Federal Ship Financing Guarantees

To finance eligible vessels and shipyards to promote the growth and modernization of the U.S. Merchant Marine and U.S. shipyards. The Federal Ship Financing Program (commonly referred to as "Title XI" based on the part of the Merchant Marine Act of 1936 that established the program) provides long-term loans by the Maritime Administration (MARAD). Through these loans, the Title XI Program encourages U.S. shipowners to obtain new vessels and recondition existing vessels with U.S. shipyards cost effectively. It also assists U.S. shipyards with modernizing their facilities for building and repairing vessels to strengthen competitiveness and support increased productivity.

An individual, corporation, partnership, limited partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or other acceptable legal business entity, government, or any agency or political subdivision thereof seeking to finance the construction, reconstruction or reconditioning of an eligible vessel or finance modernization of a domestic shipyard.

MARAD evaluates applications and advises applicants of approval or disapproval. Final approvals are granted by the Maritime Administrator.

The Maritime Administration is required to approve or deny an application within 270 days of receiving a completed application. The deadline may be extended up to two years by applicant. Application processing times vary based on complexity of the project and/or transaction structure and the responsiveness of the applicant during the MARAD review.