FINANCIAL SOURCES FOR AQUACULTUREProvided by the Animal Welfare
Information Center
|
April 1991
Prepared by: Eileen M. McVey
NAL Call No.: aSH135.M
Aquaculture Information Center
National Agricultural Library
10301 Baltimore Blvd.
Beltsville, MD 1991
Preface
Aquaculture production is increasingly being identified as a
means of primary and supplemental income. Aquaculture can be
a small business or a large industrial enterprise. This
publication is directed at the farmer who is looking for a
source of income through use of marginal agricultural lands,
existing ponds, or vacant buildings; the potential
aquaculturist who may be looking for a new enterprise; or the
current aquaculturist who is considering expanding his/her
operation. The majority of financing for any new,
independent, business venture will be from the owner's
personal assets and private loans prior to contacting outside
sources. Information on sources of funding for community
groups, educational institutions, and other non-profit
entities interested in aquaculture projects is also provided
in this publication. Sources covered are Federal and State
loan programs, Federal research granting agencies, private
granting agencies, and private loan institutions. The
aquaculturist may be required to provide a business plan
and/or written proposal to these groups to obtain funding.
Also discussed are those sources that provide consultation
services. At the end of the text are a Directory of
Government Sources, a Directory of Selected Private Sources of
Information and Financing, a Directory of Selected
Foundations, and a Selected Bibliography. The directories
provide readers with initial addresses for contact as they
begin their search for assistance. The bibliography provides
avenues for further research.
Acknowledgments
The Aquaculture Information Center wishes to thank Meryl
Broussard (Cooperative State Research Service), Joyce Thompson
(Economic Development Administration), Christine Quinn (Farm
Credit Administration), Penny R. Lott (Farmers Home
Administration), James McVey (National Sea Grant College
Program), and Tom Peniston from the Small Business
Administration for review of text related to their agencies.
The Aquaculture Information Center also wishes to thank Brad
Powers (Maryland Department of Agriculture) and Louise
Reynells (Rural Information Center, National Agricultural
Library) for their time in reviewing and commenting on the
overall publication.
THE AQUACULTURE BUSINESS PLAN
Starting a new aquaculture venture or expanding an ongoing
aquaculture business is exciting and stimulating. Maintain
and preserve that excitement and high energy! You will need
it. Your search for financial assistance may take many
months. Before approaching any private, State, or Federal
agency for financial assistance, the potential or present
aquaculturist must develop a concise business plan. This will
give him/her credibility with the financial institution and,
more importantly, will give direction and organization to the
aquaculturist's enterprise which should lead to greater
chances of success (Rhodes). The writing of a business plan
will clarify for the aquaculturist his/her knowledge of the
business and dedication to the enterprise. The business plan
may bring to light unanticipated problems as well as
unidentified resources. The U.S. Small Business
Administration produces a booklet titled "Checklist for Going
Into Business"(MP 12) which is a useful guide for preparing a
small business plan. (See "Directory of Business Development
Publications" in the Directory of Government Sources at the
back of this publication.) How to Create a Winning Business
Plan by James W. Taylor (See Selected Bibliography) is also a
useful manual. You can find many other books on small
business planning in your local library or book store.
Aquaculture enterprises are usually site and climate
sensitive. The potential culturist must analyze carefully the
selected site. Although the culturist can artificially alter
climate parameters with indoor culture, this can be expensive.
The potential aquaculturist must have a fair understanding of
extensive, semi-intensive, and intensive culture systems in
use in the United States and the advantages, disadvantages,
and appropriateness of each for the enterprise. Whether
indoor or outdoor culture is being considered, available water
must be analyzed, species suitability must be considered, and
State and regional legislative and permit requirements must be
understood. These issues should be discussed with the State
Aquaculture Extension Specialist and State Department of
Agriculture or State Department of Natural Resources offices
before beginning the business plan.
Next, the aquaculturist must research the potential market.
Who is most likely to buy the cultured product? What is the
size of this market? What are the buying public's
preferences? What does your product have that gives it an
edge over other similar available products (size, color,
flavor, etc.)? What are disadvantages your product has with
your competitor's product (transportation costs,
recognizability, etc.)? Can financing assist in overcoming
these disadvantages? Market surveys are one means of
identifying a target or specialized market. Your State
Department of Agriculture or State Department of Natural
Resources may be able to put you in contact with an economic
office that provides demographic information for your selected
market area. Some States compile extensive profiles of
demographic data through the census. In your business plan,
define in specific terms your distribution strategy and your
plan for overcoming unexpected product loss (an important
consideration when transporting live and perishable products
such as seafood).
