The US Maritime Administration has introduced revised rules for the Title XI vessel and shipyard financing program, including lower application costs and a simplified regulatory structure. The interim final rule became effective on 28 August.

Under the changes, the standard application fee has been reduced to $1,000 from $5,000. The agency said the reduction is aimed at lowering the financial barrier for prospective applicants with limited capital resources and increasing access to the program.

A new commitment fee has also replaced the previous investigation fee. The charge is limited to either one-quarter of one per cent of the guaranteed note or $250,000. The change is intended to prevent larger projects from facing disproportionately high initial expenses.

The regulatory framework has been reduced from 34 sections by removing 14 sections. Static terms previously contained in the regulations will instead be placed in standard loan documents, with the changes designed to reduce paperwork and application errors.

The revised rules also incorporate current Office of Management and Budget credit standards. These standards were not in place when the regulations were established in 1978. According to the agency, applying the current standards will help address default risk associated with federally guaranteed debt.

Provisions allowing financing for export vessels have been removed as well. Legislative changes under the National Defense Authorization Act for Fiscal Year 2020 repealed the statutory authority covering those projects.

The amendments entered into force immediately because they reflect requirements already established by statute rather than discretionary policy changes. The public comment period will remain open for 60 days, ending on 27 October.