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Public Marina Loan Program Frequently Asked Questions

What is the Public Marina Loan Program?
The Department of Boating and Waterways (Cal Boating) lends construction funds to public entities for planning, construction, rehabilitation or expansion of small craft harbors throughout California. Breakwater construction, dredging, berthing, utilities, landscaping and irrigation, restrooms, fuel docks, boat sewage pumpout stations, and public access walkways at small craft harbors are a few of the improvements that can be funded by Cal Boating.

Who can apply for the funds?
Cal Boating’s public marina loan fund is available to any city, county, or district within the State of California that has the ability to acquire, construct, and/or operate a small craft harbor.

How much can a public entity borrow?
The simple answer is any feasible amount.  There is no funding limit as long as the borrower has the ability to repay the loan and Cal Boating has funds available.

How long does the process take?
The funding process takes a minimum of 18 months from application to funding.  Applications are received until April 1 of the year preceding potential funding (for example: April 1, 2006 for funding in the 2007/08 fiscal year).  Each potential project is reviewed by Cal Boating’s engineers for feasibility and cost.  The project must then be included in the Governor’s budget; and, the Legislature must approve the budget.   Assuming a project makes it through the budget process it still has to be approved by Cal Boating’s commission at a public hearing.  Public hearings are scheduled throughout the fiscal year.

What can be used as collateral?
Real property tangible or not, including but not limited to real estate equal in value to 110 percent of the loan, long-term revenue streams equal to at least 125 percent of annual debt service, and irrevocable letters of credit.

What is the interest rate?
The interest rate is set by Cal Boating’s commission and is currently 4.5 percent.

What are the repayment terms?
Cal Boating requires that interest-only payments be made monthly during construction.  This requirement may be waived if there is adequate collateral.  Once the project is complete the balance will be amortized over 30-years.

What can the loan funds be used for?
Planning, acquisition, construction and improvement costs for recreational boating facilities and small craft harbor development.

How do I appeal the denial of a permit, license, or application?

Contact the Director of the Department at:

E-mail: Margarita Sanchez, Executive Administrative Assistant to the Director
Call: (888) 326-2822
Write: Raynor Tsuneyoshi, Director
2000 Evergreen St., Suite 100
Sacramento, CA 95815

Where can I get the required forms?