Fisheries Loan and Loan Guarantees

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.

Who is eligible?

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.

Who is not eligible

This grant does not clearly state specific exclusions for certain types of companies or industries. The focus is mainly on the positive 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.

Eligible geographic areas

This grant is managed by the Government of New Brunswick, indicating that it may be region-specific. However, without explicit information on eligible geographical areas, we cannot determine the exact locations.

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.