Fisheries Loan and Loan Guarantees
NB, Canada
Financing for commercial fishing activities in New Brunswick
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
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 New Brunswick
- Aquaculture and Fisheries (NB)
- Department of Agriculture
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a loan or loan guarantee to cover the costs of buying a new or used vessel, buying or repairing an engine, buying a commercial fishing license, obtaining a quota, and more.
grant_single_labels|projects
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides financial support through loans and loan guarantees to enhance the capabilities and growth of the fisheries sector. This program focuses on aiding in the acquisition of essential equipment and licenses necessary for efficient operations.
- Purchase of a new or used vessel.
- Purchase of an engine or equipment related to fisheries.
- Conducting major repairs to the hull or engine of a vessel.
- Purchase of a commercial fishing license or obtaining a quota.
grant_single|admissibleProjectsExample
$14,000
Obtain a new commercial fishing license and quotas for expanded operations
$50,000
Conduct R&D for sustainable fishing methods and technologies
$24,000
Provide specialized training for the crew on new fishing technologies
$120,000
Purchase a new commercial fishing vessel for offshore fishing
$25,000
Purchase advanced fish-finding equipment for the vessel
$60,000
Repair and upgrade the engine of the current fishing vessel
grant_single_labels|admissibility
Eligibility for a loan or loan guarantee from the Department of Agriculture, Aquaculture and Fisheries is determined by specific criteria related to the applicants and their proposed activities.
- Applicants must first seek financing from a private lender before applying for a DAAF loan or loan guarantee.
- Applicants must be involved in activities related to purchasing a vessel, engine, or equipment pertinent to fisheries, making major repairs to a vessel, or acquiring a commercial fishing license or quota.
- Applicants cannot apply for refinancing or repaying existing debt with the loan.
- New entrants, defined as those who have owned a farm for five years or less, may have access to lower interest rates and equity requirements.
- Applicants must provide acceptable security for the loan or loan guarantee.
- Applicants must demonstrate a minimum equity investment into the project, with at least 10% for general applicants and 5% for new entrants. This percentage may be higher depending on project risk.
grant_eligibility_criteria|who_can_apply
This grant program is designed for those involved in the fisheries sector who require additional financial support to supplement private lender financing. The program includes specific allowances for new entrants in terms of interest rates and equity requirements.
- Individuals or businesses purchasing a new or used vessel.
- Applicants seeking to buy an engine or equipment related to fisheries.
- Projects involving major repairs to a vessel's hull or engine.
- Entities looking to acquire a commercial fishing license or quota.
- New entrants who have owned a farm for five years or less eligible for lower equity requirements and interest rates.
- Businesses that can provide acceptable security for the loan or guarantee and demonstrate the required equity contribution.
grant_eligibility_criteria|who_cannot_apply
This grant does not clearly state specific exclusions for certain types of companies or industries. The focus is mainly on the positive eligibility criteria.
grant_eligibility_criteria|eligible_expenses
This grant provides opportunities for individuals and businesses within the fisheries sector to expand and enhance their operations. The eligible activities are specifically targeted towards acquiring essential resources and making pivotal improvements to fishing capabilities.
- Purchase a new or used vessel.
- Purchase an engine or equipment related to fisheries.
- Make major repairs to the hull or engine of a vessel.
- Purchase a commercial fishing license or obtain a quota.
grant_eligibility_criteria|zone
The eligible expenses for the DAAF loan program are related to the acquisition and improvement of assets within the fisheries sector.
- Purchase of a new or used vessel.
- Purchase of an engine or equipment related to fisheries.
- Major repairs to the hull or engine of a vessel.
- Purchase of a commercial fishing license or obtaining a quota.
grant_single_labels|criteria
The evaluation and selection of projects for this grant are intended to assess the viability and alignment with the specific objectives of the Department of Agriculture, Aquaculture and Fisheries' loan program.
- Viability of the business plan, including detailed financial projections and assumptions.
- Management qualifications and experience, ensuring responsible operation of the business.
- Marketability and strategic planning in terms of target market and competitive positioning.
- Production capacity and historical performance against projected outputs.