Finally, outline in specific terms your business' financial
statement. What is needed in terms of labor, equipment, land,
utilities, stock, suppliers, and transportation. Your budget
sheet should include 1) gross receipts from sales; 2) variable
costs [stock, feed, chemicals, labor, equipment maintenance
and repair, and interest payments on operating capital]; 3)
income above variable costs; 4) fixed costs [general overhead,
mortgage interest, and depreciation on equipment and
buildings]; and 5) net return (Chaston, 1984). Aquaculture is
very capital-intensive, and one way to overcome limited
resources is to consider leasing assets for the business
rather than purchasing them. Contact your State Aquaculture
Extension Specialist for more information on creating
financial statements.
Once you have written your business plan to use in approaching
the financial institution, put a copy safely away for a later
review of your progress in implementing the plan.
Develop a clear calendar of events which accommodates the
selected climate for the growth to market of the selected
species.
Careful research on all of these areas should provide
information for a comprehensive business plan and financial
statement. Include information on the weaknesses and risks of
the business to assure potential investors that you have a
complete understanding of the enterprise.
Before approaching a loan or grant officer, know how much
financing is needed, how large a payment can be carried
monthly, and what can be provided for collateral. If you are
approaching a commercial loan officer, the lender will be
interested in your management capabilities and your credit
history. Put this in writing along with your written business
plan. If possible, determine what type of loan you will need:
a term loan for durable items, a mortgage loan for real
estate, a line of credit to borrow against as you need, or an
operating loan for working capital (Johnston). In a new
enterprise a year may be required to obtain the necessary
Federal, State and local permits. Another 6 months can be
spent in construction. Therefore, lenders are often concerned
about the relatively long period necessary for the business to
recapture its investment and worried about risks in a new
field. Be aware that financing is usually more attainable if
you have completed two crop cycles.
FINANCIAL PROGRAMS
There are direct and indirect financial assistance programs at
the Federal and State levels for aquaculturists. All of these
programs encourage technological progress and participation of
minority and disadvantaged firms, but some agencies focus on
Federal or State research and development needs while other
programs focus on private sector commercialization over
broader areas. These programs are limited in funding and
availability.
1. Farmers Home Administration
The Farmers Home Administration (FmHA) under the U.S.
Department of Agriculture provides loans to aquaculture
operators as well as farmers, ranchers, rural residents, and
communities. Some loans are for individuals and their
families. Other loans are made to partnerships, cooperatives,
corporations, or public bodies. Loans may be used for
husbandry of aquatic organisms including feeding, tending,
harvesting, and any other necessary activities to promote and
establish an aquaculture business. Aquaculturists are
encouraged to make use of commercial sources of credit when
able to do so. FmHA will then consider supplementing those
financial resources with loans.
Farmers Home Administration loans are of two types.
Guaranteed Loans are made and serviced by a private lender
with FmHA guaranteeing to limit any loss to a specified
percentage. Interest rates are determined by the borrower and
lender unless established by law. Insured Loans are sold to
investors through the Federal Financing Bank and are insured
by the Federal Government with interest rates usually
determined by current cost of Federal borrowing.
Eligibility
Individuals, corporations, cooperatives, and partnerships that
will conduct family-size farming or ranching operations may
apply. To be eligible, an individual must generally: 1) be a
citizen of the United States; 2) be unable to obtain
sufficient credit elsewhere at reasonable rates and terms; 3)
have the ability to repay the loan; 4) possess the legal
capacity to incur the obligations of the loan; 5) be an owner
or tenant operating a family farm after the loan has closed;
6) need to rely on farm income and any other income to provide
a level of living comparable to that considered reasonably
adequate for the area; and 7) have a satisfactory history of
meeting credit obligations, have farm experience or training,
and possess the managerial ability to carry out the operation.
Amounts of loans range from $500 to $500,000 with an average loan amount of $48,000. Guarantees are made for up to 90 per cent of the loan amount from the private lender in the area.
FmHa Loan Programs:
Business And Industrial Loans (B&I) are used to promote
business development in cities and towns under 50,000 in
population with preference being given to more rural
communities. B&I Loans can be made for conservation,
development, and utilization of water for aquaculture
purposes. Conservation includes enhancement of public owned
and regulated fish stocks. For B&I Loans, aquaculture means
the culture or husbandry of aquatic animals or plants by
private industry for commercial purposes including growing
fish to create or augment public owned and regulated fish
stocks.
Emergency Loans (EM) are insured loans to finance repair,
restore, or replace damaged or destroyed farm property
resulting from natural disasters and to pay necessary
operating expenses to return farming operations to financially
sound conditions. Interest rate is fixed and can be obtained
by contacting the agency.
Farm Ownership Loans (FO) are granted for the purchase and
development of real estate and water resources to help
applicants become owner-operators of family farms.
Operating Loans (OL) are made for refinancing equipment, fish
stocks, family living and operating expenses, and small
land/water improvements.
