Loan Guarantee

Fisheries Loan Guarantee Program

Amount:

$3,000,000

Type of Program:

Loan Guarantee

Description:

The Fisheries Loan Guarantee Program supports the development of the province's independent fish harvesting industry by providing a government guarantee on loans through local chartered banks for the construction or purchase of marine vessels and/or to purchase new engines and fishing equipment for the improvement, rebuilding or alteration of existing vessels. Loans may also be approved to refinance loans previously obtained from fish processors for fixed asset costs.

Comments on Funding:

The program offers loan guarantees for combining of enterprises up to $3 million; vessel-related items up to $2 million, and license acquisitions up to $1,5 million.
The Provincial Government’s guarantee can provide up to 100% of an outstanding loan.
Guaranteed loans are offered at the financial institution prime rate, as negotiated between the harvester and the lender, to a maximum of prime plus 2% or 2.5%, depending on the term of the loan.
10-15% down payment and adequate security are required.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be entities, individuals or groups,
be a Canadian citizen/entity and a resident of Newfoundland and Labrador,
harvesters must be registered full time as certified by the Professional Fish Harvesters Certification Board and eligible to hold a commercial fishing license,
have a favorable credit record and demonstrate commercial viability, including the ability to repay the loan.

Application Steps:

Applicants must apply directly to the financial institution, which in turn will request the guarantee from the Provincial Government.

Documentation Needed:

Applicants must submit the Fisheries Loan Guarantee Application Form.

Program Contact:

Fisheries Loan Guarantee Program

Fisheries Loan Guarantee Application

fisheries_loan_insert.pdf

Aquaculture Working Capital Loan Guarantee Program

This program is currently closed.

Amount:

No Fixed Amount

Type of Program:

Loan Guarantee

Description:

The Aquaculture Working Capital Loan Guarantee Program is designed to facilitate improved access to financing for incorporated enterprises operating in or proposing to operate in the finfish industry.

When It Ends:

Closed

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be an incorporated enterprise operating in or proposing to operate in the finfish industry,
be currently involved or proposing to become involved in the commercial scale production of finfish at a Newfoundland and Labrador site licensed and approved by the Department of Fisheries and Aquaculture,
provide a business plan which includes information as requested by Government in the Business Plan Guidelines,
clearly demonstrate, through its business plan a strong potential for sustainable employment opportunities, incremental production and increased sales, and long-term commercial viability,
clearly demonstrate, to the satisfaction of Government, a definite need for Government financial assistance by way of an equity investment; that the equity investment is complementary to and levers to the maximum extent possible other sources of financing; and that the project could not proceed on a commercially viable basis without Government participation,
have all necessary licenses and regulatory approvals, to the satisfaction of Government,
be in good financial and legal standing with Government,
clearly demonstrate that management has the required technical, financial, marketing and managerial expertise for the operation of a commercial-scale aquaculture enterprise,
if an existing operator, have at the date of application a minimum private sector equity position equivalent to 20% of the total assets, evidenced by externally prepared (minimum review engagement) financial statements for the last fiscal year, updated to the date of application if requested by Government,
if the enterprise is a new operation, have a private sector equity investment equivalent to 20% of total program costs.

Application Steps:

Prospective applicants to the Aquaculture Working Capital Loan Guarantee Program should contact the Department of Fisheries and Aquaculture.

Documentation Needed:

The applicant must submit:

a completed application form,
a business plan including ownership, marketing, financial and technical details,
Auditor-prepared financial statements for the past 3 years of operations, if the applicant is an existing operation,
Pro Forma Income Statements and Balance Sheets on a monthly basis for the first year, and on an annual basis for the next 4 years, including all assumptions,
Projected Monthly Cash Flow Statements for the first 5 years of operations, including all assumptions,
a project plan covering a five year period,
other supporting documents.

Other Things to Note:

The program is not listed among programs and services of the Fisheries, Forestry and Agriculture department.

Program Contact:

Programs and Services

Agriculture Loan Guarantees

Amount:

No Fixed Amount

Type of Program:

Loan Guarantee

Description:

The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides loan guarantees to promote development of the agriculture sector as a complementary lender. Clients interested in a DAAF loan guarantee must first seek financing from a private lender.

Comments on Funding:

There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less),
have first seek financing from a private lender,
use the financing for:

purchasing an existing farm,
starting a new farm,
purchasing shares in a farming operation,
purchasing land for farming,
developing land for farming,
working capital requirements,

invest, or have invested, a minimum 10% (new entrants 5%) equity into the project,
provide acceptable security for the proposed financing,
have a business plan.

Documentation Needed:

Applicants must submit:

1
a completed application form,
2
a business plan which includes:

a description of business and project,
financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
a description of management plan,
a marketing plan,
productions details.

Program Contact:

Agriculture Loan Guarantees

FISHERIES DEVELOPMENT BOARD

Fisheries Loan Guarantees

Amount:

No Fixed Amount

Type of Program:

Loan Guarantee

Description:

The Fisheries Loan Guarantees provides loan guarantees to New Brunswick fishers and sea farmers for the purchase of fishing licenses, quotas, engines or equipment related to fisheries, new or used vessels or for making major repairs to the hull or engine of a vessel. The program is designed to share the financial risk with financial institutions.

Comments on Funding:

There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year. Repayment terms are matched to the cash flow of the project as supported by the business plan. Options include interest only payments or principal and interest payments.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less),
have first seeked financing from a private lender,
use the financing for:

the purchase of a new or used vessel,
the purchase of an engine or equipment related to fisheries,
making major repairs to the hull or engine of a vessel,
the purchase of a commercial fishing license or obtain a quota,

invest, or have invested, a minimum 10% (new entrants 5%) equity into the project,
provide acceptable security for the proposed financing,
have a business plan.

Documentation Needed:

Applicants must submit:

1
a completed application form,
2
a business plan which includes:

a description of business and project,
financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
a description of management plan,
a marketing plan,
productions details.

Program Contact:

Fisheries Loan Guarantees

FISHERIES DEVELOPMENT BOARD

Aquaculture Loans and Loan Guarantees

Amount:

No Fixed Amount

Type of Program:

Loan & Loan Guarantee

Description:

The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides repayable loans and loan guarantees to promote development of the aquaculture sector as a complementary lender. DAAF will work with other lenders to facilitate succession and new development of viable projects, such as: purchasing of new or used vessels, undertaking activities related to aquaculture, purchasing an engine or equipment related to aquaculture, or making major repairs to the hull or engine of a vessel.

Comments on Funding:

The financial assistance comes as a direct loan or a loan guarantee.
There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.
The applicant must demonstrate a minimum 10% (new entrants 5%) equity into the project. The department may require a higher equity level based on the risk of the project.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less),
have first seek financing from a private lender,
use the financing for:

purchasing a new or used vessel,
undertaking activities related to aquaculture,
purchasing an engine or equipment related to aquaculture,
making major repairs to the hull or engine of a vessel.

invest, or have invested, a minimum 10% (new entrants 5%) equity in the business,
provide acceptable security for the proposed financing,
have a business plan.

Documentation Needed:

Applicants must submit:

1
a completed application form,
2
a business plan which includes:

a description of business and project,
financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
a description of management plan,
a marketing plan,
productions details.

Program Contact:

Aquaculture Loans and Loan Guarantees

FISHERIES DEVELOPMENT BOARD