Licenses and gear loans allow new fishers to join the industry or established fishers to expand or diversify operations. It is available to new entrants, commercial fishers or clients looking to re-enter the industry.
The Licenses & Gear Loan comes with all the flexibility of other loans. Repayment can be amortized over any period from 1-20 years. We understand that the cost of licensing and gear has become more expensive in recent times. We also know that they are a long term investment, so we want to help by allowing you to include these purchases in your long-term loan.
A client can select fixed rate full term financing with interest rate stability for the full amortization of the loan. Or they can assume some interest rate risk and benefit from the three fixed term rates available with the selected amortization period. The three term rate periods of 3, 5, and 10 years allow a client the opportunity to potentially have competitive rates during the selected term. At the end of the term the rate is reset based on current interest rates at the time of renewal.
Licenses and Gear loans are primarily secured through a General Security Agreement, where the claim over the licenses is acknowledged by the Licensing department with Fisheries and Oceans Canada.