Resource Conservation and Development Loans (RC&D) can be made
for the conservation, development and utilization of water for
aquaculture purposes. RC&D Loans are made to public agencies
and nonprofit corporations in areas that have been designated
by the Secretary of Agriculture for resource conservation and
development projects.
Soil and Water Loans (SW) are made for land and water
development,
forestation, drainage, irrigation, and related adjustments.
Applications for aquaculture loans are filed in the FmHA
county office servicing the area in which the operation is
carried out. Persons who are unable to locate the local FmHA
office may request the information from the Farmers Home
Administration (See Directory of Government Sources).
2. Small Business Administration
The United States Small Business Administration (SBA) is an
agency created by Congress in 1953 to provide assistance for
small businesses. The SBA provides loans through its Business
Loan Program. The applicant is required to seek assistance
from a bank or lending institution prior to applying to the
Small Business Administration. Loans are granted only to
businesses operated for profit. SBA generally requires that
owners provide one-third to one-half of the total assets
needed to launch a new business.
Length of maturity of SBA working capital loans varies from 5 to 7 years. Financing fixed assets and major renovation of business requires a long-term loan and maximum maturity is 25 years. Currently, interest rates for loans are negotiated within SBA maximums, and loans with maturities 7 years or longer cannot exceed 2.75 per cent over the prime rate while shorter term loans cannot exceed 2.25 per cent over prime.
SBA offers two basic types of loans, Guaranteed Loans and
Direct Loans. Guaranteed Loans provide initial financing
primarily from private lenders with the loan being guaranteed
by the SBA. Guaranteed Loans, at the time of this writing,
carry a maximum guarantee of 90 per cent for loans exceeding
$155,000 and a maximum guarantee of 85 per cent for larger
loans up to $750,000. The small business submits the loan
application to the lender who makes the initial review and, if
approved, forwards the application with analysis to the local
SBA office. If approved by the SBA, the lender closes the
loan and disburses the funds.
Eligibility For Guaranteed Loans
By law, applicants must seek financing from a bank or other
lending institution before using SBA assistance. Loans are
made available to eligible small businesses with the required
minimum size based on sales volume or employee size depending
on the type of business. Contact your local SBA office for
specifics on size standards.
Direct Loans are the second type of loan. These loans have a
maximum of $150,000 and are available only to applicants
unable to secure an SBA Guaranteed Loan.
Eligibility For Direct Loans
These loans are limited in funding and available to certain
types of borrowers such as businesses located in high-
unemployment areas or businesses owned by low-income
individuals, handicapped individuals, Vietnam-era veterans, or
disabled veterans.
SBA Special Loan Programs:
SBA Special Loans include the Export Revolving Line of Credit Guarantees, Handicapped Assistance Loans, Local Development Company Loans, Pollution Control Financing, Seasonal Line of Credit Guarantees, and Small General Contractor Loans.
SBA 504 Program provides long-term financing to small business
concerns by combining the resources of the SBA, a Certified
Development Company, and/or private financiers. The Certified
Development Company usually assists with the loan application
and may assist with finding private sector lending. Interest
rates are based on current market rates for U.S. Treasury
issues. The SBA will loan $750,000 (up to $1 million) or 40
per cent of the loan. Loans are for funding machinery and
equipment acquisition for 10 years and real estate purchase
for 20 years. The 504 Program is not for debt payment or
working capital.
Small Business Investment Companies (SBIC's) are licensed,
regulated, and provided with financial assistance by SBA to
make available equity capital and unsecured loans for
"venture" or "risk" investments. Contact the SBA office in
your area for information. Interest rates may be high and
similar to venture capital investments in that the SBIC takes
up to 49 per cent ownership. SBIC programs may be listed in
your State under titles such as "Bureau of Business
Assistance." Contact the National Association of Small
Business Investment Companies (NASBIC) for more information or
for a publication titled Directory of Operating Small Business
Investment Companies. (See Directory of Selected Private
Sources of Information and Financing for address.)
Procurement Assistance Programs under the SBA assist small
businesses in obtaining government contracts.
3. Cooperative State Research Service
The Cooperative State Research Service (CSRS) under the U.S.
Department of Agriculture (USDA) works with the State
Agricultural Experiment Stations, the forestry schools, the
1890 land-grant colleges, Tuskegee Institute, and colleges of
veterinary medicine. CSRS allocates formula funds to States
for maintaining high-quality research programs in aquaculture.
CSRS awards grants in aquaculture on a competitive basis
through the Aquaculture Special Grant Program and the National
Research Initiative (NRI) (formerly the Competitive Grants
Office). CSRS also adminsters Special Grants in aquaculture
on research problems that Congress believes are important to
the Nation. In cooperation with Extension Service, CSRS
provides funding for research and extension activities that
are administered through the five USDA Regional Aquaculture
Centers.
