Maritime Administration Announces 2012 Small Shipyard Grant Program

New Development

On December 12, 2011, the Maritime Administration ("MARAD") issued a Notice of Small Shipyard Grant Program, which will provide for financial assistance to small shipyards (the "Grant Program"). For 2012, there is a total of $9,980,000 available for grants to be used for capital improvements and related infrastructure improvements for eligible shipyards. All applications must be received by MARAD no later than 5 p.m. EST on January 17, 2012. MARAD intends to award the grants by March 18, 2012. The Notice can be accessed here.

The 2012 Grant Program

Use of Funds and Matching Requirements

As in previous years, the grants awarded under the Grant Program must be used to facilitate the efficiency, cost-effectiveness, and quality of domestic ship construction, repair, and reconfiguration of commercial and federal ships. In addition to capital and related improvements, grant funds may also be used for maritime training programs to foster technical skills and operational productivity. Grants are not available for the new construction of buildings or other facilities and may not be used to purchase land, unless approved by MARAD as being consistent with, and supplemental to, capital and related infrastructure improvements. Grant funds will only be awarded for up to 75% of the cost of any project, unless MARAD determines that a proposed project merits a higher award. Accordingly, the Grant Program requires that the shipyard put forth the remaining 25% of the funds required to complete the project. No more than 25% of the grant funds available will be awarded to shipyards in any one geographic location that have more than 600 production employees. In addition, MARAD will not fund projects that require waterside improvements, such as dredging, pier work, etc.

Shipyard Eligibility

An eligible shipyard is one which: 1) is located in or near a maritime community, in a single geographical location; 2) employs less than 1,200 production employees; and 3) constructs or repairs commercial or government vessels 40 feet in length or greater. The applicant must be the actual operator of the shipyard. MARAD will also take into consideration: a) the economic circumstances and conditions of the maritime community where the shipyard is located, and b) the economy of the local, State, and regional areas in which the maritime community is located.

The Application

Applicants should complete Form SF-424 (available for download at www.grants.gov) and...