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Commercial fishing group seeks CDA loan guarantee
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Posted on Oct 12 2005
A Seattle-based commercial fishing company, Lady Kimberly, is seeking a $600,000 loan guarantee from the Commonwealth Development Authority, the government said.
The total initial investment, according to Commerce economic development officer Glen Manglona, costs over $2 million.
The business involves long-line fishing and fish processing and marketing.
The proposal also calls for a 30-percent equity ownership from the local fishing association.
“This proposal would allow local fishermen to be part of the business through equity ownership. The company is not asking for a loan, but a loan guarantee,” said Manglona.
A loan guarantee, he said, means that the company will not source the money directly through CDA, but get it from a Seattle bank or any bank.
“It means new money they’d bring in to the CNMI,” he said.
He said Lady Kimberly representatives met last week with Commerce and CDA officials to present the project.
Manglona said the company, which would process their products on Saipan, would sell their products to the U.S. mainland and Japan.
Long-line fishing is a commercial fishing technique that uses hundreds or even thousands of baited hooks hanging from a single line. It usually catches swordfish, tuna, and others.
“They’re not competing with the local fishermen,” said Manglona.
The Commerce Department earlier said that this venture is an alternative industry for the CNMI.
“We welcome this type of operations because we haven’t tapped the vast ocean to our economic benefit,” said Manglona.
Meantime, he said that based on its presentation, Lady Kimberly has a Lloyds of London assigned insurance underwriter, which is USI Northwest.
“There’s no risk on the part of CDA but what we need is for CDA to look at this closely. It’s important that CDA respond to this company because it will provide an opportunity for the CNMI to explore its marine resources,” said Manglona.
