August 5, 2009

SSAP/Title XI Funding in FY10 Senate Appropriations Bill

$17.5 million for the Small Shipyard Assistance Program (SSAP), and $14 million for the Title XI program were included in the Senate Transportation, Housing and Urban Development Appropriations Bill today. Conference consideration is expected this fall.

Title XI, established pursuant to title XI of the Merchant Marine Act, 1936, provides for a full faith and credit guarantee by the U.S. Government of debt obligations issued by (1) U.S. or foreign ship-owners for the purpose of financing or refinancing either U.S.-flag vessels or eligible export vessels constructed, reconstructed or reconditioned in U.S. shipyards and (2) U.S. shipyards for the purpose of financing advanced shipbuilding technology and modern shipbuilding technology of a privately owned general shipyard facility located in the United States. The Program is administered by the Secretary of Transportation acting by and through the Maritime Administrator.

SSAP, as authorized by section 3506 of the National Defense Authorization Act for Fiscal Year 2006, provides assistance in the form of grants, loans, and loan guarantees to small shipyards for capital improvements. Most recently, $117.5 million was dispersed in funding through both Senate Appropriations and the American Recovery and Reinvestment Act.

SCA remains the sole industry-wide advocate for this program. The full text of the legislation can be found HERE.