Aquaculture Capital Equity Program
NL, Canada
Newfoundland and Labrador commercial aquaculture funding
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Government of Newfoundland and Labrador
- Department of Fisheries and Land Resources
grant_single|status
grant_card_status|open
grant_single_labels|preview
This program offers at least $250,000 for finfish operations and $100,000 for shellfish operations to match private sector cash investments.
grant_single_labels|projects
Eligible projects and activities for this grant involve commercial-scale production of finfish or shellfish in Newfoundland and Labrador, demonstrating strong potential for sustainable employment, incremental production, and long-term commercial viability while necessitating government financial assistance to proceed.
- Commercial-scale production of finfish
- Commercial-scale production of shellfish
- Preparation and submission of a business plan including projections and required details
- Acquisition of necessary licenses and regulatory approvals
- Development of production plans covering a five-year period
- Purchase and installation of equipment and facilities
- Implementation of marketing and processing plans
grant_single|admissibleProjectsExample
$250,000
Corner Brook
Launching of a shellfish farming initiative, Newfoundland and Labrador
$250,000
St. John's
Establishment of a large-scale finfish farming operation in St John's, Newfoundland and Labrador
$250,000
Marystown
Expansion of a shellfish aquaculture farm, Newfoundland and Labrador
$250,000
Labrador City
Launching a finfish farming and processing plant, Newfoundland and Labrador
$250,000
Happy Valley-Goose Bay
Establishment of an automated finfish processing facility, Newfoundland and Labrador
$250,000
Gander
Development of a sustainable shellfish aquaculture site, Newfoundland and Labrador
grant_single_labels|admissibility
The grant is given at the discretion of the Government to incorporated enterprises involved in finfish or shellfish production in Newfoundland and Labrador, meeting specific financial, managerial, and operational requirements. The goal is to support commercial-scale operations that demonstrate sustainable growth and require government financial assistance.
- The applicant must be currently involved, or proposing to become involved, in the commercial-scale production of shellfish or finfish at a Newfoundland and Labrador site licensed and approved by the Department of Fisheries, Forestry and Agriculture.
- The applicant must provide a business plan which includes information as requested by Government in its Business Plan Guidelines.
- The applicant must clearly demonstrate, through its business plan, a strong potential for sustainable employment opportunities, incremental production and increased sales, and long-term commercial viability.
- The applicant must 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.
- The applicant must have all necessary licenses and regulatory approvals, to the satisfaction of Government.
- The applicant must be in good financial and legal standing with Government.
- The applicant must clearly demonstrate that management has the required technical, financial, marketing, and managerial expertise for the operation of a commercial-scale aquaculture enterprise.
- The applicant, if an existing operator, must have, at the date of application, a minimum private sector equity position equivalent to 20% of its total assets, evidenced by externally-prepared (minimum review engagement) financial statements for the last fiscal year, updated to the date of application, if requested. If the enterprise is a new operation, the applicant must have a private sector equity investment equivalent to 20% of total program costs.
- Participation in the proposed program would not preclude consideration under the Aquaculture Working Capital Loan Guarantee Program.
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for this grant. Eligible applicants must be incorporated enterprises operating or proposing to operate in the finfish or shellfish industry at a licensed and approved site in Newfoundland and Labrador.
- Incorporated enterprises in the finfish industry
- Incorporated enterprises in the shellfish industry
- Companies at a Newfoundland and Labrador site licensed and approved by the Department of Fisheries, Forestry and Agriculture
grant_eligibility_criteria|who_cannot_apply
Based on the information provided in the grant context, there are no specific types of companies mentioned that are not eligible for the Aquaculture Capital Equity Program.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for the Aquaculture Capital Equity Program include various aspects of aquaculture production and related activities.
- Capital expenditures for equipment and facilities
- Site locations and licences
- Stocking and growth projections
- Feed schedules and source of fish
- Harvesting, marketing, and processing plans
grant_eligibility_criteria|zone
Eligible geographic zones for this grant include specific areas within Newfoundland and Labrador where the applicant is or proposes to operate commercial-scale finfish or shellfish production. The site must be licensed and approved by the Department of Fisheries, Forestry and Agriculture.
- Newfoundland
- Labrador
grant_single_labels|criteria
The evaluation and selection criteria for the Aquaculture Capital Equity Program aim to assess the potential of the applicants to increase production, create sustainable employment, demonstrate financial viability, and justify the need for government financial assistance. Applicants must fulfill specific requirements related to their business plan, financial standing, and operational capabilities to be considered for the grant.
