The Maritime Administration (Marad) issued a final rule yesterday updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI.
The final rule provides the application requirements for Marad loan guarantees for construction or reconstruction of a U.S.-flagged vessel or shipyard modernization.
The final rule establishes modern financial performance as well as initial and continuing creditworthiness criteria for Title XI loan guarantees. The rule will also provide applicants with more flexible repayments terms, aligning program regulations with the best practices of maritime industry lending and federal credit.
By introducing greater flexibility to the regulations governing the Title XI program, Marad will be able to adapt the terms of new loan guarantees according to the risks of particular projects.
The final rule will become effective 30 days after publication in the Federal Register, and can be found at regulations.gov, docket number MARAD-2023-0086.
