"An Act relating to the commercial fishing loan program; and providing for an effective date. "
"This bill is a product of my philosophical belief that government should not compete with the private sector."
- Rep. Coghill
This bill is a product of my philosophical belief that government should not compete with the private sector. I want to make sure that any loan program the State administers is the source of last resort.
This bill would require someone applying for a loan through the Commercial Fishing Resolving Loan Fund (CFRLF) for repair, restoration, or upgrading of vessels and gear, for the purchase of entry permits and gear, and for construction and purchase of vessels to be ineligible for financing from other recognized commercial lending institutions. While the division currently utilizes this practice I want it codify it to make it a permanent statutory requirement.
HB 304 reduces the amount of loans for refinancing a debt to $200,000 per person, down from $300,000. It increases the loan limit for past due federal tax obligations to $35,000. And it limits all loans, including purchase of entry permits and gear, vessel purchases, repair of existing vessels, and federal tax debt for one person to $335,000. The bill reduces security of a loan from 90% to 80% of the appraised value of the collateral. It adjusts the interest rate to the prime rate plus two percentage points. The interest rate currently is a maximum of 10.5%
This bill has been a work in progress. I have been working with the department diligently for the last year to clarify and tighten requirements in the Commercial Fishing Revolving Loan Program.