Loan Programs

Commercial Fishing Loan Fund - Section C

Purchase of Quota Shares

Eligibility

• Held limited entry permit, commercial fishing or crew license for 2 of the past 5 years;

and

• Fished in Alaskan waters during qualifying years;

and

• Qualify as transferee for quota shares;

and

• Not eligible for financing from a recognized commercial lender to purchase quota shares.

Lending Limit

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

Collateral Requirements

• Generally, the maximum loan amount for a loan secured by quota shares is 80% of the purchase price.
• 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.
• Prequalification Fee - $200.00. If you have not located quota shares to purchase, you may want to obtain conditional approval by submitting a prequalification application.
  
  The following are some advantages to prequalification:
  • You know your loan limit
  • Seller is assured of a qualified buyer
  • Faster loan processing after finding the quota shares
  • Loan funds are committed
  • Approval is valid for 60 days
• An origination fee of 1% of the loan amount will be deducted from your loan proceeds at closing.

Purchase of Quota Shares - Section C Loan Application Package

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

The following Commercial Fishing Purchase of Quota Shares Application pages are in 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.