Fishers Low Interest Loan
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 loan 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 is a joint initiative of the Department of Fisheries, Aquaculture and Rural Development, and Finance PEI. Loans 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.
Do I qualify?
Fishers eligible under this program must:
- Hold a valid Prince Edward Island-based lobster license during the 2014-fishing year.
- Have a net income on a cash basis for tax purposes of less than $40,000 per year, based on the information contained in the Statement of Fishing Activities, as reported in their 2014 income tax filing.
- Current 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.
- 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 2014 income tax return.
- Only fishing-related assets purchased before August 31, 2014 are allowed. Buying of capital and licenses is not allowed.
- All loan assessments will be reviewed with Finance PEI’s normal best practices for loan consideration.
- For fishers in lobster fishing area 25 and 26A, the maximum loan amount under the program is $200,000. For fishers in lobster fishing area 24 the maximum loan amount is $300,000.
- 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.
- Loans will be provided at an interest rate of 4 per cent for an 8-year term. At maturity, loans are renewed 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 Agriculture and Fisheries. The decision of Finance PEI will be final.
- The deadline for applications is June 30, 2016.
The application fee is equal to $250.00 or ½ of one per cent of the amount of the loan, whichever is greater.