- The applicant must be involved in, or planning to become involved in, the commercial-scale production of shellfish or finfish at a Newfoundland and Labrador site licensed and approved by the Department of Fisheries, Forestry and Agriculture.
- A comprehensive business plan must be provided, including information as requested by Government in its Business Plan Guidelines.
- The business plan must demonstrate a strong potential for sustainable employment opportunities, incremental production, increased sales, and long-term commercial viability.
- The applicant must clearly demonstrate a definite need for Government financial assistance by way of an equity investment, showing that the project is not commercially viable without it, and that the investment complements other sources of financing.
- The applicant must possess all necessary licenses and regulatory approvals to the satisfaction of the Government.
- The applicant must be in good financial and legal standing with the Government.
- Management must have the required technical, financial, marketing, and managerial expertise for a commercial-scale aquaculture enterprise.
- Existing operators must show a minimum private sector equity position equivalent to 20% of their total assets, evidenced by externally-prepared financial statements. New enterprises must have a private sector equity investment equivalent to 20% of total program costs.
- Participation in this program will not preclude consideration under the Aquaculture Working Capital Loan Guarantee Program.
- Details of any outstanding lawsuits/liens/disputes must be provided.
- Banking and funding arrangements must be disclosed.
- Permission for Government representatives to contact the applicant’s bank and/or other funding sources must be granted.
grant_single_labels|register
- Step 1: Prepare a Business Plan
- Include complete ownership details, personal net worth statements of all major shareholders, and auditor-prepared financial statements if applicable.
- Describe management structure and include resumes of principal management members.
- Provide detailed marketing strategies and arrangements including major customers and sales percentages.
- Prepare financial documents such as auditor-prepared statements for the last 3 years, pro forma income statements, balance sheets, monthly cash flow statements for the first 5 years, and a complete listing of assets.
- Include a production plan covering a five-year period, which includes site locations and license numbers, stocking and growth projections, feed schedule, and details of capital expenditures.
- Attach any other information as required at the discretion of the Government.
- Step 2: Verify Private Sector Cash Investment
- Obtain an auditor’s or solicitor’s certificate to verify the applicant’s investment has been made concurrently with that of Government.
- Step 3: Obtain Necessary Licenses and Regulatory Approvals
- Ensure all necessary licenses and regulatory approvals are obtained to the satisfaction of the Government.
- Step 4: Submit Application
- Provide all required documents including the business plan and verification of private sector investment.
- Ensure that the application clearly demonstrates the need for Government's financial assistance and the project's potential for sustainable employment, incremental production, and increased sales.
- Step 5: Enter into Unanimous Shareholders Agreement
- Once the application is approved, enter into a Unanimous Shareholders Agreement with the Government, which includes all normal covenants and possibly a conversion right for Government if conditions of the agreement are not adhered to.
- Step 6: Maintain Compliance
- Ensure ongoing compliance with all covenants and conditions laid out in the Unanimous Shareholders Agreement and other associated contracts.
grant_single_labels|otherInfo
The grant focuses on the commercial production of aquaculture products in Newfoundland and Labrador, particularly aiming to enhance employment and industry growth in rural areas through significant financial assistance.
- Consideration given to both current and proposed operations in finfish or shellfish at government-licensed sites in Newfoundland and Labrador.
- Requirements include a robust business plan, private sector equity investment, necessary licenses, and regulatory approvals.
- Preference for matching the investment form of the applicant, with a minimum of $250,000 for finfish operations and $100,000 for shellfish operations.
- Participation does not rule out consideration for the Aquaculture Working Capital Loan Guarantee Program.
- Government retains redemption privileges and possible conversion rights if conditions aren't met.
grant_single_labels|contact
709.292.4111
Apply to this program
Aquaculture Capital Equity Program: Boosting Commercial Aquaculture in Newfoundland and Labrador
Overview of the Aquaculture Capital Equity Program
The Aquaculture Capital Equity Program is designed to foster the commercial production of finfish and shellfish in Newfoundland and Labrador through strategic financial investments. The program aims to increase production, create sustainable employment, and stimulate economic growth in rural Newfoundland and Labrador.
Program Objective
The primary objective of the Aquaculture Capital Equity Program is to support the expansion and success of commercial aquaculture operations in Newfoundland and Labrador. By providing significant financial contributions to both hatchery and marine site developments, the program seeks to increase production of commercial aquaculture products, thereby generating employment opportunities and upstream benefits for the processing, manufacturing, supply, and service sectors in rural areas.
