Harvester Enterprise Loan Program
The Harvester Enterprise Loan Program (the “Program”) is an enhancement of the former Fisheries Loan Guarantee Program and will expand supports for independent fish harvesters positioning the sector for future success.
The program has been improved to increase maximum loan guarantee thresholds. New components have been added to allow for down payment loans and interest payment rebates to harvesters to support eligible activities.
Offered by Government of Newfoundland and Labrador, Jobs, Growth and Rural Development
Amount
Loan guarantees of up to $2 million for license acquisition, $3 million for vessel-only related items and $4 million for combining of enterprises; down payment loans of 10 to 15 per cent of the eligible project cost, to a maximum of $450,000; and interest rebates for the first five years of the guaranteed loan, up to 2 to 2.5 per cent above Commercial Bank Prime
Quick eligibility check
Who can apply
Independent fish harvesters in NL seeking financing for vessel purchase/construction, licence combining/acquisition, or refinancing
About the funding
A government guarantee may be provided for loans through eligible financial institutions and is available to assist harvesters in the province in obtaining financing for
vessel related items such as construction, purchase and/or refit
combining of enterprises and license acquisitions
refinancing of loans owed to fish processors for fixed assets and/or license acquisitions
Show all funding details
refinancing of loans previously obtained from chartered banks for vessel related purposes and fish license acquisitions (concurrent with combining of enterprises
Down Payment Loans are available for the purpose of meeting the down payment requirements of accessing a loan from a financial institution for eligible activities
Borrowers typically must provide down payments of a minimum of 10 per cent of overall costs for vessel acquisition and construction, and a minimum of 15 per cent for all other purposes
The support will be in the form of a secured loan of up to 15 per cent, to a maximum of $450,000, with a maximum term of 20 years, to support down payment requirements
No interest accrual or payments will be required for the first five years
Repayment and interest accrual begins in year six; interest will be charged at the Bank of Canada’s policy rate
Finance charges on guaranteed loans offered by financial institutions are negotiated between the borrower and the institution
The Program places a ceiling on financing charges by allowing institutions to charge interest on guaranteed loans at the bank prime rate plus a maximum of 2.0 per cent or 2.5 per cent depending on the nature of the loan
Rebates will cover interest paid in excess of the bank prime rate, up to the maximum financing charge amounts established by the program
Rebates will be provided directly to borrowers on the basis of the eligible portion of interest paid for up to five years
Ineligible Activity
The purchase of moveable fishing gear
Normal vessel maintenance and repairs
Vessel construction/upgrades outside the Province
Refinancing of debt, excluding debt incurred with fish processors or chartered
banks/credit unions; and
Working capital loans
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| BDC Small business loan | Loan | Up to $350,000 per BDC Small Business Loan: up to $100K (up to 6 months interest-only payments, 5-year amortization) or over $100K and up to $350K (up to 12 months interest-only payments, up to 8-year amortization) | Open |
| BDC Working capital loan | Loan | No fixed amount | Open |
| Black Entrepreneurship Program: Black Entrepreneurship Loan Fund | Loan | Up to $250,000 | Open |
| Canada Small Business Financing Program (CSBFP) | Loan, Loan Guarantee | Maximum loan amount of $1.15 million per borrower: up to $1,000,000 for term loans (no more than $500,000 for leasehold improvements and equipment, of which a maximum of $150,000 for intangible assets and working capital costs) and up to $150,000 for lines of credit | Open |
