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Recreational Marina Private Loan Program Frequently Asked Questions

What is the Recreational Marina Private Loan Program?
The Department of Boating and Waterways (Cal Boating) lends construction funds directly to owners of recreational marinas for the development, expansion, or improvement of marinas and boater access statewide. Cal Boating construction loan funds are available for:

  • Berthing
  • Dredging
  • Restrooms
  • Vessel Pumpout Stations
  • Utility Installation
  • Riprap and Erosion Control
  • Parking/Lighting
  • Landscaping
  • Launching Facilities
  • Dry Storage Facilities
  • Breakwaters
  • Oil and Solid Waste Recycling Facilities

Who can apply for the funds?
Funds are available to owners of profit-oriented businesses and individuals who own recreational marinas.  The marinas must be in California and open to the general public.

How much can I borrow?
The simple answer is any feasible amount.  A single project may be eligible for up to 75 percent of the total funds allocated for the marina loan program in any given year.   However, there is no limit to the total amount that can be borrowed; and, funding can occur in consecutive fiscal years if necessary.

How long does the process take?
It depends on how complete an application is when it is submitted.  When a complete loan application is received the loan process takes approximately two to three months from application to initial funding.

After they are received, applications are reviewed and a feasibility report is prepared for presentation to the Boating and Waterways Commission. The Commission has final approval authority over proposed loans and meets approximately every two months.

Are there any fees?
Cal Boating does not charge any fees. However, a potential borrower may still have expenses during the application process.  For example, an appraisal of the marina property may be required with the application.

Do I need an appraisal of my marina?
You do if you are using the marina as loan collateral. 

What can I use as colla-teral?
Current statute requires Cal Boating to obtain an amount equal to 110 percent of the loan amount as collateral.  This may be the marina in its “as is” condition, or it could be other property.  A current appraisal (less than 12 months old) will be required of any property that will be used as loan collateral.

What is the interest rate?
The interest rate is set by statute at Prime (as published in the Wall Street Journal) plus 1 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 a period of up to 20 years.

How soon can I start spending the loan funds?
Cal Boating cannot begin reimbursement for project costs until all necessary documents (deeds of trust, title insurance, UCC-1 filings, etc.) have been recorded. This process usually takes four to eight weeks after loan contracts are signed. However, all project-related costs incurred after the date of the loan contract are eligible for reimbursement. As a rule, we encourage you to delay the start of your project until all loan documents have been executed and recorded. In the event there is a failure to execute any of the necessary documentation and the loan is held up or terminated (depending upon the severity of the problem), you will be liable for any project costs incurred.

What can I use the loan funds for?
You may use the loan for all construction costs incurred after the date of the contract, including any labor and materials associated with the project (as defined in the loan contract). Additionally, you may be reimbursed for you own labor and/or the rental of your own equipment, at a pre-approved rate, and with prior permission. This does not include overhead labor costs such as health insurance, workman’s compensation, etc. The use of your own labor sources must be accounted for and treated as if it were contract labor. Working capital, items not associated with the project, engineering services and any work completed before the loan contract date are not eligible for Cal Boating funds.

How do I request reimbursement?
Cal Boating requires a written request for reimbursement – a letter listing the expenses, with copies of invoices and receipts. Reimbursement for project expenses cannot be more frequent than once every month (30 days). As stated in the loan contract, Cal Boating will retain 10 percent from each request until all mechanic liens have been released from the project and you have received final approval.

When will I receive my reimbursement check?

Cal Boating processes your request when it is received.  The necessary paperwork is forwarded to the State Controller’s office, and they issue your check. Typically, it takes four weeks to receive reimbursement.

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?