Fisheries Emergency Loan
The Fisheries Emergency Loan program will provide funding in the form of a repayable loan to qualified applicants. Interest payments on loans approved through this program will qualify for interest relief (interest payments will be made on behalf of the client) from the Department of Fisheries and Communities for a period of 18 months with Finance PEI offering principal deferrals to match the same 18 month period.
Eligible applicants must be a PEI Resident (supported by 2018 personal tax returns if required) and must also demonstrate its operations are on PEI and within one of the following sectors:
- Rock crab;
- Clams and quahogs;
- Oysters and other aquaculture.
Businesses that are in the process of receivership as per the Canada’s Bankruptcy and Insolvency Act, or have been so in the past, are not eligible for this program.
The applicant has a satisfactory credit rating and must not have any defaulted outstanding debt obligation on file in the Province’s Central Default Registry.
What are the program details?
- The maximum individual loan will not exceed $25,000 under this program (based on the cumulative ownership of businesses under common control as defined by the Canadian Income Tax Act);
- Applicants must acknowledge that the funds from this loan shall only be used to pay non-deferrable operating expenses including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service and may not be used to fund any payments or expenses such as loan prepayment/refinancing of existing indebtedness, payments of dividends and/or distributions and increases in management compensation. Further, applicants must acknowledge their intention to continue to operate the business or to resume operations;
- Principal loan repayment will be deferred for a maximum of eighteen (18) months from the 1st disbursement;
- Approved loans will have a 5 year term using 4% as the interest rate;
- Department of Fisheries and Communities will pay the first eighteen (18) months’ interest payments from the date of 1st disbursement for loans approved under this program to Finance PEI.
Loan approval process is subject to:
- Normal lending due diligence and lending practices of Finance PEI will apply;
- Loan will be secured by best available position on the fishing license, vessel and personal guarantees (guarantees exclude primary personal residence);
What is the process to apply?
You will need to provide the following information in the webform:
- Business information (HST number, if applicable)
- Annual revenue
- Shareholder, partner information
- Existing Financing information
You will need to upload the following documentation to the webform.
- Current "Statement of Personal Financial Affairs Form" for all shareholders and any proposed third party guarantors
- Fishers statement from processor/buyer for 2019 and 2020 (If applicable)
- Interim income and expense statement for current year to date
- Pre-Authorization for Credit Transactions (Company Void Cheque or Direct Deposit Banking Information)
Each file can be up to 1 MB, read Resizing Photos for Online Applications for assistance.
Successful applicants will be issued a letter of offer outlining the complete terms and conditions of the loan from their account manager.
The closing date for applications is June 30, 2021.
What is the payment process?
- Interest will be charged at 4%.
- Following the eighteen (18) month period of interest payments provided by Department of Fisheries and Communities and the deferral of principal for the same 18th month period, the approved client will then be responsible for both the interest and principal payments on this loan on a go forward basis until maturity.
How do I apply?
This program is now closed.
For information about program contact: firstname.lastname@example.org.
Total interest relief for this program to be issued by the Department of Fisheries and Communities will not exceed $2.4M over the 18 month period for this program.
This program has been developed in conjunction with the Department of Fisheries and Communities and Finance PEI to assist PEI fish harvesters.