Government Loans for Fisheries: Loan Requirements

Government loans for fisheries are direct loan programs created by the government to directly benefit fisheries and related industries. As with any loan program, there are certain loan requirements that must be met in order to qualify for a loan under one of these programs.

Basic Loan Requirements

In order to qualify for one of these government loans you must meet the following criteria:

  • You must be a US Citizen.
  • You must be able to show good earnings and have good credit. In addition, you must have liquidity and net worth for the project.
  • The project must be fully secured by your assets.
  • There must be at least a 3 year history of owning the project, or a comparable project.

Terms of the Loan

Long term loans are available for up to 25 years. HHHHHowever, the life of the loan cannot exceed the economic life of the project. The rate of the loan is around 2% over the cost of the funds to the government.

The Application Process

The actual application government loans process will vary and it depends on the eligible project itself. Among other things, you must be able to provide a sound business plan and an appraisal for all facilities. You will also be required to show proof that you have all the permits that will be required for the project itself.

Next you will need to provide a complete list of major customers and their credit terms as well as a complete list of major suppliers and their credit terms and credit limits.

When the government loans project applicant is a corporation, limited liability company, etc, you must provide a complete list of owners or shareholders, and the percentage owned by each party. That information must also include the compensation they receive from the entity named within the application. Any legal documents that are in place for the entity must also be presented for review. There must also be a copy of the resolution that authorizes the transaction to take place. Finally, you may also need a certificate in good standing from the Secretary of State for your state.

Taking care to ensure that you have all of the required documents gathered together before you actually make the government loans application will streamline the entire process and help things to move along much faster. You should contact any of the agencies involved in the process to ascertain the requirements beforehand.