Eligibility
For information on eligibility for the Aquaculture Special
Grants Program and the NRI, the scientist should request the
solicitation announcements for these programs from: Proposal
Services Branch, Awards Management Division, CSRS, U.S.
Department of Agriculture, Rm. 303, Aerospace Building,
Washington, DC 20250-2200.
For information on the Regional Aquaculture Center programs,
researchers should contact the specific Regional Aquaculture
Center for their current list of research priorities and
operational guidelines.
4. Economic Development Administration
The Economic Development Administration (EDA) under the
Department of Commerce provides grants and loans to alleviate
conditions of substantial and persistent unemployment and
underemployment in economically distressed areas and regions
of the Nation. EDA is particularly interested in projects
located in federally authorized and designated enterprise
zones.
To establish merits of project proposals, interested parties
should first contact the economic development representative
for the area (See Directory of Government Sources).
EDA also administers a program of Guaranteed Loans. Authority
is available to guarantee up to 80 percent of the principal
and interest made by eligible commercial lending institutions
to private borrowers for the purchase of fixed assets and/or
for working capital purposes for projects located in areas
eligible for EDA assistance. Applicants should contact either
the Austin or Philadelphia Regional Office Business Loans
Division to discuss their proposals. Applications will be
accepted only from private lending institutions.
Other programs under EDA are the Technical Assistance Program;
University Center Projects; Planning Assistance for Economic
Development Districts, Indian Tribes, and Redevelopment Areas;
Planning Assistance for States and Urban Areas; Research and
Evaluation Projects; Economic Adjustment Assistance; and Trade
Adjustment Assistance. Please contact the EDA regional office
in your area for further information on these funding
programs. (See Directory of Government Sources).
5. Federal-State Marketing Improvement Programs
This program under the U. S. Department of Agriculture,
Agricultural Marketing Service, is a matching fund program
exclusively available, on a competitive basis, through the
State Departments of Agriculture or other State agencies.
Projects must support marketing services that improve the
marketability of agricultural products, expand export markets,
and improve the efficiency in marketing through pilot
projects. Funding is not directly available to individual
aquaculturists, however, respective State Departments of
Agriculture or State agencies may deem a project viable and
apply directly to FSMIP for possible funding.
6. National Sea Grant College Program
The National Sea Grant College Program under the Department
of Commerce, National Oceanic and Atmospheric Administration
(NOAA), provides grant funding through a core of 29 Sea Grant
colleges and institutions which in turn network with over 200
participating universities and research institutes.
Approximately 10 per cent of Sea Grant funding has been
allocated to aquaculture projects in the past. Funding is
most often allocated to the research branch of the
institution, but a private aquaculturist may submit a proposal
requesting funds to research a specific problem through his or
her local Sea Grant college or university. These grants are
awarded based on competitive proposals subject to vigorous
review. The proposal must follow very specific guidelines.
Grants are not provided for startup enterprises or expansion
of ongoing aquaculture business.
Eligibility
Universities, colleges, technical schools, institutes,
laboratories, public or private corporations, partnerships,
individuals, and State or political subdivisions are eligible
to apply. Grant money cannot be used for purchase of
facilities.
Grants range in size from $5,000 to $150,000 with the average
grant size at $31,000 or $57,000 with matching funds. One-
third of the funds must be matched. Aquaculturists with a
research project should contact their local Sea Grant college
or university.
7. Small Business Innovation Research
Small Business Innovation Research (SBIR) provides grants that
are seed capital directly from Federal agencies based on
research that they are willing to fund. Federal legislation
gives the Small Business Administration the responsibility for
issuing the directives for conducting the general program.
SBIR program goals are to 1) stimulate technological
innovation; 2) use small businesses to meet Federal research
and development needs; 3) increase private sector
commercialization of innovations derived from Federal research
and development; and 4) foster and encourage participation by
minority and disadvantaged persons in technological
innovation.
Twelve agencies have SBIR programs. These are the U.S.
Departments of Agriculture, Commerce, Defense, Education,
Energy, Health and Human Services, Interior, Transportation,
and the Environmental Protection Agency, the National
Aeronautics and Space Administration, the National Science
Foundation, and the Nuclear Regulatory Commission.
Administration of the program is shared between the Small
Business Administration and the participating research agency.
Aquaculturists with a research project should contact the
Department of Agriculture, the National Science Foundation, or
the Department of Commerce branches of the SBIR program.
Agencies are required to evaluate and fund SBIR proposals
using a three-phase process. Phase I provides funds for
testing the proposal's scientific and technical merit and
practicality usually covering a 6-month time period. Phase II
provides funding for further development of those projects
that were highly rated and covers activities for 1 to 2 years
more. Phase III provides funding for commercial application
of the research.
