** The website is being updated to reflect recent changes to the Federal Vessel Financing Program in accordance with the National Defense Authorization Act signed on December 20, 2019.
The program office is implementing explicit statutory requirements relative to changes in eligibility and the use of Federal Financing Bank (FFB) as the Preferred Lender. **
The Federal Ship Financing Program (commonly referred to as "Title XI" based on the part of the Merchant Marine Act of 1936 that established the program) provides for a full faith and credit guarantee by the United States Government to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards. Through long-term debt repayment guarantees, the Program encourages U.S. shipowners to obtain new vessels from U. S. shipyards cost effectively. It also assists U.S. shipyards with modernizing their facilities for building and repairing vessels. The repayment term allowed under the program generally is much longer, and the interest rates are lower, than those available from the commercial lending market because of the obligations guaranteed by the U.S. Government.
Statutes and Regulations
Under the Federal Credit Reform Act of 1990, appropriations to cover the estimated costs of a project must be obtained prior to the issuance of any letter of commitments for debt guarantees. The links below will direct you to the U.S. Code of Statute: 46 USC Chapter 537: LOANS AND GUARANTEES and U.S. Code of Federal Regulations (CFR): 46 CFR 298: OBLIGATION GUARANTEES.
- U.S. Code of Statute: 46 USC Chapter 537: LOANS AND GUARANTEES
- U.S. Code of Federal Regulations (CFR): 46 CFR 298: OBLIGATION GUARANTEES
How to Apply
To apply for vessels, fill out the application form that may be found here for shipyard modernizations. Prior to filing the application, a pre-application meeting(s) should be set up with the Director, Office of Marine Financing to discuss the application and its requirements.