Modifications to a Vessel Loan

By mmuise
Description:

The Modifications to a Vessel Loan provides financial support to fishers and sea farmers in Nova Scotia, helping them make improvements to a vessel (lengthening and widening, complete rebuilds, new electronics and fixed equipment, and fiberglassing existing wooden boats) in order to increase efficiency.


Comments on Funding:

The loans have flexible repayment schedule to fit the cash flow of the business (annual, semi-annual and in some cases, interest only payments for certain periods of time). The repayment period can be from 1 to 20 years. A Builder's mortgage over the new vessel is the primary security for the loan. The mortgage claim is registered with Transport Canada. Additional security over fishing licenses is taken through a General Security Agreement.

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • be active fishers/sea farmers and new entrants in Nova Scotia,
  • make improvements to their vessel.
Application Steps:

Applicants must submit a completed application form to Nova Scotia Fisheries and Aquaculture Loan Board.

Documentation Needed:

Applicants must submit:
1. the application form,
2. full Personal Tax Returns & Notices of Assessment for last 3 years of loan applicant as well as shareholders and guarantors (if applicable), 3. a confirmation from Canada Revenue Agency that there are no personal income taxes owing, 4. company Financial Statements for the past three years (if applying as a company) ,
5. photocopies of two pieces of government ID (birth certificate, passport, driver’s license), 6. quote(s) from all suppliers,
7. the confirmation of Fishing Master Certification (ie. FM 4, SVOP, etc.), 8. detailed bank statements for the previous 3 months (including chequing/savings accounts, line(s) of credit, etc.), 9. the purchase & Sale Agreement (signed by all parties),
10. a completed Appendix C: Engine, Vessel Upgrades, Modifications.

Other Things to Note:

A changed version of the application form was published.

About the author
mmuise