The Provincial Government today announced it is enhancing the Harvester Enterprise Loan Program to make the down payment loan and interest rebate more accessible to fish harvesters by offering them as stand-alone options.
As part of the program changes, loan guarantees are now an optional component of the program. Harvesters approved for a loan without a guarantee may still apply for the other two benefits of the program, the interest rebate and patient down payment loan. This change will help reduce the burden, complexity and processing times for harvesters and financial institutions. Loan guarantees of up to $4 million will continue to be available to financial institutions that require them.
To date, the program has proven to be a success with the Innovation and Business Investment Corporation (IBIC) having approved under the program:
- $3.78 million in loan guarantees
- $591,000 in down payment loans
- $335,735 in interest rebates
Harvesters interested in applying for the program should complete an application form available on the Harvester Enterprise Loan Program website with the Department of Industry, Energy, and Technology (IET) available to assist with the preparation and review of applications prior to applying to a financial institution. Applicants can contact FishHelp@gov.nl.ca or 709-729-3484 should they require such assistance. Completed applications should be directed to the harvester’s local financial institution who will subsequently coordinate the application with IET.
The program represents an investment of up to $10 million towards the down payment loans and up to $5 million for the interest rebates. Approvals will be based on budget availability and applications will be reviewed on a first-come, first-served basis.
Loans are negotiated between the harvester and their financial institution, and must comply with certain conditions, such as a limit on the interest being charged to the harvester.
The Harvester Enterprise Loan Program is the latest initiative the Provincial Government has undertaken to position the province’s fishing industry for future success. Other initiatives include:
- Permitting outside buyers to apply for fish buyer licences for seafood products harvested in this province.
- Increasing processing capacity for the crab fishery based on an increased Total Allowable Catch for 2024.
- Establishing a 10-point plan to advance free enterprise in the fishing sector with strengthened controls over corporate concentration.
These measures are in addition to ongoing advocacy to the Federal Government on management decisions and funding of projects through the federal-provincial Atlantic Fisheries Fund.
The Innovation and Business Investment Corporation (IBIC) operates as a Crown corporation reporting to the Minister of Industry, Energy and Technology. It was established on May 31, 2018, under the Innovation and Business Investment Corporation Act.
Quotes
“The Harvester Enterprise Loan Program was developed in response to harvesters’ concerns about impediments they face when trying to access financing to support their operations. With the enhancements announced today, we continue to support a collaborative approach to setting harvesters up for success and encouraging new entrants to the industry.”
Honourable Lisa Dempster
Minister of Fisheries, Forestry and Agriculture
“Since the launch in July of last year, we have monitored the program to ensure that it is achieving what it was intended to – expanding support for independent fish harvesters and positions the sector for future success. These program enhancements will reduce the complexity and burden for harvesters and financial institutions while ensuring that the program continues to incentivize lower-cost financing for harvesters.”
Honourable Steve Crocker
Minister of Industry, Energy and Technology
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Harvesters Enterprise Loan Program
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