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Loan Programs

Community Quota Entity (CQE)

Loan Purpose

  • To provide long-term, low interest loans to Community Quota Entities for the purchase of halibut and sable fish quota shares through the National Marine Fisheries Service program, and then lease the quota back to local resident fishermen.

General Requirements

  • Community Quota Entity (CQE) is certified by National Marine Fisheries Service (NMFS) and is eligible to hold Quota Shares.
  • CQE is in good standing with the State and Federal Government.
  • CQE is not eligible for financing from other recognized commercial lending institutions.

Program Requirements

  • Purchases – Loans are available to CQEs for the purchase of Quota Shares and reimbursement of Quota Share purchases less than 12 months from the date the application is received.
  • Collateral – The item being financed will be held as the collateral for the loan. Generally, a priority lien must be obtained. The maximum loan amount for a loan secured by Quota Shares is 80% of the purchase price. Other types of collateral may also be offered to reduce the down payment requirement.

Terms and Conditions

  • Maximum loan is $2 million for each eligible community. The total outstanding balances on all loans under CQE may not exceed $2 million.
  • Maximum loan term is 15 years.
  • Interest rate will be fixed at the time of loan approval. Current Interest Rates

Fees

  • A $100 nonrefundable application fee must be submitted with the completed application, if you have located the shares you wish to purchase.
  • A $200 pre-qualification application fee must accompany all applications, if you have not located Quota Shares to purchase, but wish to obtain conditional approval by submitting a pre-qualification application. The following are some advantages of pre-qualification:
    • You know your loan limit;
    • Seller is assured of a qualified buyer;
    • Faster loan processing after finding the quota shares; and
    • Pre-qualification approval is valid for 60 days.
  • A 1% origination fee is due at closing.
  • Borrower is responsible for all direct costs incurred in processing an application including surveys, inspections, appraisals, title insurance, etc.

Community Quota Entity Loan Application Package

The following Community Quota Entity Loan 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®.

Loan Application

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.