Eligibility
The business must be independently owned and operated and
cannot be a dominant firm in the field in which they are
proposing to carry out the SBIR project. In addition, the
business must be organized and operated for profit, must
employ 500 or fewer employees, and must be the primary source
of employment for the project's principal investigator at the
time of the award and during the research. The business must
be at least 51 per cent owned by U.S. citizens or lawfully
admitted permanent resident aliens.
SBIR legislation requires that each agency allocate at least
1.25 per cent of its external research and development
obligations for SBIR projects when the total external
obligations exceed $100 million.
Due to the differences in research budgets within the various
agencies, the SBIR obligations also vary in size.
Historically the Department of Defense has funded 55 per cent
of the total programs. Most Phase I grants are for $50,000 or
less, Phase II grants are for no more than $500,000. Phase
III projects have not as yet been funded.
In addition to the above Federal programs that are usually
administered at the State level, States may have their own
local development programs with tax incentives for aquaculture
investment.
State economic development programs vary in their structure
and responsibility. State staff may have expertise in areas
of financing, advertising, tax applications, business
management, and exporting. While some States are now
including an emphasis on aquaculture in their economic
development program, the industry is still not well known in
other States.
Financial incentives at the State level may include direct
loans, loan guarantees, development bonds, grants, and State
supported venture capital programs. Maximum loan amounts at
the State level are generally less than $1 million. Grants
are very rare and usually require ability to provide
supplemental financial support. The research should have an
emphasis on technology transfer applications and defined
benefit to the community. States may also provide assistance
in the form of tax credits, tax abatements, tax exemptions,
and tax deductions. State programs using lottery funds,
environmental issues, and minority support programs may all
have an application for aquaculture. Oregon Resource and
Technology Development Corporation is one entity that decides
which companies receive lottory funds for seed capital
(Wilkerson). Funding may depend on how carefully the goals of
the funding request or proposal are defined.
Aquaculturists should contact their State office for
information on the programs available to them through their
State. The name of the contacting office varies by State but
may be listed as: State Economic Development Office, State
Department of Commerce, Bureau of Business Assistance, or
Office of Urban Programs. Contact your State Department of
Agriculture or State Department of Natural Resources for the
appropriate office in your State. County-level economic
development programs may also be available.
1. Commercial Banks and Loan Offices
The largest number of business loans are provided by
commercial banks (Rhodes). Commercial loan institutions are
interested in businesses that can provide 2-5 years budget
history and a comprehensively written business plan. The
lending institution will require substantial collateral.
Short-term bank loans can be used for increased inventory or
purchase of brood stock with a view to repayment of the loan
within a year or less (may expand 2 to 3 years)(Ford) . Term
money allows the borrower to pay back the loan over a longer
period of time (Rhodes). Most term loans providing 80 per
cent to 90 per cent of total costs are written for 5 years or
the useful life of the asset and may have a refinancing clause
(Ford). Most lenders require the aquaculturist to co-sign the
loan or provide a third party to guarantee repayment. Capital
improvements may have little resale value; therefore, the bank
may provide credit for only a small portion of the cost of
improvements. Determine if a particular loan officer has
experience with aquaculture businesses. If a bank or a
particular person in a bank has a successful track record with
aquaculturists in your area, the task of securing the loan
will be easier.
Individuals should provide in the loan application: personal
information (address, birth date, marital status); financial
statement of net worth; evidence of having a steady job;
personal income information; personal resume and references
(Johnston).
2. Cooperatives
Formation of cooperatives (joining of financial resources with
other similar businesses) is one way to take control of the
direction of regional aquaculture industry growth. Funneling
marketing efforts through cooperative groups of small farms
concentrates selling power.
CoBank--National Bank for Cooperatives is one of the largest
cooperative financial institutions. Ten district Banks for
Cooperatives located across the Nation were merged with the
Central Bank for Cooperatives in January of 1989. CoBank
offers financial services to agricultural cooperatives and
finances agricultural exports and provides international
banking for the benefit of U.S. farmer-owned cooperatives.
The national office or National Bank for Cooperatives is
located in Denver, Colorado (See Directory of Selected Private
Sources of Information and Financing).
Eligibility:
CoBank provides financing to agricultural cooperatives that
transact at least 50 per cent of their business with or for
their members; 80 per cent of the voting stock is held by the
member agriculturists with one vote per member; and operations
are cooperative regarding member control and distribution of
earnings. Under certain conditions, CoBank may lend to joint
ventures, subsidiaries, and partnerships of eligible
customers.
Lending programs are for short-, intermediate-, and long-term
financing at variable and fixed rates of interest. Also
under the Farm Credit System is a nationwide network of
farmer-owned lending institutions. In 1988 Farm Credit Banks
(FCBs) resulted from the merger of the Federal Land Bank and
Federal Intermediate Credit Bank in each of 11 districts.
