We are barraged with news on a daily basis about the US government’s various bailout plans and other financial stimulus packages geared to get the economy moving again. I have spoken to a number of DockMaster customers that were applying for various state sponsored grants and loans. I was curious about what was being offered, so the first thing I looked at is the much talked about ARRA.

Through the Small Shipyard Grant, the ARRA provides $100 million in supplemental grants for small shipyards. A “small” shipyard is defined as a yard in one geographic location that does not have more than 1,200 employees. These funds are available until September 20, 2010. This program is administered by the Maritime Administration (MARAD). The rub is that this fund is currently closed for 2009. Over 500 applications were received, requesting over $1.25 billion in aid. MARAD will contact successful applicants by August 17, 2009.

Boating Infrastructure Grant Program

The next program I ran across was the Boating Infrastructure Grant Program (BIG). This program provides grant funds to construct, renovate, and maintain tie-up facilities with features for transient boaters in vessels 26 feet or more in length, and to produce and distribute information and educational materials about the program.
The BIG Program includes two funding tiers, Tier One (non-competitive) and Tier Two (nationally competitive). Under Tier One each state, the District of Columbia and insular areas may receive funding for eligible projects up to $100,000 annually. Tier Two funds are made available through a nationally competitive process.

Since the states effectively administer the Tier One funds, the best place to look for these programs is on your state’s official website (e.g. http://www.dbw.ca.gov/Funding/BIG.aspx). The governmental agency designated by each respective governor is eligible to participate in the BIG Program. The agency may partner with local governments, private marinas and others to fund eligible projects.

Tier Two proposals received are reviewed, evaluated and ranked by a national panel with the final decision for funding made by the Director of the U.S. Fish and Wildlife Service. The ranking criteria, eligible projects and regulations are listed in 50 CFR 86. For more information go to: http://wsfrprograms.fws.gov/Subpages/GrantPrograms/BIG/BIG.htm

Small Business Administration: CDC/504

The Small Business Administration has a loan classification called the CDC/504 loan. This program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company (CDC) is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses.  There are about 270 CDCs nationwide, with each covering a specific geographic area.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. For more information check out: http://www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html