Aquaculture Loans and Loan Guarantees
The Fisheries and Aquaculture Development Board provides financial assistance in the form of loans and loan guarantees for aquaculture production and related services. The program is designed to complement other sources of lending and 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 aquaculture and business skills, 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 (typically 20% of the total project).
Direct loans may be provided to finance viable projects for the purchase or construction of various aquaculture capital costs such as equipment and buildings. Loan payments in the shellfish sector can be customized to correspond with the development of the project.
Loan guarantees may be provided on a portion of lines of credit for inventory and feed expenses, sharing the financial risk with financial institutions
|Fee Description||Rate in $||Effective Date|
|A service fee is payable in an amount equal to one and a half percent of the principal amount of a guaranteed loan outstanding on the date of issue of the guarantee, and annually therafter on each anniversary of the date of issue of the guarantee a service fee is payable in an amount equal to one and a half percent of the outstanding principal amount of the guaranteed loan on such anniversary date||1.5%||2010-08-10|