Funds, supervision, and support services are provided to 95
Federal Land Bank Associations (FLBAs), 82 Production Credit
Associations (PCAs), 66 Agricultural Credit Associations
(ACAs) and 19 Federal Land Credit Associations (FLCAs) for a
total of 262 locally owned farm credit associations. The
aquaculturist should contact his or her County Extension
Specialist for information on the above financial
institutions.
Farm Credit Banks make long-term loans to farmers and ranchers
for land and other purchases through the FLBAs. Production
Credit Associations make short- and intermediate-term loans to
farmers and ranchers. Agricultural Credit Associations offer
a full range of short-, intermediate-, and long-term loans.
Loans can be made to aquaculturalists who operate in open
waters or under controlled conditions for the purchase or
repair of fishing vessels, for the construction or repair of
shore facilities, or for marketing and processing facilities.
Requests for general information should be directed to the
contact at the district level or through the Farm Credit
Council (See Directory of Selected Private Sources of
Information and Financing).
3. Venture Capital
Venture capital is financing available through a group of private investors. Venture capital is usually available for high technology/larger scale operations. In most cases aquaculture is considered too highrisk and venture firms are unwilling to invest in companies in the startup stages (Case). Venture capitalists frequently require 49 per cent or greater equity interest in the operation and require the issue to be preferred equity or preferred stock with priority in receiving distributions of assets if the company dissolves (Daniels). Aquaculturists who are interested in a research or technology application for their enterprise, should contact the Venture Capital Network (See Directory of Selected Private Sources of Information and Financing) for information on their national computer matching database. Capital is also available to aquaculture biotechnology operations (in North Carolina only) through the North Carolina Technological Development Authority (See Directory listed above) which provides startup funding. Other States may have technology-based development groups.
4. Private Foundations
Many large and small foundations have funded or are funding
aquaculture projects for scientific research, area economic
development, minority business support, or environmental
conservation and enhancement. Procedures for grant
application vary. While they usually provide funding to
political or academic nonprofit groups and do not fund
individuals or private businesses, they may be a source of
funding for aquaculture to those nonprofit groups. Your
public library has publications listing philanthropic
foundations.
D. CONSULTATION SERVICES
Both the State and Federal Governments have available a number
of offices with knowledgeable staff who will provide
assistance and advice for your business venture without charge
or for a nominal fee. The USDA Extension Service, the Sea
Grant Extension Service, and the Small Business Development
Centers (SBIC) are all available regionally to assist the
aquaculturist. The Service Corps of Retired Executives
(SCORE) is a volunteer organization sponsored by the Small
Business Administration which provides counseling for the
prospective or current business owner. While the number of
"retired aquaculture executives" in SCORE may be limited, you
can get general advice on merchandising, financial management,
marketing and trade. In addition many of the States have State
Aquaculture Coordinators, located at their State Department of
Agriculture or State Department of Natural Resources, who can
provide you with information on the scope of aquaculture
development and support within your State. Contact your
public library or look in your phone directory for names and
addresses of these offices.
In addition, the Small Business Administration produces a
number of useful business development pamphlets and business
development booklets sold through the Government Printing
Office for a nominal fee. Request order form 115A and 115B
through U.S. Small Business Administration, P. O. Box 30,
Denver, CO 80201-0030 or call 800-225-5722 for these order
forms.
E. DIRECTORY OF GOVERNMENT SOURCES
Agricultural Marketing Service, Federal-State Marketing
Improvement Program, U.S. Department of Agriculture, Room
3518, South Building Washington, DC. 20250
Cooperative State Research Service, U. S. Department of
Agriculture, 14th and Independence Avenue, SW Aerospace
Building, Suite 330, Washington, DC. 20250-2200
Competitive Grants Program, c/o Proposal Services Branch,
Cooperative State Research Service, Room 303, Aerospace
Center, US Department of Agriculture, Washington, DC.
20250-2200
Directory of Business Development Publications, P.O. Box
15434, Fort Worth, TX. 76119
Farmers Home Administration Information Office, U. S.
Department of Agriculture, 14th and Independence Avenue, SW,
Washington, DC. 20250
National Sea Grant College Program, U. S. Department of Commerce, 1335 East-West Highway, Silver Spring, MD. 20910
Small Business Innovative Research Program (SBIR), Small
Business Administration, 1441 L St., NW, Washington, DC.
20416
Small Business Administration, 1441 L St., NW, Washington, DC.
