Vessel Upgrade or Gear Purchase/Upgrade - Section B
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The following types of loans are available under this loan purpose category:
- All types of vessel upgrades (for product quality improvement, see PQI page)
- Gear purchases
- Engine rebuilds
- Engine replacements (for engine fuel efficiency, see engine fuel efficiency upgrade page)
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Eligibilty
- At least 25% of applicant's total gross income for past 2 years was from commercial fishing;
or
- Applicant lacks training or employment opportunities in areas of residence other than
commercial fishing;
and
- Applicant is not eligible for financing from a recognized commercial lender.
Section B applicants may not have received a prior loan under
Section A unless the loan requested under Section A was for engine fuel efficiency or the purchase of a limited entry permit.
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Lending Limit
- The total balances outstanding on all permit loans made under Section B of the Commercial Fishing
Loan Program may not exceed $200,000. All other loans made under Section B of the Commercial Fishing Loan Program may not exceed $100,000.
- The total balances outstanding on all loans made under the Program may not exceed $400,000.
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Collateral Requirements
- Generally, the maximum loan amount for a loan secured by a documented vessel is 75%
of the survey value (65% for AK vessels).
- The maximum loan amount may be increased by offering additional collateral.
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Terms and Conditions
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Fees
- A $100 application fee must accompany all applications.
- An Orgination Fee of 1% of the loan amount will be deducted from your loan proceeds at closing.
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Vessel Upgrade or Gear Purchase/Upgrade - Section B Loan Application Package
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There are different pages 1 and 2 for each different type of loan (limited entry permit, vessel purchase, etc.).
If you are applying for more than one type of loan, complete pages 1 and 2 for each type of loan, then complete one
set of pages 3 through 13. A separate application fee is required for each type of loan.
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