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Fishers Low Interest Loan Program

On February 5, 2014, the provincial government expands the low-interest loan program for fishers to include the western fishery in LFA 25.

The Fishers Low Interest Loan Program began in 2007 and has been reopened as of August 13, 2013. The purpose of the program is to assist Prince Edward Island fishers experiencing financial difficulties due to rising costs, low landings in some areas and market conditions that have resulted in low shore prices for lobsters. The Fishers Low Interest Loan Program is a joint initiative of the Department of Fisheries, Aquaculture and Rural Development, and Finance PEI. Loans under the program will be administered by Finance PEI. Eligible applicants will be provided loans at a 4 per cent interest rate for the first 7 year term of the loans.

Eligibility:

Fishers eligible under this program must:

  1. Hold a valid Prince Edward Island based lobster license during the 2013 fishing year.
  2. Have a net cash position less than $40,000 per annum, based upon the information contained in the Statement of Fishing Activities as reported in the in 2013 income tax filing.
  3. Existing clients of Finance PEI are eligible for participation in the program upon presentation of any necessary documentation; however, loans approved under the previous Fishers Low Interest Loan Program are not eligible.

Guidelines:

  1. Eligible expenses, which can be consolidated under this program, must be attributable to the fishery. Any debt, which is clearly identifiable as consumer debt, and not related to the fishery, will be deemed ineligible for this program.
  2. Applicants can apply based on their 2013 income tax return.
  3. Loan proceeds under this program cannot be used for capital acquisition, or to acquire licenses. Only fishing-related assets purchased prior to August 31, 2013 will be considered.
  4. All loan assessments will be completed in accordance with Finance PEI’s normal due diligence practices for loan adjudication.
  5. The maximum loan amount under the program will be capped at $200,000 for fishers in lobster fishing area 26A and $300,000 for fishers in lobster fishing area 24. The term of the loans will be 7 years with a maximum amortization period of 15 years.
  6. Finance PEI will require a first security interest over all fishing related assets and power of attorney over all fishing licenses. Other security deemed necessary by Finance PEI may be required.
  7. Loans will be provided at an interest rate of 4 per cent for the initial 7 year term of the loan. At maturity of the initial 7 year term, the loans will be renewed, at Finance PEI’s discretion, at the current 5 year fixed rate being offered at that time.
  8. In any matter of difference between Finance PEI and the applicant, Finance PEI may consult the Department of Fisheries, Aquaculture and Rural Development.  The decision of Finance PEI will be final.
  9. The deadline for applications will be June 30, 2014.

Application Fee:

There is an application fee representing the greater of $250.00 or 1/2 of one per cent of the amount of the loan proposed.

Forms

Application for Financial Assistance
  (PDF)     
Business Plan
  (PDF)     
Credit Verification Form
  (PDF)     
Statement of Personal Financial Affairs
  (PDF)     

General Contact Information

Name : 
Commercial and Resource Lending 
Address : 
98 Fitzroy Street, 2nd Floor
Charlottetown, PE
C1A 1R7
Telephone:
902 368 6200
Facsimile:
902 368 6201
Email:
financepei@gov.pe.ca

Website:
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