20416 Regional Economic Development Offices of EDA
Atlanta Regional Office, Suite 1820, 401 West Peachtree Street, NW, Atlanta, GA. 30308-3510 Ph: (404) 730-3002
Austin Regional Office, Suite 201, Grant Building, 611 East
Sixth Street, Austin, TX. 78701 Ph: (512) 482-5461
Chicago Regional Office, Suite A-1630, 175 West Jackson
Boulevard, Chicago, IL 60604 Ph: (312) 353-7706
Denver Regional Office, 1244 Speer Boulevard, Room 670,
Denver, CO. 80204 Ph: (303) 844-4717
Philadelphia Regional Office, Liberty Square Building, 105
South 7th Street, First Floor, Philadelphia, PA. 19106 Ph:
(215) 597-4603
Seattle Regional Office, Suite 1856, Jackson Federal Building, 915 Second Avenue, Seattle, WA. 98174 Ph: (206) 442-0596
F. DIRECTORY OF SELECTED PRIVATE SOURCES OF INFORMATION AND
FINANCING
Aquaculture Productions, Inc., 1801 East 23rd, Little Rock,
AR. 72206 Ph: (501) 376-7346
Debt Management Services, National Sales Office, 2 Boston Fish
Pier, Boston, MA. 02210 Ph: (617) 423-6982
Farm Credit Council, 50 F Street, NW #900, Washington, DC.
20001 Ph: (202) 626-8710
Gulf State Bank, P.O. Box Drawer GG, Carrabelle, FL. 32322
Ph: (904) 697-3395
National Association of Small Business Investment Companies,
1103 Grand Ave. 6th Fl., Kansas City, MO. 64106
National Bank for Cooperatives, P. O. Box 5110, Denver, CO.
80217 Ph: (303) 740-4000
National Business Association, 15770 N. Dallas Pkwy., Suite
260, Dallas, TX. 75248
North Carolina Technological Development Authority, 430 N. Salisbury St., Raleigh, NC. 27611 Ph: (919) 733-7022
Omega Financial Services, 4339 E. 86th St., Tulsa, OK. 74137
Ph: (918) 493-6232
Service Corps of Retired Executives Association, 1825
Connecticut Ave., NW, Suite 503, Washington, DC. 20009 Ph:
(202) 653-6279
Venture Capital Network, MIT Enterprise Forum, 201 Vassar St.,
Cambridge, MA. 02139 Ph: (617) 253-7163
[In addition the reader may wish to consult the current issue
of the Aquaculture Magazine "Buyer's Guide and Industry
Directory" for a listing of private and commercial assistance
under the sections titled "Aquaculture Investment,"
"Feasibility Studies," "Marketing Service," and "Risk
Management." Aquaculture Magazine, P.O. Box 2329, Asheville,
NC. 28802 Ph: 704-254-7334]
G. DIRECTORY OF SELECTED FOUNDATIONS
[These institutions are a few of many large and small
foundations that have funded or are funding aquaculture
projects for scientific research, area economic development,
minority business support, or environmental enhancement.
Procedures for grant application vary. While they usually
provide funding to political or academic nonprofit groups and
do not fund individuals or private businesses, they are
provided here for information.]
Belle W. Baruch Foundation, 90 Park Avenue, New York, NY.
10016. Gives primarily to education and research in
conservation of natural resources and marine biology through
South Carolina universities.
Culpeper (Charles E.) Foundation, 866 United National Plaza,
Room 408, New York, NY. 10017. No grants to individuals or
for conferences, operating budgets, travel, or loans.
FishAmerica Foundation, 1010 Massachusetts Ave., N.W. Suite
100, Washington, DC. 20001. No grants to individuals for
research, endowments, operating expenses, advertising,
traveling costs, and loans.
Ford Foundation, 320 East 43rd St., New York, NY. 10017. No grants to those programs with substantial government funding, no grants for routine operating costs, construction or maintenance of buildings, or purely personal or local needs.
Kresge Foundation, P.O. Box 3151, 3215 West Big Beaver Rd.,
Troy, NY. 48007-3151. No grants to individuals, no grants
for operating budgets, furnishings, research, or debt
retirement.
Jessie Smith Noyes Foundation, 16 East 34th St., New York, NY. 10016. No grants to individuals or for operating capital.
Rockefeller Foundation, 1133 Avenue of the Americas, New York, NY. 10036. No grants for aid to individuals, for capital endowment funds, general support or scholarships or loans.
H. SELECTED BIBLIOGRAPHY
Anon. "Diverse farming projects get grants," Des Moines
Register, v. 141(210), February 24, 1990, p. 6S.
Blakely, David R. and Christopher T. Hrusa. Inland
Aquaculture Development Handbook. Fishing News Books, Ltd.,
Oxford, England, 1989. 184 pp. NAL CALL NO: SH159.B54
Case, John. "Venture investing: opportunities knock." Inc.
v. 6, March, 1984, pp. 143-7.
Chaston, Ian. Business Management in Fisheries and
Aquaculture. Fishing News Books, Ltd., Oxford, England,
1984. 128 pp. NAL CALL NO: SH328.C4
Chaston, Ian. Marketing in Fisheries and Aquaculture.
