Harvester Enterprise Loan Program
No fixed amount
Rebate
Description:
Finance charges on guaranteed loans offered by financial institutions are negotiated between the borrower and the institution. The Program places a ceiling on finance charges by allowing institutions to charge interest on guaranteed loans at the bank prime rate (currently 6.7 per cent) plus a maximum of 2.0 per cent or 2.5 cent depending on the nature of the loan.
Comments on Funding:
Continuous Intake
Eligibility:
Applicants must:
1. Be a Canadian citizen/entity and a resident of Newfoundland and Labrador.
2. Be registered as a full time harvester as certified by the Professional Fish
Harvesters Certification Board and be eligible to hold a commercial fishing
license
3. Have a favourable credit record and demonstrate commercial viability, including
the ability to repay the loan(s).
4. Remain in good standing with both the Government of Newfoundland and
Labrador as well as the financial institution.
5. Be deemed eligible for financing from the financial institution.
6. Pledge security deemed sufficient by both the Government of Newfoundland and
Labrador and the financial institution.
Application Steps:
Applicants must:
1. Applications form available on the Provincial Government website (Harvester
Enterprise Loan Program – Industry, Energy and Technology ).
2. Applicant must select the program they are applying form. The application is a fillable form, and allows space for harvester and fishery information, project description, financial and employment history, as well as a net worth statement.
3. Completed in full, including a signature from the applicant, to be eligible for any aspect of the Program.
4. Formal application is made directly to the applicant’s financial institution, which in turn will submit the application to the Department to open the file and assign an account officer.
Before a full assessment can be completed, the financial institution must also collect and
submit all relevant documentation necessary to the Department, as per the checklist in
Annex A.
5. Applications that are assessed positively by the Department will be submitted to the IBIC
Board of Directors for approval. Once a decision has been made, the financial institution will be notified by IET. If the applicant also applied for the down payment loan and/or interest rebate then IET will also notify the applicant directly.
Documentation Needed:
Applicants must submit:
1. Good Standing with the Government of Newfoundland and Labrador;
2. Most recent financial statements preferably audited or accountant
reviewed;
3. A letter from their financial institution confirming the applicant has made all required payments on their loan. The letter must also indicate the interest rate applicable
for the loan and total amount of interest paid for the year and
4. Required payments to the financial institution related to the
guaranteed loan.
Other Things to Note:
About the author
Maurice
