Federal Ship Financing Guarantees
To provide competitive financing through the issuance of guarantees of debt issued for the purpose of financing or refinancing the construction, reconstruction or reconditioning of vessels built in United States shipyards and guarantee obligations for advanced shipbuilding technology and modern shipbuilding technology of a general shipyard facility located in the United States to stimulate commercial ship construction for domestic and export sales, encourage shipyard modernization, and support increased productivity.
General information about this opportunity
Last Known Status
Maritime Administration, Department of Transportation
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
Fiscal Year 2016
In 2016 authority to guarantee over $9.58 billion of new guarantees. In FY 2016, a commitment to guarantee $373.7 million was approved for mortgage period financing to construct two Jones Act qualified LNG powered ConRo vessels.Fiscal Year 2017
In 2017 authority to guarantee over $9.6 billion of new guarantees.Fiscal Year 2018
In 2018 authority to guarantee over $9.6 billion of new guarantees.Fiscal Year 2019
In 2019 authority to guarantee over $9.2 billion of new guarantees.
Federal Credit Reform Act, 46 U.S.C. 537
Who is eligible to apply/benefit from this assistance?
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.
What is the process for applying and being award this assistance?
Preapplication coordination is required. Informal preapplication meeting is recommended. This program is excluded from coverage under OMB Circular No. A-102.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Application Form MA-163 must be filed with the Office of Marine Financing, Maritime Administration, 1200 New Jersey Avenue, S.E., Washington, DC 20590.
Final approval granted by the Maritime Administrator.
Approval/Disapproval Decision Time
The Maritime Administration is required to approve or deny an application within two years of receiving a signed application. The deadline may be extended up to two years by applicant.
How are proposals selected?
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.
How may assistance be used?
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 intercoastal 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.
What are the requirements after being awarded this opportunity?
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, nonfederal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503 See "Index of Current Regulations," Maritime Administration.
Financial reports as per contract. Annual reports regarding citizenship, no default certificates, vessel requirements.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
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. Guarantee of private-sector debt.
Who do I contact about this opportunity?
Regional or Local Office
See Maritime Administration Regional Offices listed in Appendix IV of the Catalog.
David M. Gilmore
1200 New Jersey Avenue, S.E.
Washington, DC 20590 US
(Guaranteed/Insured Loans) FY 18$0.00; FY 19 est $365,000,000.00; FY 20 est $0.00; FY 17$394,501,000.00; FY 16$3,135,000.00; - (Salaries) FY 17 $3,94,501,000; and FY 18 413,000,000, FY 19 $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."
Examples of Funded Projects
Fiscal Year 2016
In FY 2016 a guarantee is expected to be approved for mortgage period financing to construct two Jones Act qualified LNG powered ConRo vessels. In FY 2016, a commitment to guarantee $373.7 million was approved for mortgage period financing to construct two Jones Act qualified LNG powered ConRo vessels.Fiscal Year 2017
3000000Fiscal Year 2019
Two container vessels for operation in the continental U.S. to Hawaii liner trade.