IFQ Financing under the Fisheries Finance Program August 17, 2010 Tab B, No. 12(a)

Outline New Provisions on IFQ Financing Council’s Request for Participation in the Loan Program Loan Application Process Next Steps

IFQ Financing  New provisions of the Fisheries Finance Program (FFP) would allow some Gulf fishermen to apply for loans to purchase IFQ shares  FFP borrows funds from the US Treasury to fund the loans  Loans are financed on a 20/80 basis (applicant must provide a 20% down payment)  Council must formally request participation in the program

Council’s Request  Request must include definitions of: small vessel entry-level fishermen, and fishermen who fish from a small vessel  Request may include additional eligibility criteria  Council’s request(s) can be submitted through NMFS Regional Administrator

Loan Application Applicant must be an entry level fisherman or a fisherman who fishes from a small vessel; and meet additional eligibility criteria set by the Council (if any) Applicants are subject to background and credit checks, including fisheries violations Application fee equal to 0.5% of the requested loan amount Applications are submitted to NMFS-SERO

Next Steps Council determines eligibility criteria and sends its request(s) to NMFS NMFS will publish a rule to implement the lending program. Rule includes information on the FFP, instructions for applying, and specific guidance for the fishery Final rule for the new provisions of the FFP is expected to publish in mid-September

Vessel Length Distribution – Red Snapper IFQ Distribution as of July 6, Source: Strelcheck – NMFS-SERO

Vessel Length Distribution – Grouper/Tilefish IFQ Distribution as of July 6, Source: Strelcheck – NMFS-SERO

Landings Distribution – Red Snapper IFQ (2009) Landings Class (lbs): C1 : 1-100; C2 : ; C3 : ; C4 : ; C5 : ; C6 : ; C7 : 751-1,000; C8 : 1,001-2,000; C9 : 2,001-3,000; C10 : 3,001-4,000; C11 : 4,001-5,000; C12 : 5,001-7,500; C13 : 7,501-10,000; C14 : 10,001-20,000; C15 : 20,001-30,000; C16: 30,001-40,000; C17: >40,000 Source: Strelcheck – NMFS-SERO

Landings Distribution – Grouper/Tilefish IFQ (2009) Landings Class (lbs): C1 : 1-100; C2 : ; C3 : ; C4 : ; C5 : ; C6 : ; C7 : 751-1,000; C8 : 1,001-2,000; C9 : 2,001-3,000; C10 : 3,001-4,000; C11 : 4,001-5,000; C12 : 5,001-7,500; C13 : 7,501-10,000; C14 : 10,001-20,000; C15 : 20,001-30,000; C16: 30,001-40,000; C17: >40,000 Source: Strelcheck – NMFS-SERO

IFQ Vessel Length Distribution Distribution as of July 6, Source: Strelcheck – NMFS-SERO VesselRed Snapper IFQGrouper Tilefish IFQAll IFQ Programs Length Cumm (ft)Number% % % <16164% 182% 182% %7%152%5%162%5% %13%497%11%497%11% %21%9313%24%9513%24% %42%15321%45%15321%45% %60%13719%63%13719%64% %78%12016%80%12217%80% %90%7610%90%7711%91% %94%294%94%294%95% %96%142%96%142%97% >60164%100%294%100%294%100% Total387100%n/a733100%n/a739100%n/a

Landings Distribution – Red Snapper IFQ Landings avgCumm Freq (lbs)#%#%#%#%#% %196%165%176% 176% %289%2810%289% 4515% %258%217%227% 6722% %176%217%186% 8528% %165%124%145% 9933% %207%3010%248% 12341% 751-1,000155%134%186%155% 13846% 1,001-2, %3211%248%3211% 17057% 2,001-3,000145%196%155%165% 18662% 3,001-4,000186%145%103%145% 20067% 4,001-5,000103%9 124%103% 21170% 5,001-7,50052%134%227%134% 22474% 7,501-10,000165%176%62%134% 23779% 10,001-20,000258%227%217%238% 26086% 20,001-30,000134%124%176%145% 27491% 30,001-40,000186%124%114%145% 28795% >40,000196%124%103%145% % Total309100%300100%294100%301100%n/a Source: Strelcheck – NMFS-SERO

Landings Distribution – Grouper Tilefish IFQ Source: Strelcheck – NMFS-SERO Landings avgCumm Freq (lbs)#%#%#%#%#% %6811%8714%4311% 4311% %356%305%216% 6417% %183%264%134% 7721% %142%91%92% 8623% %203%152%113% 9726% %264%295%195% 11631% 751-1,000294%244%173%144% 13035% 1,001-2, %6410%6210%3810% 16845% 2,001-3,000366%417%417%246% 19251% 3,001-4,000355%224%356%185% 21056% 4,001-5,000142%152%112% % 5,001-7,500558%427%447%288% 24665% 7,501-10,000305%274%234%164% 26270% 10,001-20, %7712%7713%4612% 30882% 20,001-30,000508%396%437%267% 33589% 30,001-40,000132%264%274%134% 34892% >40,000487%6210%335%298% % Total651100%620100%609100%376100%n/a

Landings Distribution – All IFQ Programs Source: Strelcheck – NMFS-SERO Landings avgCumm Freq (lbs)#%#%#%#%#% %447%599%297% 297% %264%254%164% 4512% %152%264%123% 5715% %173%71%82% 6517% %142%102%8 7319% %305%254%174% 9023% 751-1,000315%203%264%154% 10527% 1,001-2, %6610%6310%4010% 14637% 2,001-3,000375%376%295%215% 16642% 3,001-4,000284%223%427%185% 18547% 4,001-5,000142%244%183%113% 19650% 5,001-7,500558%477%467%308% 22557% 7,501-10,000386%315%274%195% 24562% 10,001-20, %8113%8413%5013% 29575% 20,001-30,000609%558%579%349% 33084% 30,001-40,000274%386%447%226% 35190% >40, %8113%467%4110% % Total678100%648100%634100%392100%n/a

Questions ?