Fisheries Loans

By mmuise
Description:

The Fisheries Loans provide financial assistance in the form of loans to new or existing commercial fishers 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 Department of Agriculture, Aquaculture and Fisheries (DAAF) acts as a complementary lender, so clients interested in a DAAF loan or loan guarantee must first seek financing from a private lender.


Comments on Funding:

Interest rates are determined on a case by case basis. 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. New entrants may be eligible for lower interest rates and equity requirements.

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:

The Fisheries Loans (New Entrant Loan) and The Fisheries Loans no longer have separate program descriptions, so I've comprised them here as well.

About the author
mmuise