Fishers Low Interest Loan
Due to the current economic situation, the provincial government has re-opened the low interest loan program for fishers.
The purpose of this loan program is to assist Prince Edward Island fishers experiencing financial difficulties due to the uncertainty surrounding the global markets for this product. The Fishers Low Interest Loan program is a joint initiative of the Department of Fisheries & Communities and Finance PEI. Loans will be administered by Finance PEI. Eligible applicants will be provided loans using a 4 per cent interest rate for a 5 year term, amortized over a 15 year period.
Do I qualify?
Fishers eligible under this program must:
- Hold a valid Prince Edward Island-based lobster license during the 2020 fishing year.
- Have a net income on a cash basis for tax purposes of less than $60,000 per year, based on the information contained in the Statement of Fishing Activities, as reported in their 2019 or 2020 income tax filing.
- Current clients of Finance PEI are eligible for participation in the program.
- Only debt that is related to fishery is eligible for this program. Personal expenses and debt will not be considered.
- You can apply based on your 2019 or 2020 income tax return.
- Only fishing-related assets purchased before April 1st, 2020 will be considered as eligible expenses.
- All loan assessments will be reviewed with Finance PEI’s normal best practices for loan consideration.
- This program is open for fishers in lobster fishing area 24, 25 and 26A, to a maximum loan amount of $500,000.
- Finance PEI will require a first position security interest over all fishing-related assets including all fishing licenses. Other security deemed necessary by Finance PEI may be required.
- Loans will be provided at an interest rate of 4 per cent for a 5 year term amortized over a 15 year period. At maturity, loans are will be considered for renewal at Finance PEI’s discretion, at the conventional Finance PEI interest rates.
- In any matter of difference between Finance PEI and yourself, Finance PEI may consult the Department of Fisheries & Communities. The decision of Finance PEI will be final.
- The deadline for applications is July 31st, 2022 at which time the program may be re-evaluated for further consideration.