Loan Programs

Commercial Fishing Loan Fund

Engine Fuel Efficiency Upgrade

Select either Section A or B
Purpose of the upgrade must be to improve the fuel efficiency of the propulsion engine or generator engine replacement on an existing vessel.

Section A

Eligibility

• 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 outstanding balances on all loans made under Section A of the Commercial Fishing Loan Program may not exceed $400,000.
• Total outstanding balances on all Section A and Section B loans 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 economic opportunities in area of residence other than commercial fishing;

and

• Applicant does not have other sources of financing available.

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 outstanding balances on all loans made under Section B of the Commercial Fishing Loan Program may not exceed $200,000.
• Total outstanding balances on all Section A and Section B loans 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 to pay all direct costs incurred in processing an application including surveys, inspections, appraisals, title insurance, etc.

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.

Engine Fuel Efficiency Upgrade Loan Application Package

A separate application and fee is required for each type of loan.

The following Commercial Fishing Engine Fuel Efficiency Upgrade Application is PDF format. You will need Adobe Reader in order to view/print them. Acrobat Reader is distributed freely and available for download from Adobe®.

The Division of Investments, 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 Investments at (907)465-2510 or TDD (907)465-5437 to make any necessary arrangements.