In the past approvals were granted to aid in the construction of: tankers, cargos, LNGs, Bulk/OBOs, integrated tug/barge units, drill rigs, drill service vessels, ocean tugs and barges, river tugs and barges, shipboard lighters, passenger vessels, ferries, and miscellaneous vessels and advanced and modern shipbuilding technology.
The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.
No applications were approved in fiscal year 2007. As of March 31, 2008, no applications have been approved in fiscal year 2008. There are no applications pending.
Uses and Use Restrictions
Guarantees are available to aid in financing of: (1) advanced shipbuilding technology and modern shipbuilding technology of a general shipyard facility located in the United States, and (2) vessels (including eligible export vessels) which are designed for research or for commercial use (a) in coastwide or intercostal trade; (b) on the Great Lakes or on bays, sounds, rivers, harbors, or inland lakes of the United States; (c) in foreign trade; (d) as an ocean thermal energy conversion facility or plantship; (e) as floating drydocks, or (f) with respect to an eligible export vessel, in world-wide trade.
Any vessel of not less than 5 net tons, (other than a towboat, barge, scow, lighter, car float, canal boat or tank vessel of less than 25 gross tons) is eligible.
An individual with the ability, experience, financial resources, and other qualifications necessary for the adequate operation and maintenance of a vessel or an eligible shipyard.
U.S. and foreign shipowners, or eligible U.S. shipyards.
Financial history, economic feasibility of project, operating history, citizenship of applicant. This program is excluded from coverage design and specification information under OMB Circular No. A-87.
Aplication and Award Process
Informal preapplication meeting is recommended.
This program is excluded from coverage under OMB Circular No.
This program is excluded from coverage under E.O.
Application Form MA-163 must be filed with the Office of Shipyards and Marine Financing, Maritime Administration, 1200 New Jersey Avenue, S.E., Washington, DC 20590. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110.
Final approval granted by the Maritime Administrator.
No guarantee will be entered into later than 1 year after the delivery of a new vessel or shipbuilding technology, except for refinancing to provide funds for additional vessel construction or to refinance existing obligations issued for the purposes contained in Title XI.
46 U.S.C. Ch. 537.
Range of Approval/Disapproval Time
After a complete application has been filed with all supporting documents, processing time is approximately 60 days.
Formula and Matching Requirements
The Act provides a limitation of 87 1/2 percent of the amount of "Actual Cost" which can be guaranteed. The remaining costs are to be provided by the applicant.
Length and Time Phasing of Assistance
Assistance provided as ship/shipbuilding technology is constructed and/or throughout life of ship/shipbuilding technology, but in any case not to exceed 25 years from vessel delivery or economic life of the assets being financed.
Post Assistance Requirements
Financial reports as per contract.
Annual reports regarding citizenship, no default certificates, vessel requirements.
See "Index of Current Regulations," Maritime Administration.
Financial reports as per contract. Annual reports regarding citizenship, no default certificates, vessel requirements.
(New loan guarantee commitments and administrative expenses) FY 07 $4,085,000; FY 08 $8,408,000; and FY 09 est. $0.
Range and Average of Financial Assistance
Historically projects have ranged from less than $1 million to several hundred million. (Average is not entered, because it would not be typical of the breadth of the program.)
Regulations, Guidelines, and Literature
46 CFR Part 298. Booklet entitled, "Federal Ship Financing Program."
Regional or Local Office
See Maritime Administration Regional Offices listed in Appendix IV of the Catalog.
Associate Administrator for Business and Workforce Development, Maritime Administration, Department of Transportation, 1200 New Jersey Avenue, S.E., Washington, DC 20590. Telephone: (202) 366-5737.
Criteria for Selecting Proposals
Projects which involve the construction, reconstruction or reconditioning of vessels in the United States and advanced and modern shipbuilding technology for a general shipyard facility are eligible for Title XI financing. In order to receive approval, applicants must possess the necessary ability, experience, financial resources and other qualifications. The financial resources necessary for the project are determined by the project's costs and the financial position and resources available to the applicant. Additionally, all projects must be determined to be economically feasible before approval can be granted. Applications are generally processed with a view towards accommodating the time frame of each and every applicant.
Morgan Simon, Pi Investments and Transform Finance, explains the concept of impact investment that supports economic and community development. Simon notes that this concept, while gaining attention from varying financial contenders, is an exciting, but potentially problematic trend seen over the last decade.