Aquaculture Working Capital Loan Guarantee Program

Overview of the Aquaculture Working Capital Loan Guarantee Program program:

The objective of the program is to assist in increasing the production of commercial aquaculture products in the province, from both hatcheries and marine sites, thereby increasing employment, and spin-off opportunities in the processing, manufacturing, supply, and service sectors, primarily in rural Newfoundland and Labrador.

Benefits of the Aquaculture Working Capital Loan Guarantee Program program:

• Eligible project activities under the program include:
• Knowledge transfer and information sharing
• (training and travel costs)
• Technology transfer and/or research
• Commercialization (training and travel costs)
• Research stage or early commercial
• Demonstration of production systems
• Materials and equipment
• Environmental characterization of a locations
• Water and/or substrates to support species
• Cultivation

Eligibility criteria of the Aquaculture Working Capital Loan Guarantee Program program:

• The applicant must be currently involved, or
• Proposing to become involved, on the commercial scale the production of shellfish or finfish at a Newfoundland and Labrador site is approved by the Department of Fisheries, Forestry and Agriculture.
• The applicant must provide a business plan that includes information as requested by the Government in its Business Plan Guidelines.
• The applicant must clearly demonstrate, through its business plan, a strong potential for sustainable employment opportunities, incremental production and increased sales, and long-term commercial viability.
• The applicant must clearly demonstrate, to the satisfaction of the Government, a definite need for Government financial assistance by way of an equity investment; that the equity investment is complementary to, and levers to the maximum extent possible, other sources of financing; and that the project could not proceed on a commercially viable basis without Government participation.
• The applicant must have all necessary licenses and regulatory approvals, to the satisfaction of the Government.
• The applicant must be in good financial and legal standing with the Government.
• The applicant must clearly demonstrate that management has the required technical, financial, marketing, and managerial expertise for the operation of a commercial-scale aquaculture enterprise.
• The applicant, if an existing operator, must have, at the date of application, a minimum private sector equity position equivalent to 20% of its total assets, evidenced by externally prepared (minimum review engagement) financial statements for the last fiscal year, updated to the date of application, if requested. If the enterprise is a new operation, the applicant must have a private-sector equity investment equivalent to 20% of the total program costs.
• Participation in the proposed program would not preclude consideration under the Aquaculture Working Capital Loan Guarantee Program.