March 2009
Norman A. Peloquin, Esq.
Carolyn P. Medina, Esq.
As part of the American Recovery and Reinvestment Act of 2009 ('ARRA"), the federal
government has allocated $98,000,000 for the capital improvement of small shipyards and
for training of workers in maritime industries. Details of these grants were released by
the Maritime Administration on March 5, 2009. Applications for grants will be accepted until
April 20, 2009, and awards are expected to be made by August 17, 2009.
Specifically, ARRA authorized the Maritime Administration to make grants for:
- Capital and related improvements in small shipyards located in or near maritime
communities;
- Training for workers in communities whose economies are related to the maritime
industry; and
- Other purposes as the Administrator determines to be consistent with and supplemental
to such activities.
A "small shipyard" is defined as a shipyard facility in one geographic location that
does not have more than 1,200 employees. Seventy-five percent of the available funds,
however, are to be awarded to shipyards with fewer than 600 employees.
Factors that will be considered when the Maritime Administration makes grant awards include:
- The
economic circumstances and conditions of the maritime community near to which a shipyard
facility is located;
- Projects that would be effective in fostering efficiency,
competitive operations, and quality ship construction, repair and reconfiguration;
and
- Projects that would be effective in fostering employee skills and enhancing
productivity.
Grant moneys generally cannot be used to purchase land or buildings and are subject to a
twenty-five percent matching requirement.
ARRA's small shipyard grant program is an expansion of a program that began in 2008,
when the federal government allocated approximately $10 million in grants to nineteen
recipients. Examples of projects funded last year include grants made to:
-
Upgrade metal equipment, machine shop and painting equipment;
-
Purchase metal cutting machinery, boat transfer equipment, hydraulic buggies, winches,
mobile cranes, jibs, overhead cranes and travel lifts;
-
Upgrade and extend a railway assembly and dock;
-
Purchase a computerized plasma cutting table; and
-
Renovate and expand an assembly building.
Click here for Links to application forms and detailed application requirements.
We would look forward to the opportunity to assist with the grant application process or to answer any questions you may have.
