What are the terms?
- The loan cannot exceed 80% of total approved project costs up to a maximum loan of $300,000. A higher limit may be considered for larger projects.
- Loan will be interest-free for up to 24 months after date of first disbursement of funds to applicant. During the period between 24-48 months, interest is capitalized at the All-In Provincial Government Borrowing Rate plus 1%.
- A government administration fee of 1% of the loan amount, up to a maximum of $5,000, will be deducted from the first disbursement of funds.
- Loan instalments will be paid as follows:
- 50% at approval of application
- 25% after verification of substantial completion of the project by a Fisheries & Aquaculture Loan Board (FALB) inspector
- 25% after verification of completion of the project by FALB inspector
- Payoffs of all outstanding amounts on the loan must be received by NSED within 48 months of the first disbursement of funds, or upon the closing of sale of the boat, whichever comes first.
- Once repayment of all loaned money has been made, NSED will request FALB to release the mortgage and guarantees.
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