First 10 Beryl vessel loans approved, totalling $2.8m

The first ten loans to replace fishing boats damaged or destroyed by Hurricane Beryl have been approved, committing $2.8 million under a recovery programme, officials said Monday.

The 2024 cyclone wrecked 200 fishing boats along the coast and on land — roughly nine out of every ten boats. Some 87 vessels have been put back into use, while several others are in the process of receiving loan and grant funding to get their boats back in the water.

Details of the disbursement were revealed by the Beryl Emergency Response and Recovery Project Vessel Replacement Programme at a press briefing at the Fisheries Division.

Deputy Prime Minister Santia Bradshaw, who is also minister for fisheries, announced: “Today we have ten loans approved and another 17 applications at various stages of finalisation. The amount committed to those first ten at this point is $2.8 million.”

She responded to concerns about loan financing rather than grant funding, stating that some fisherfolk have the option to choose grant financing, subject to certain conditions.

“We are trying to bring back a working fleet, and the way to do that responsibly is through financing that owners can manage, which is why 75 per cent comes as a loan and 25 per cent as a grant facility.”

Bradshaw explained that those who had already rebuilt or partially rebuilt their vessels could still take the route of grant-only financing.

To qualify for grant funding, the amount requested must be enough to complete the construction and must represent no more than 25 per cent of the value of the finished vessel, she said.

“This situation allows the applicant to show that the remaining financing is already in place or, where a vessel is already in the process of being rebuilt, and the applicant is seeking the grant component only to complete, and it’s subject to the programme limit of $150 000 for applicants who have already rebuilt their boats or who have partially rebuilt their vessels.

“They may still be eligible for the 25 per cent grant component, which is calculated on the cost of the vessel alone, provided that they submit the necessary invoices and the receipts, quotations, and other supporting documents, or that they have a valuation of the rebuilt, partially rebuilt vessel undertaken by the project’s marine surveyor to estimate the value.”

The programme would also fund an evaluation on a case-by-case basis to ensure no fisher was disadvantaged or unable to access financing.

The loan, offered at an interest rate of four per cent with a repayment period of 10 to 25 years, covers 75 per cent of the replacement cost.

Acting Chief Executive of Enterprise Growth Fund Limited (EGFL), Ferdinand Straughn, outlined the process for applying for loan and/or grant funding.

He said: “Fisherfolk are required to complete an application form. It collects contact information, details of the vessel that they lost during Beryl, details of the new vessel that they’re seeking to acquire, the amount of financing that they’re seeking to replace the boat and for other expenses, and the expected performance of that new vessel because we want to get an idea of the capacity of the vessel, of the applicant to repay the financing that they’re seeking, if it is a loan that they’re seeking.”

He also explained the components of the loan financing: “The applicant can access funds to replace the boat, finance first trip expenses, the first year’s insurance, and legal and associated costs.”

The EGFL chief executive also revealed some benefits loan recipients can receive if they meet the terms of their loan.

“You will get a ten per cent rebate on the interest that is paid during the life of the loan if you make your payments every month on time for at least the amount that is required. You can pay more, but if you pay less, that’s an issue. If you pay more, that’s fine and that ten per cent rebate, if you qualify for it, can actually reduce the effective interest rate on your loan, reducing it from four per cent to approximately 3.6 per cent, somewhere between 3.6 per cent and 3.65 per cent.”

Following the first disbursement of funds, there is a one-year grace period before repayment begins.

Straughn said: “When that 12-month grace period is finished, then there’s an additional six-month period where you only have to pay the interest.”

He explained that applications are reviewed by an application review committee and then a grant and loans approval committee. Once approved, an agreement is signed between the applicant and EGFL.

Loan applicants must provide security in the form of a bill of sale on the vessel, which remains as security for the loan until it is fully repaid.

Deputy Chief Fisheries Officer Christopher Parker, who described the scale of the damage to vessels, said that most of the vessels affected were uninsured at the time.

“The reality of the situation is that 90 per cent of the affected fleet was uninsured, and in this we saw that when there is no coverage, the private sector cannot bear the risk. It then places the responsibility for recovery with the Government of Barbados, working alongside international partners to ensure our fisherfolk are not left to face devastation alone.”

He said the programme was aimed at alleviating not only the economic tragedy but also a social and human tragedy.

Up to $18 million has been allocated for replacement loans and conditional grants, he added.

“This represents a minimum commitment, but not the final word. The goal is not merely to replace what was lost, but to build back better and ensure that when the next storm comes, our fleet and our fisherfolk are more resilient than before.” (LG)