Fisheries Interest Relief Program
The ‘term debt’ interest relief program will provide assistance to PEI fish harvesters. This new interest relief program will provide relief for qualified applicants that meet the eligibility noted below. Additionally, clients that currently have their debt with Finance PEI will be eligible to defer their principal payments for a 12 month period upon request.
The total obligation of the Government of Prince Edward Island under the Fisheries Interest Relief program will not exceed twelve million, five hundred thousand dollars ($12,500,000). The Government of Prince Edward Island reserves the right to pro-rate payments at any point during the program should the total interest rebate/claims from the cumulative fishers exceed twelve million, five hundred thousand dollar ($12,500,000).
Eligible applicants must be a PEI Resident (supported by 2018 or 2019 personal tax returns) 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;
Eligible harvesters must meet the following criteria:
- Must provide documentation to validate debt is with a financial institution (i.e. related party debt is not eligible for interest relief);
- Must provide documentation to validate debt was incurred for the purpose of earning income on PEI for fishing activities.
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 provincial central default registry.
What are the program details?
Fisheries Interest Relief Program is being administered by Finance PEI on behalf of the Department of Fisheries and Communities, where the Department of Fisheries and Communities will reimburse interest expense incurred to a maximum of 12 months that is owing or owed by PEI fish harvesters for existing term debt (lines of credit are excluded) with their financial institutions (i.e. chartered bank, credit unions and Finance PEI).
Interest reimbursement will be calculated at the time the fish harvesters 2020 scheduled loan payment are due. More specifically, if the fish harvester scheduled loan payment is July 15th; the PEI fish harvester will be eligible for interest relief for the 12 month period prior to July 15th. This program will not rebate interest costs for the period after the loan payment are scheduled.
- Interest relief is only eligible for ‘term debt’ directly related to fishing activities, and held with a financial institution (i.e. chartered banks, Credit Unions, BDC and FPEI/PEI Century Fund). For greater clarity, the program excludes revolving credit (i.e. lines of credit and related party debt).
- The program will provide interest relief on term debt incurred on or before May 1, 2020 (The program will not exceed twelve months).
- Fish harvesters with loans through Finance PEI will also qualify for principal payment deferral for a 12 month period upon request.
What is the process to apply?
Fish harvesters will apply at the end of their fishing season for their primary species.
- Financial reporting to include the applicant providing their 2020 fish broker statement to validate their fish activities;
- Finance PEI reserves the right to offset any interest relief eligibility against other amounts owing to either Finance PEI or the Department of Fisheries and Communities;
- Harvesters/operators who provide false or misleading information to obtain access to this program will be subject to full repayment with interest, plus any other penalties as deemed appropriate by the agency or authorities.
You will need to provide the following information in the web-form:
- Annual revenue information
- Shareholder, partner information
- Existing financing information
You may upload the following documentation to the web-form:
- Fisher statement from processor or buyer
- Term debt agreements with financial institutions (including, but not limited to, loan documents) confirming interest rates and the related purpose of the term debt
- Pre-Authorization for Credit Transactions (Company Void Cheque or Direct Deposit Banking Information)
- 2018 or 2019 Personal Tax Returns - T1 and Statement of Fishing Activities
- Latest Monthly Interest Statement from the financial institution
The closing date for applications is March 31, 2021.
What is the payment process?
Upon approval of an application under the Fisheries Interest Relief Program, Finance PEI and the Department of Fisheries and Communities will process payment of interest relief on approved claims.
How do I apply?
Click the 'Apply Now' button below.
For information about interest relief, contact firstname.lastname@example.org
This program is a joint partnership of Finance PEI and the Department of Fisheries and Communities.