The residents of Bristol Bay have applied for fishing permit loans through the Alaska Commercial Fishing and Agriculture Bank but were denied. Now BBEDC has started the process of accepting the applications on April 28 for a new fishing permit loan programme. The main aim of this programme is to help applicants with fixable flaws, such as lack of funds for down payments or a lack of substantial credit history, obtain a fishing permit.
It is told that the programme is the result of the effort between the corporation and the Bristol Bay Native Association to get fishing permits back into the hands of Bristol Bay residents, which in turn should boost local economies across the region. According to the programme the permit holder will get a lower down payment of 5 percent, extends the loan period from 12 to 15 years. It also offers annual interest payment subsidies and a sweat equity agreement, which reduces loan principle by 30 percent for the next seven years. After seven years they still receive the interest subsidy but will be required to make the rest of the payment on their own.
This programme is only for the residents of Bristol Bay as it ensures the economic impact of the permit reach local communities. The three-year experience requirement ensures that the people who obtain the permit aren’t getting into a career they don’t comprehend or enjoy. There are disqualifying factors such as bad credit or overdue child support or IRS payment.
Alice Ruby, the corporation’s economic development and brokerage coordinator, said that the main purpose that the permit subsidies are needed now is because permit prices have grown beyond what the younger generation of Bristol Bay residents can afford. According to Ruby the problem is that because of the economic conditions in the region, it’s difficult for some residents to get access to the capital that is needed for those permits.
