Fisheries Loan Guarantees
The Fisheries and Aquaculture Development Board provides loan guarantees for the purchase of fishing licenses or quotas. The program is designed to share the financial risk with financial institutions.
The business plan must show reasonable chances of viability and must demonstrate that a demand exists for the product(s);
The applicant must have acceptable knowledge of fisheries and business, and an acceptable credit history;
The project must fit with the province’s sector strategies (in terms of impact on marine resources, jobs, export sales, markets, etc.);
Acceptable security must be provided for the proposed financing; and
The applicant must invest, or have invested, an acceptable amount of equity in the business.
Loan guarantees may be provided for the purchase of fishing licenses or quotas.
The program is designed to share the financial risk with financial institutions.
There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.