Fishing News Books, Ltd., Oxford, England, 1983. 143 pp. NAL
CALL NO: SH211.C46
Daniels, Walter E. "Financing Considerations for Early Stage
Technology-Based, Emerging Growth Companies." B T Catalyst.
North Carolina Biotechnology Center, Box 13547, Research
Triangle Park, NC., September 1988, p. 4.
Davidson, Jeffry P. Avoiding the Pitfalls of Starting Your
Own Business. Walker and Company, NY. 1988. NAL CALL NO:
HD62.5.D38
Dore, Ian. Fresh Seafood The Commercial Buyer's Guide.
Buying, Choosing, Handling and Using Fresh Fish and
Shellfish. Osprey Books, Huntington, NY, 1984. NAL CALL NO:
HD9450.5.D67
Dorsch, Jennifer. "They found their markets first."
Successful Farming, v. 88(6), April 1990, pp 14-16
Dumouchel, J. Robert. Government Assistance Almanac
1989-1990. The Guide to All Federal Financial and Other
Domestic Programs. Omnigraphics, Incorporated, Detroit,
Michigan, 1989. NAL CALL NO: HC110.P63G69 1989-90
Elnicki, Susan E. and Bohdan R. Romaniuk. America's New
Foundations, Fourth Edition. The Taft Group, 12300 Twinbrook
Parkway, Suite 450, Rockville, MD, 1990. NAL CALL NO:
HV89.A4 1990
Fenwick, Judith, David A. Ross and Cynthia Schramm.
International Marine Science Funding. Woods Hole
Oceanographic Institution, Woods Hole, MA, 1990.
Ford, Joan G. INC. Magazine. Supplement, 1991
Howarth, William. The Law of Aquaculture: The Law Relating
the Farming of Fish and Shellfish in Britain. Fishing News
Books, Osney Mead, Oxford, England, 1990.
Jacobson, L.B. "Jake". Marine Partnerships: Their Various
Forms and Legal Ramifications. Marine Advisory Bulletin
No.13. University of Alaska, Sea Grant College Program, May
1982. NAL CALL NO: KFA1407.J32
Johnston, Archie. "Bank Loans: Presenting Your Case."
Aquaculture Today, Summer 1989, p. 34.
Kahklen, Kieth. "For Mariculturists, Getting Funds Tough." Alaska Journal of Commerce, v. 13(14), April 3, 1989, p. 17.
Lindbergh, Jon and Karen Pryor. "Six Ways to Lose Money in
Aquaculture." Aquaculture Magazine, May/June 1984, pp. 24-25.
NAL CALL NO: SH1.C65
Meigs, Frank E., III. "Lending to the Aquaculture Industry."
Journal of Commercial Bank Lending, v. 66, March 1984, pp.
20-8.
National Association of State Development Agencies. Directory
of Incentives for Business Investment and Development in the
United States. 2nd Edition New and Revised. The Urban
Institute, 2100 M. Street, N.W., Washington, DC. 1986. NAL
CALL NO: HD110.I53N3
Morris, Jane K. and Susan Isenstein, Eds. Pratt's Guide to
Venture Capital Sources. 13th ed. Venture Economics,
Needham, MA. 1989.
Rhodes, Raymond J. "Primer on Aquaculture Finances." [in
four parts]
"Planning for Success: Part I." Aquaculture Magazine,
Nov./Dec. 1983, pp. 16-20.
"Capital for Startup Ventures: Part II." Aquaculture
Magazine, Jan./Feb. 1984, pp. 21-25.
"Taxes, Time and Investors: Part III." Aquaculture
Magazine, March/April 1984, pp 22-25.
"Avoiding a Cash Crisis: Part IV." Aquaculture Magazine,
May/June 1984, pp. 32-35. NAL CALL NO: SH1.C65
Stoner, Charles R. and Fred L. Fry. Strategic Planning in the
Small Business. South-Western Publishing Co., Cincinnati,
Ohio. 1987. NAL CALL NO: HD62.7.S85
Taylor, James W. How to Create a Winning Business Plan.
Asher-Gallant Press, Westbury, NY. 1986. NAL CALL NO:
HD62.7.T38
Tiddens, Art. Aquaculture in America: The Role of Science,
Government, and the Entrepreneur. Westview Press, Boulder,
CO, 1990. NAL CALL NO: HD9455.T53
Watters, Michael P. and Clyde E. Herring. "Accounting
Standards for Aquaculture Producers: What CPAs Think."
Arkansas Business and Economic Review, v. 23(8), Summer 1990,
p. 11.
Wilkerson, Jan. "Public Offering to Reel in Acquistion
Funds." The Business Journal of Portland, Oregon, v. 5(30)s1,
September 1988, p. 1.
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