Used Vessel Purchase Loan

By mmuise
Description:

The Used Vessel Purchase Loan provides funding to fishers and sea farmers in Nova Scotia to purchase a used vessel.


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) and repayment periods 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,
  • purchase a used 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. the 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. the confirmation of Fishing Master Certification (ie. FM 4, SVOP, etc.), 7. detailed bank statements for the previous 3 months (including chequing/savings accounts, line(s) of credit, etc.), 8. the purchase & Sale Agreement (signed by all parties).

Other Things to Note:

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About the author
mmuise