Loan Programs

Commercial Fishing Loan Fund

Product Quality Improvement

Select either Section A or B
Purpose of the upgrade must be to improve the quailty of the seafood.


Section A

Eligibilty

  • Held limited entry permit, commercial fishing or crew member license for the year preceding date of application and 2 other years out of the past 5 years;
  • and

  • Fished in Alaskan waters during qualifying years.

If you receive a loan under Section A, you will not be eligible for future loans under section B unless the loan requested under Section A was for engine fuel efficiency or the purchase of a limited entry permit.


Lending Limit

  • The total balances outstanding on all permit loans made under Section A of the Commercial Fishing Loan program may not exceed $300,000.
  • The total balances outstanding on all loans made under the program may not exceed $400,000.

Section B

Eligibility

  • At least 25% of applicant's total gross income for past 2 years was from commercial fishing;
  • or

  • Applicant lacks training or employment opportunities in area of residence other than commercial fishing;
  • and

  • Applicant is not eligible for financing from a recognized commercial lender.

Section B applicants may not have received a prior loan under Section A unless the loan requested under Section A was for engine fuel efficiency or the purchase of a limited entry permit.


Lending Limit

  • The total balances outstanding on all permit loans made under Section B of the Commercial Fishing Loan program may not exceed $200,000.  All other loans made under Section B of the Commercial Fishing Loan Program may not exceed $100,000.
  • The total balances outstanding on all loans made under the program may not exceed $400,000.

Sections A & B

Collateral Requirements

  • Generally, the maximum loan amount for a loan secured by a documented vessel is 75% of the survey value (65% for AK vessels).
  • The maximum loan amount may be increased by offering additional collateral.

Terms and Conditions

  • Interest rate will be fixed at the time of loan approval. Current Interest Rates 
  • Maximum loan term is 15 years.
  • Borrower is responsible for all direct costs incurred in processing an application.

Fees

  • A $100 application fee must accompany all applications.
  • An origination fee of 1% of the loan amount will be deducted from your loan proceeds at closing.

Product Quality Improvement Loan Application Package

There are different pages 1 and 2 for each different type of loan (limited entry permit, vessel purchase, etc.). If you are applying for more than one type of loan, complete pages 1 and 2 for each type of loan, then complete one set of pages 3 through 13. A separate application fee is required for each type of loan.

The following Commercial Fishing Product Quality Improvement Application pages are in PDF format. You will need the Adobe Reader in order to view/print them. Acrobat Reader is distributed freely and available for download from Adobe®.

Loan Application

The Division of Economic Development, Department of Commerce, Community, and Economic Development complies with Title II of the Americans with Disabilities Act of 1990. This publication is available in alternative communication formats upon request. Please contact the Division of Economic Development at (907)465-2510 or TDD (907)465-5437 to make any necessary arrangements.