New Vessel Construction Loan

By mmuise
Description:

The New Vessel Construction Loan helps fishers plan their new vessel to their specific needs.


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).
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,
  • build a customized vessel to meet their needs.
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 and the Notices of Assessment for the last 3 years of all Guarantor(s) and/or Shareholder(s),
3. the company financial statements for the last 3 years,
4. a confirmation from Canada Revenue Agency that there are no personal income taxes owed to Canada Revenue 5. Photocopies of two pieces of government ID (Birth Certificate, Driver’s License, Passport),
6. confirmation of Fishing Master Certification,
7. Detailed bank statements for the previous 3 months (including chequing/savings accounts, line(s) of credit, etc.),
8. Purchase & Sale Agreement (signed by all parties),
9. a completed copy of Appendix A: “Bill of Materials” signed and sealed by the boat builder and by the Applicant, 10. specifications from builder or Appendix B and quotes for main engine, electronics and hydraulics.

Other Things to Note:

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About the author
mmuise