- Level of equity contribution by the applicant and adequacy of security provided.
- Alignment of the project with sectoral development goals and sustainability objectives.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Seek Private Financing
- Contact private lenders to apply for financing for your fisheries project.
- Obtain documentation of the financial assistance approved by a private lender.
- Step 2: Prepare Business Plan
- Develop a comprehensive business plan including business description and project details.
- Include financial information: previous three years of financial statements or income tax returns, and projected income and cash flow statements for the next three years.
- Detail the management plan and outline management's qualifications.
- Include a marketing plan specifying target customers and sales strategy.
- Provide production details: historical summary and forecasts.
- Step 3: Ensure Security and Equity
- Prepare acceptable security for the loan or loan guarantee.
- Demonstrate a minimum equity investment of 10% (5% for new entrants) into the project.
- Step 4: Assemble Application Package
- Compile the business plan, security details, and equity information.
- Include all necessary documentation and confirmation of private lender support.
- Step 5: Submit Application
- Contact the Department of Agriculture, Aquaculture and Fisheries to submit the application.
- Provide all required documents and complete application forms as instructed by DAAF.
- Step 6: Confirmation of Application
- Receive confirmation from the DAAF that your application has been received.
- Keep a record of the submission confirmation for future reference.
Apply to this program
Unlock Financial Support for Fisheries Development
The Department of Agriculture, Aquaculture and Fisheries (DAAF) offers repayable loans and loan guarantees to support the fisheries sector, working in collaboration with private lenders to secure the necessary funding for eligible projects. This initiative is particularly advantageous for new entrants, who may benefit from lower interest rates and equity requirements.
Detailed Insights on DAAF Loan and Loan Guarantee Program
Fostering growth and sustainability in the fisheries sector, the loan program by the Department of Agriculture, Aquaculture and Fisheries (DAAF) provides a vital financial bridge for those in the industry needing supplementary support beyond what private lenders offer. Designed to assist with diverse development needs, these loans and loan guarantees facilitate the acquisition of critical assets such as vessels, engines, and fishing equipment, which are integral to expanding operational capacities and enhancing competitive advantage. Additionally, major repairs to vessels and the strategic purchase of commercial fishing licenses or quotas are supported through this initiative, addressing both immediate operational needs and long-term strategic goals.
The application process is structured to ensure the feasibility and potential success of funded projects. A comprehensive business plan is mandatory, laying out detailed business descriptions and strategic insights into project objectives. Financial projections spanning three years of future income statements and cash flow statements, alongside historical financial data for existing operations, are crucial for demonstrating fiscal responsibility and potential for growth. Moreover, an elaboration of management plans that underscores operational efficacy, alongside a robust marketing strategy for product sales, ensures that projects can thrive in competitive markets.
Emphasizing financial prudence, applicants must muster minimum equity of 10%, reduced to 5% for new entrants, to gain funding access. This equity requirement shows the department's commitment to proportionate risk sharing, safeguarding public funds by ensuring applicants have a substantial stake in their ventures. Security assurances are also decreed as necessary, aligning with market risk considerations involved in each project, thereby optimizing returns and emphasizing responsible investment.
No application fee remains an attractive feature, promoting accessibility for a broader range of applicants, while interest rates, determined on a case-by-case basis, reflect equitable financial assessments tailored to individual circumstances. The flexible repayment terms, aligned with projected cash flows, enhance operational resilience by adapting payment schedules to match revenue streams, thereby preventing undue financial strain on fisheries operations.
An additional commitment, in the form of a yearly loan guarantee fee, subsidizes the department's risk management measures, ensuring continued support for a thriving fisheries sector. As stakeholders craft their proposals, they can expect open collaboration with DAAF, who work tirelessly with private lenders to identify favorable financing outcomes for both succession planning and entrepreneurial development in viable projects.
This initiative underscores DAAF's dedication to fortifying the fisheries industry, essential for both economic vitality and sustainability. Through calculated, supportive financial mechanisms, the program empowers stakeholders to navigate fiscal hurdles, safeguard their operations, and harness new opportunities.
