The Harvester Enterprise Loan Program (the “Program”) is an enhancement of the former Fisheries Loan Guarantee Program and will expand supports for independent fish harvesters positioning the sector for future success.
The program has been improved to increase maximum loan guarantee thresholds. New components have been added to allow for down payment loans and interest payment rebates to harvesters to support eligible activities.
Loan Guarantee
A government guarantee may be provided for loans through eligible financial institutions and is available to assist harvesters in the province in obtaining financing for:
- vessel related items such as construction, purchase and/or refit.
- combining of enterprises and license acquisitions.
- refinancing of loans owed to fish processors for fixed assets and/or license acquisitions.
- refinancing of loans previously obtained from chartered banks for vessel related purposes and fish license acquisitions (concurrent with combining of enterprises).
Down Payment Loans
Down Payment Loans are available for the purpose of meeting the down payment requirements of accessing a loan from a financial institution for eligible activities. Borrowers typically must provide down payments of a minimum of 10 per cent of overall costs for vessel acquisition and construction, and a minimum of 15 per cent for all other purposes.
The support will be in the form of a secured loan of up to 15 per cent, to a maximum of $450,000, with a maximum term of 20 years, to support down payment requirements. No interest accrual or payments will be required for the first five years. Repayment and interest accrual begins in year six; interest will be charged at the Bank of Canada’s policy rate.
Interest Rebates
Finance charges on guaranteed loans offered by financial institutions are negotiated between the borrower and the institution. The Program places a ceiling on financing charges by allowing institutions to charge interest on guaranteed loans at the bank prime rate plus a maximum of 2.0 per cent or 2.5 per cent depending on the nature of the loan.
Rebates will cover interest paid in excess of the bank prime rate, up to the maximum financing charge amounts established by the program. Rebates will be provided directly to borrowers on the basis of the eligible portion of interest paid for up to five years.
HOW TO APPLY