Fisheries Loan Guarantees

By mmuise
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:

  • 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),
  • have first seeked financing from a private lender,
  • 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,
  • invest, or have invested, a minimum 10% (new entrants 5%) equity into the project,
  • provide acceptable security for the proposed financing,
  • 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
mmuise