Fisheries Finance Program

Provides low-cost, long-term credit to the U. S. aquaculture and fishing industries through the Fisheries Finance Program (50 CFR Part 253, Subpart B). The program is administered out of the Financial Services Division, Gloucester, MA. For additional information call (978) 281-9154.

Capital Construction Fund

Enables fishermen to construct, reconstruct, or (under limited circumstances) acquire fishing vessels with before-tax, rather than after-tax, dollars. The program is administered out of the Financial Services Division, Silver Spring, MD. For additional information call (301) 713-2396.

WHAT PROJECTS CAN BE FINANCED?
Available for financing and refinancing the construction, reconstruction, reconditioning or purchase costs of:

1. Aquacultural Facilities, including land
2. Fisheries Shoreside Facilities, including land
3. Fishing Vessels (Usually, refinancing only... call us)
4. Halibut and Sablefish ITQs
5. Fishing Capacity Reduction Buybacks

HOW DOES THE PROGRAM WORK?
Direct long-term loans from the U. S. Government for fisheries capital projects.

• Fixed principal and interest payments to stabilize debt service
• Loans up to 80% of the cost of eligible projects
• Maturities up to 25 years
• Interest rate will be fixed at loan inception at 2.0% above the U. S. Treasury's borrowing cost for similar maturities.

DO YOU QUALIFY?

• Must be a U. S. citizen
• Must have good earnings record, net worth and liquidity behind project
• No venture capital risks
• No startup projects for parties without successful fisheries experience
• Must have good credit
• Must be fully secured with debtor's assets
• Usually recourse against debtor's principals

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Although Program risk standards are high, the benefit is a lower interest rate and a longer financing term than is generally otherwise available. This results in a smaller annual debt service demand on variable, and often unpredictable, fisheries income.

HOW DO I GET MORE INFORMATION?

Contact the regional Financial Services Branch and discuss your project:
Northeast Region Financial Services Branch, Gloucester, MA
(978) 281-9154

After discussing your proposal, if it appears to meet the program's requirements, you will be sent an application form to complete and submit along with a one-time filing/commitment fee equal to 1/2 of 1% of your proposed loan amount.