Amount and Form of Investments
The program offers substantial financial support to qualifying projects. For finfish operations, the program provides a minimum investment of $250,000, while shellfish operations can receive a minimum of $100,000. It is important to note that this financial assistance requires a matching private sector cash investment, which must be verified through an auditor's or solicitor's certificate. This ensures that the applicant’s investment is made concurrently with the government’s contribution.
Government’s investment will mirror the form of the applicant's investment, with similar rights except the right to vote. Typically, the government’s investment is facilitated through a separate class of shares. Moreover, a Unanimous Shareholder Agreement will be entered into between the government and the applicant. This thorough agreement will include all standard covenants and may possess a conversion right, allowing the government to convert the investment under specific conditions, as well as redemption privileges.
Eligibility Criteria
To be considered for the Aquaculture Capital Equity Program, applicants must meet specific eligibility criteria that demonstrate their potential for long-term commercial viability and sustainable growth. Consideration will be given to incorporated enterprises that are either already operating or proposing to operate in the finfish or shellfish industry within licensed and approved sites by the Department of Fisheries, Forestry, and Agriculture in Newfoundland and Labrador.
Applicants must present a robust business plan that meets the government’s Business Plan Guidelines, clearly illustrating the potential for increased production, sustainable employment, sales growth, and long-term viability. Furthermore, the business plan should convincingly argue the necessity of government financial assistance, demonstrating that such investment is complementary to other financing sources and that the project could not proceed viably without it.
Additionally, applicants must hold all necessary licenses and regulatory approvals, be in good financial and legal standing with the government, and exhibit the managerial and technical expertise required for commercial-scale aquaculture operations. Existing operators need a minimum private sector equity position equal to 20% of total assets, while new operations require a similar equity investment equivalent to 20% of total program costs.
Requirements for Business Plan Submission
A successful application must include a detailed business plan that covers various aspects of the enterprise. The business plan requirements, at the discretion of the government, are categorized into Ownership, Management, Marketing, Financial, and Technical sections.
Ownership
The business plan must provide a complete list of shareholders, including the percentage and value of shares. Personal Net Worth Statements for all major shareholders (including matrimonial assets) are required. If a major shareholder is a corporate entity, auditor-prepared financial statements for the past three years and the identification of shareholders must be provided. Additionally, any businesses associated with the shareholders must be listed, and any debts owing to the government, including written-off or forgiven amounts, must be declared.
Management
Details of the management team are crucial. Applicants must include resumes of all principal management members. Confirmation of key persons insurance may be required, as well as clarification of employment status, be it employee, contract employee, or consultant.
Marketing
The business plan should detail marketing arrangements, including major customers and the percentage of total sales they represent. This section helps demonstrate the market potential and commercial viability of the proposed project.
Financial
For existing operations, auditor-prepared financial statements for the past three years are required. Applicants must provide Pro Forma Income Statements and Balance Sheets on a monthly basis for the first year, and annually for the next four years, including all underlying assumptions. Projected Monthly Cash Flow Statements for the first five years of operations should also be included, complete with all assumptions. An exhaustive list of all assets, current and to be acquired, as part of the project must be included, with serial numbers provided upon request. Any agreements pledging specific assets should also be disclosed.
Technical
The Technical section of the business plan must cover a five-year period, detailing site locations and license numbers, stocking plans with timings and numbers of fish, growth projections with temperature profiles, feed schedules, site rotational strategies, sources of fish (with contract confirmations), and projected capital expenditures for the first five years. This includes the quantity, size, and cost of equipment (cages, nets, boats, barges) and facilities (wharves, accommodations), as well as a harvesting, marketing, and processing plan.
Other Required Information
Applicants must provide any additional information as deemed necessary by the government. This could include details of any outstanding lawsuits, liens, or disputes, banking or funding arrangements, and permission for government representatives to contact the applicant’s bank or other funding sources.
Contact Information
For further information or inquiries about the Aquaculture Capital Equity Program, applicants can reach out to the Aquaculture Development Division of Fisheries, Forestry and Agriculture:
Fisheries, Forestry and Agriculture
Aquaculture Development Division
58 Hardy Avenue
Grand Falls-Windsor, NL
A2A 2K2
Phone: 709.292.4111
Conclusion
The Aquaculture Capital Equity Program presents a compelling opportunity for enterprises involved in the commercial aquaculture industry in Newfoundland and Labrador. By providing significant financial support and fostering sustainable production and employment, the program not only aids the growth of individual businesses but also contributes to the economic prosperity of rural communities in the province.
