal and interest payments.

Deadline:

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) the purchase of a new or used vessel,
b) the purchase of an engine or equipment related to fisheries,
c) making major repairs to the hull or engine of a vessel,
d) the purchase of a commercial fishing license or obtain a quota,
4. invest, or have invested, a minimum 10% (new entrants 5%) equity into the project, 5. provide acceptable security for the proposed financing,
6. have a business plan.

Application Steps:

Applicants must submibmit the completed form by mail at
1350 Regent Street, PO Box 6000, Fredericton, NB, E3B 5H1, or by phone at (506) 453-2666

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:

Link Guide:

Maurice

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Canada to identify and maximize funding to grow their business.

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