Tax Obligation - Section D
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Eligibilty
- At least 25% of applicant's total gross income for past 2 years was from Alaska commercial fishing;
or
Applicant lacks training or economic opportunities in area of residence other than
commercial fishing and applicant does not have other sources of financing available;
- Loans may be made to satisfy past due Federal Tax Obligations;
- Applicant must have filed all past and current federal tax returns and have executed an agreement
with the IRS for repayment of any past due tax obligations;
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Lending Limit
- The total balances outstanding on all loans under Section D of the Commercial Fishing Loan
program may not exceed $35,000.
- The total balances outstanding on all loans made under the program may not exceed $400,000.
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Collateral Requirements
- Generally, the maximum loan amount for a loan secured by a limited entry permit is 80%
of the market value (as valued by the Commercial Fisheries Entry Commission).
- The maximum loan amount may be increased by offering additional collateral.
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Terms and Conditions
- Interest rate is 2% above the Prime Rate, not to exceed 10.5%, not less than 3%, fixed at the time of loan approval.
- Maximum loan term is 15 years.
- Borrower is responsible to pay all direct costs incurred in processing an application.
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Fees
- A $100 application fee must accompany all applications.
- An orgination fee of 1% of the loan amount will be deducted from your loan proceeds at closing.
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Tax Obligation Loan Application Package
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