Loan Programs

Commercial Fishing Loan Fund

Vessel Purchase - Section B

 

Eligibility

  • 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 area 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.


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 outstanding balances on all loans made under the program may not exceed $400,000.

Collateral Requirements

  • Generally, the maximum amount for a loan secured by a documented vessel is 75% (65% for AK vessels) of either the survey value or the purchase price, whichever is less.
  • Example:
    The survey value of a vessel is $120,000 and the purchase price is $100,000.
  • Maximum Loan amount $75,000: 75% of the purchase price (for documented vessels), as it is less than the survey value.

    or

  • Maximum loan amount = $65,000: 65% of the purchase price (for AK vessels), as it is less than the survey value.
  • The maximum loan amount may be increased by offering additional collateral.

Terms and Conditions

  • Interest rate will be fixed at the time of loan approval. Current Interest Rates 
  • Maximum loan term is 15 years.
  • Borrower is responsible for all direct costs incurred in processing an application.

Fees

  • A $100 application fee must accompany all applications.
  • Preauthorization Fee - $100.00. If you have not located a vessel to purchase, you may want to obtain conditional approval by submitting a preauthorization application.

    The following are some advantages to preauthorization:
    • You know your loan limit
    • Seller is assured of a qualified buyer
    • Faster loan processing after finding a vessel
    • Loan funds are committed
    • Approval is valid for 90 days
  • An origination fee of 1% of the loan amount will be deducted from your loan proceeds at closing.

Vessel Purchase Loan Application Package


A separate application and fee is required for each type of loan.

The following Commercial Fishing Vessel Purchase Application pages are in PDF format. You will need Adobe Reader in order to view/print them. Acrobat Reader is distributed freely and available for download from Adobe®.

Loan Application

The Division of Economic Development, Department of Commerce, Community, and Economic Development complies with Title II of the Americans with Disabilities Act of 1990. This publication is available in alternative communication formats upon request. Please contact the Division of Economic Development at (907)465-2510 or TDD (907)465-5437 to make any necessary arrangements.