Government Loans for Fisheries: Qualifying with Bad Credit

Government loans are an important resource for small businesses. It can sometimes mean the difference between survival of the company or failure. Agricultural loans and loans for fisheries are no different. Loans of this naturally generally require that the applicant have good credit, but what happens when you need one of these loans and your credit is bad?

Importance of Government Loans

Government loans are an important resource for the business people who are not able to obtain financing through the traditional commercial channels. When one has bad credit, it becomes even more challenging than ever to obtain the necessary financing. For this reason, we have to take a look at some alternatives.

Qualification

There are specific qualifications which must be met for a person or company to be eligible for one of these government loans. An applicant:

  • Must be a US Citizen.

  • Must have satisfactory credit – If your credit is bad, that does not necessarily mean that government loans are out of the question. What it does mean however is that you’re going to have to work a bit harder to get the necessary funding.

  • Must have a good history of owning or managing such a project for a minimum of 3 years.

Bad Credit

When you have bad credit then we must look at some alternatives that will help us to get the funding. These alternatives might include:

  1. Having another principal in the company whose credit is good to make the application.

  2. Finding a co-signer – Many people have family members who have good credit ratings and resources that would help to qualify you for the necessary loan as a co-signer.

  3. You could pledge the company’s assets, your personal assets or even a combination of both to make the deal appear better in the eyes of a banker.

  4. You could take a second mortgage on your home or any other real property that you may have.

Government requirements are more forgiving than those in the private sector. Government programs are established for the welfare of the public, and the economy. 

Ask a Professional

You can contact local agencies directly for assistance and to have any questions that you may have about your present credit situation. Requirements can and do change on a fairly regular basis and what was the rule yesterday, may have changed today. The point is to never give up. Many of these programs were developed specifically with people and businesses that have less than stellar credit in mind. The government will work with you to ensure the survival of your fishery or any other company that you may have.