Fisheries Loan Guarantee Program

By mmuise
Description:

The Fisheries Loan Guarantee Program supports the development of the province's independent fish harvesting industry by providing a government guarantee on loans through local chartered banks for the construction or purchase of marine vessels and/or to purchase new engines and fishing equipment for the improvement, rebuilding or alteration of existing vessels. Loans may also be approved to refinance loans previously obtained from fish processors for fixed asset costs.


Comments on Funding:

The program offers loan guarantees for combining of enterprises up to $3 million; vessel-related items up to $2 million, and license acquisitions up to $1.5 million.
The Provincial Government’s guarantee can provide up to 100% of an outstanding loan.
Guaranteed loans are offered at the financial institution prime rate, as negotiated between the harvester and the lender, to a maximum of prime plus 2% or 2.5%, depending on the term of the loan.
10-15% down payment and adequate security are required.

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • be entities, individuals or groups,
  • be a Canadian citizen/entity and a resident of Newfoundland and Labrador,
  • harvesters must be registered full time as certified by the Professional Fish Harvesters Certification Board and eligible to hold a commercial fishing license,
  • have a favorable credit record and demonstrate commercial viability, including the ability to repay the loan.
Application Steps:

Applicants must apply directly to the financial institution, which in turn will request the guarantee from the Provincial Government.

Documentation Needed:

Applicants must submit:
1. the Fisheries Loan Guarantee Application Form;
2. previous and current years income and expense statements (income tax returns are acceptable);
3. two years forecast of revenues and expenses;
4. details of historical and forecast revenues according to: species, volumes and price; and
5. a recent balance sheet detailing the businesses assets and liabilities, if incorporated.

Other Things to Note:

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About the author
mmuise