Federal Ship Financing Guarantees

To finance eligible vessels and shipyards to promote the growth and modernization of the U.S. Merchant Marine and U.S. shipyards. The Federal Ship Financing Program (commonly referred to as "Title XI" based on the part of the Merchant Marine Act of 1

To finance eligible vessels and shipyards to promote the growth and modernization of the U.S. Merchant Marine and U.S. shipyards. 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 long-term loans by the Maritime Administration (MARAD). Through these loans, the Title XI Program encourages U.S. shipowners to obtain new vessels and recondition existing vessels with U.S. shipyards cost effectively.

An individual, corporation, partnership, limited partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or other acceptable legal business entity, government, or any agency or political subdivision thereof seeking to finance the construction, reconstruction or reconditioning of an eligible vessel or finance modernization of a domestic shipyard.

U.S. shipowners, or eligible U.S. shipyards.

Eligible projects for financing include: 1) Vessels - commercial vessels such as ferries, bulk, container, cargo, tankers, tugs, towboats, barges, dredges, oceanographic research, floating power barges, offshore support vessels (oil & gas and windfarm), and floating drydocks. The focus of the Title XI Program is on new construction, but projects for reconstruction and/or reconditioning of existing vessels to improve efficiency and extend useful life -- such as repowering to use alternative fuels for propulsion -- may also be considered. 2) Shipyards - Limited to privately-owned, general shipyard facilities in the U.S. designed for construction, reconstruction, repair, rehabilitation or refurbishment of vessels.

The maximum guarantee period is the lesser of 25 years from the date of vessel delivery or shipyard construction completion or the remaining economic life of the vessel or shipyard project, as determined by MARAD. The approved financing period will be based on the financial, economic, market, and other critical aspects of the project. Loan disbursements are available after closing and made upon borrower request based on eligible project costs and conditions being met.

Preapplication coordination is recommended. Environmental impact information may be required for this program. This program is excluded from coverage under E.O. 12372. For more information, please visit Title XI website: http://www.marad.dot.gov/grants/title-xi/federal-ship-financing-program-title-xi

MARAD reviews submitted applications on a "first come, first served" basis. Applications are generally processed in order of receipt but are not required to be approved in that same order. Projects are reviewed to ensure they meet the eligibility requirements (including economic soundness, financial requirements, technical acceptance, legal and regulatory compliance, and insurance requirements). The priority for consideration of applications mandated by the program's authorizing statute is: 1) Vessels suitable as a naval auxiliary vessel and meet a shortfall in sealift capacity or capability; 2) Vessels of National Interest; and 3) Shipyard modernizations and any vessels that do not meet the previous requirements.

MARAD evaluates applications and advises applicants of approval or disapproval. Final approvals are granted by the Maritime Administrator.

The Maritime Administration is required to approve or deny an application within 270 days of receiving a completed application. The deadline may be extended up to two years by applicant. Application processing times vary based on complexity of the project and/or transaction structure and the responsiveness of the applicant during the MARAD review.

Not Applicable. Disapproved applicants may reapply at any time.

Not Applicable. Disapproved applicants may reapply at any time.