Commercial Fishing Revolving Loan Program
Administrative Agency:
State Agency: Department of Commerce, Community and Economic Development (DCCED), Division of Investments (DOI)
Program Goals:
To promote the rehabilitation of the state's fisheries, the development of a predominantly resident fishery, and the continued maintenance of commercial fishing gear and vessels throughout the state by means of long-term low interest loans.
Resource Provided:
Purchases: Loans are available for limited entry permits, quota shares, vessels, gear, or Community Quota Entity (CQE) quota shares. Loans are also available for the purchase or upgrade of gear or for the upgrade of vessels, including commercial fishing and tender vessels and engine fuel efficiency upgrades or to improve the quality of seafood.
Refinancing: Vessel or gear loans made by other lenders, at least 1-year from date of original loan.
Collateral: The item being financed (limited entry permit, vessel, etc.) will be the collateral for the loan, and, generally, a priority lien must be obtained.
Eligibility:
-Alaska Resident for the past 2 years
-No past due child support obligation(s)
-In a Community Quota Entity community
Alaska Program Status:
As of June 2009, there were 1,613 loans valued at $65.0 million.
Comments:
Terms and Conditions: Interest rate is 2% above the prime rate or 2% below the prime rate for product quality improvement loans, not to exceed 10.5%. Interest rate will be fixed at time of loan approval. There is a $100 application fee and a 1% origination fee due at closing.
Maximum loan term is 15 years.
Borrower is responsible to pay all direct costs incurred in processing an application, including surveys, inspections, appraisals, title insurance, etc.
Program Contact: (Primary Contact listed first.)