Fishing Licence and Vessel Loan Programs: What Expenses Are Eligible?

Fishing Licence and Vessel Loan Programs: What Expenses Are Eligible?

If you’re a commercial fisher in Nova Scotia, paying for a licence or vessel is often the biggest challenge to starting or growing your business. Provincial fishing licence programs and vessel loans can help with most of these costs. However, only certain expenses qualify. Knowing what’s eligible—and what isn’t—can save you time and help you build a stronger application from the beginning.

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Eligible Expenses Under Fishing Licence and Vessel Loan Programs

Nova Scotia offers two main financing programs through the Department of Fisheries and Aquaculture: the Fishing Licence Loan Program and the Vessel Loan Program. Both are repayable loans, not grants. Each program has its own rules about what expenses you can include.

Fishing Licence Loan Program: What You Can Pay For

The Fishing Licence Loan Program helps new and experienced commercial fishers get into the industry or branch out into new species.

Eligible expenses include:

• Purchase of a commercial fishing licence
  You can use the loan to buy a licence from another licence holder.
• Licence bundled with related gear
  Sometimes, the loan covers a licence that comes with gear directly tied to that licence.
• Diversifying into new species
  If you already fish commercially, you may use the loan to buy a licence for a new species.

Funding details:

• Covers up to 95% of eligible project costs
• Repayable loan
• Program status: Open
• Jurisdiction: Nova Scotia

What’s not eligible:

• Regular operating costs like fuel, bait, or insurance
• Vessel repairs or upgrades
• Working capital or paying off existing debt

If you’re not sure which expenses qualify, GrantHub’s eligibility matcher can help you sort programs by province and industry, making it easier to compare licence financing with other seafood-sector loans.

Vessel Loan Program: What You Can Pay For

The Vessel Loan Program helps fishers buy, build, or upgrade a fishing vessel used for commercial seafood operations.

Eligible expenses include:

• Buying a new or used fishing vessel
  Both new builds and used vessels are eligible.
• Building a new vessel
  The loan can cover approved vessel construction projects.
• Engines and propulsion systems
  You can finance replacement or upgraded engines.
• Equipment and electronics
  This includes navigation systems, onboard technology, and related electronics.
• Technical modifications
  Structural or technical changes needed for fishing operations or compliance are eligible.

Funding details:

• Covers up to 90% of eligible project costs
• Repayable term loan
• Program status: Open
• Jurisdiction: Nova Scotia

What’s not eligible:

• Licence purchases (these belong under the licence loan program)
• Crew wages and daily operating costs
• Personal or non-fishing vessels

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How These Two Programs Work Together

Many commercial fishers use both programs at different times. The Fishing Licence Loan Program lets you buy the legal right to fish. The Vessel Loan Program helps you pay for the boat and equipment you need to operate.

You can’t mix and match expenses between programs. For example, you cannot use a vessel loan to pay for a licence, and you can’t use a licence loan to pay for vessel upgrades.

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Common Mistakes to Avoid

1. Including operating costs in your budget
   Expenses like fuel, bait, and insurance are not eligible. Listing them can weaken your application.
2. Applying under the wrong program
   Licence purchases must go through the Fishing Licence Loan Program, not the Vessel Loan Program.
3. Expecting 100% financing
   Both programs require you to contribute part of the costs—5% for licences and 10% for vessels.
4. Not connecting expenses to fishing activities
   Only costs that are clearly linked to commercial fishing are eligible.

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Frequently Asked Questions

Q: Is the Fishing Licence Loan Program a grant or a loan?
It is a repayable loan. You must pay back the amount you borrow under the program’s terms.

Q: Can I finance a used fishing vessel?
Yes. The Vessel Loan Program covers both new and used vessels.

Q: Are engines and electronics eligible expenses?
Yes. Engines, onboard equipment, electronics, and technical modifications are all eligible under the Vessel Loan Program.

Q: Can I use the licence loan to cover vessel costs?
No. Vessel purchases and upgrades must be financed through the Vessel Loan Program, not the licence loan.

Q: Is there an application deadline?
Both programs are open. However, funding can change, so it’s best to apply early.

GrantHub tracks hundreds of current grant and loan programs across Canada. You can check which ones fit your fishing business profile.

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Next Steps

If you want to buy a fishing licence, a vessel, or both, start by listing each cost and matching it to the correct program. This makes your application clearer and helps you talk to lenders more confidently. GrantHub helps you compare fishing licence and vessel loan programs with other provincial and federal options, so you can choose what works best before you apply.

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See Also

• How Government Grants Interact with Loans and Equity Financing in Canada
• How to Use Business Advisory Programs to Prepare for Financing
• Is Purchase Order Financing Right for Your Business?