Eligibility Requirements

The Maritime Administrator will consider approval of all Federal Ship Financing Program obligation guarantees meeting the following criteria:

Obligors

Obligors must –

  • Be an individual, corporation, partnership, or other business formation that is U.S. organized, domiciled and recognized as a U.S. citizen, except for export transactions, except for export transactions.
  • Exhibit sufficient operating experience and ability to operate the vessels or employ the new shipyard technology on an economically sound basis.
  • Exhibit creditworthiness and the ability to repay guaranteed debt according to its terms, keep a positive working capital balance and an aggregate debt level at no more than two times its net worth.

Vessels

Generally include commercial vessels such as ferries, bulk, container, cargo, tankers, tugs, towboats, barges, dredges, oceanographic research, floating power barges, offshore oil rigs and support vessels, and floating drydocks. The focus of the program is on new construction, but projects for reconstruction and/or reconditioning of existing vessels to improve efficiency and extend useful life, such as repowering to use liquefied natural gas for propulsion, may also be considered.
The Vessel must –

  • Meet the American Bureau of Shipping standards or other such standards approved by the U.S. Coast Guard or, in the case of an eligible export vessel, standards imposed by an International Association of Classification Societies member to be ISO 9000 series registered or other standards acceptable to the Maritime Administration.
  • Have its design and engineering approved by the Maritime Administration. And
  • Document compliance with the Cargo Preference Act requirements for foreign materials and components included in construction.

Eligibility determination may also include-

  • Export country political and ware risks.
  • Other U.S. public policy benefits. And
  • Risk concentration assessment.

Shipyards

Are limited to privately-owned, general shipyard facilities in the U.S. designed for construction, reconstruction, repair, rehabililitation, or refurbishment of vessels.  Floating drydocks, barges, or vessels which are used for vessel construction, reconstruction, repair, rehabililitation, or refurbishment are also eligible.
The Project must –

  • Demonstrate economic soundness.
  • Provide U.S. public policy benefits such as increase employment, new job creation, energy efficiency, carbon emission reduction, or serve other U.S. Executive Branch, Department of Transportation, or Maritime Administration public policy goals and objectives.
  • Enhance shipyards productivity and quality, where the Program will support investment in new technology, generally proven technology, techniques and processes. Or, novel techniques and processes designed to improve shipbuilding and related industrial production which advances the U.S. shipbuilding state-of-the-art.

Eligibility determination may also include-

  • Export country political and ware risks.
  • Other U.S. public policy benefits. And
  • Risk concentration assessment.