Economic Soundness

Economic soundness and the applicant’s ability to repay the guaranteed debt are the primary consideration for approval of a proposed project. An applicant must demonstrate the following requirements:

Need in the particular segment of the maritime industry for new or additional capacity
Market potential for the employment of the vessel or utilization of the shipyard over the term of the guaranteed debt
Projected revenues and expenses associated with the employment of the vessel or utilization of the shipyard
Charters, contracts, agreements, or undertakings which are relevant to the employment of the vessel or utilization of the shipyard
Need for technical improvements such as increased fuel efficiency or improved safety (for inland waterway projects)
Any other information believed to be relevant to the project