Why CSBFP fits marina and marine service businesses
A marina is one of the most capital-intensive small businesses in Canada — fixed dock construction and floating dock systems alone can represent $300,000–$1,000,000 for a 50-slip operation. Boat hoists, travel lifts, and haul-out equipment each carry six-figure price tags. Fuel dispensing systems require tanks, pumps, containment, and compliance infrastructure. These costs map directly to CSBFP’s equipment and leasehold categories.
For marinas that own their waterfront property, the real property sub-limit ($1 million) applies to the land and dock infrastructure as well. The combination of equipment, leaseholds, and real property financing makes CSBFP particularly well-suited to marina acquisitions and capital expansions.
Eligible CSBFP costs for marinas
Dock systems and infrastructure
- Floating dock system: Aluminum floating docks with concrete or foam flotation — $1,200–$3,500 per linear foot installed, including finger piers, cleats, electrical pedestals, and water connections. A 50-slip marina with 2,000 linear feet of dock: $2,400,000–$7,000,000 for full new construction. Most CSBFP marina files involve dock replacement sections or expansion rather than full new builds; replacement of a 500 linear foot dock section: $600,000–$1,750,000.
- Fixed dock and pile system: Concrete or wood pile-supported fixed docks — $600–$1,500 per linear foot. More economical for protected freshwater locations.
- Shore power pedestals and electrical:20/30/50-amp shore power pedestals at slips — $1,500–$3,500 per pedestal installed.
- Water connections at slips: Freshwater hookup per slip — $500–$1,200 per slip installed.
- Gangway and ramp system: Adjustable aluminum gangway connecting shore to floating dock — $15,000–$60,000 depending on length and grade.
Boat hoists and travel lifts
- Hydraulic boat lifts (in-slip): Four-post hydraulic lift per slip for convenience berthing — $5,000–$15,000 per lift. Popular for covered storage slips.
- Shore station / canopy lift: Combined hoist and canopy system for dry-land boat storage — $8,000–$20,000 per unit.
- Travel lift / marine travel hoist:Rubber-wheeled mobile hoist for launching and hauling boats up to 30–75+ tonnes (Travelift, Acma, Marine Travelift) — $120,000–$500,000+ depending on capacity. The cornerstone of a full-service haul-out yard.
- Mobile boat hoist (small marina): Fork-type or sling-type hoist for boats to 5,000 kg — $30,000–$80,000.
- Jackstands and boat cradles: Adjustable steel jackstands and cradles for winter storage — $200–$500 per stand; a 200-boat winter yard: $40,000–$100,000.
Fuel dispensing system
- Above-ground fuel storage tanks:ULC-listed double-wall above-ground storage tanks for gasoline and diesel — $8,000–$25,000 per tank (10,000L).
- Marine fuel dispensers: ULC-approved marine fuel dispensers for dock-side fuelling — $5,000–$15,000 per dispenser.
- Containment and spill infrastructure:Secondary containment berm, overfill prevention, spill containment equipment — $5,000–$20,000.
- Total fuel system: A two-product (gasoline and diesel) fuel dock with two tanks and two dispensers, containment, and installation: $50,000–$100,000.
Boat storage buildings
- Dry boat storage building (clear-span):Steel clear-span storage building for dry indoor winter storage — $40–$80 per square foot for a purpose-built marine storage building. A 10,000 sq ft building: $400,000–$800,000. This is a major capital item often structured under CSBFP’s real property sub-limit if the building is permanently attached to owned land.
- Covered outdoor storage canopies:Fabric or steel canopy structures over gravel storage lots — $20–$40 per square foot.
Marine service shop
- Engine hoist and chain falls: For engine removal and installation — $3,000–$8,000.
- Marine service lift or jackstand system: Fixed-position lift for hull work — $8,000–$25,000.
- Outboard flushing station: Outboard engine test tank and flushing system — $2,000–$6,000.
- Power wash pad and pressure washer:Contained pressure wash pad for hull cleaning (bottom paint removal), with water treatment for environmental compliance — $15,000–$50,000.
- Compressors and hand tools: Air compressor, air tools, impact wrenches for service shop.
Facility leaseholds and amenities
- Washroom and shower building: For transient and seasonal boaters — $40,000–$120,000 depending on unit count and finish.
- Office and check-in facility: Marina office, pump-out station operator, chandlery retail — $25,000–$60,000 in leasehold improvements.
- Laundry room: Coin-operated laundry for transient boaters — $15,000–$30,000.
Real property: marina acquisition
When a marina is purchased as an owner-occupied business property (including the waterfront land and dock infrastructure), the real property sub-limit applies: up to $1,000,000 toward the purchase price and capital improvements. For acquisitions above the CSBFP ceiling, the structure is typically CSBFP for the first $1M + conventional or BDC financing for the remainder.
Revenue model: seasonal slip fees and ancillary services
Marina revenues are typically multi-stream and seasonal:
- Seasonal slip fees: The primary revenue stream. Annual slip fees in Canada: $2,500–$10,000+ per slip depending on size (20–45ft), location, and amenities. A 50-slip marina at average $4,500/slip = $225,000 in seasonal slip revenue at 90% occupancy.
- Transient dockage: Nightly fees for boaters passing through — typically $2.50–$5.00 per foot per night. Revenue depends on location (canal route, tourist corridor) and season length.
- Winter storage: Dry land storage for boats hauled for winter — $400–$1,200 per boat per season, depending on boat size and whether covered storage is included.
- Fuel sales: Margin on gasoline and diesel — typically $0.08–$0.20/litre margin on marine fuel. Revenue depends on location and traffic.
- Marine services: Haulout ($15–$25/ft), bottom painting, winterization, engine service, repairs. High-margin revenue that leverages the travel lift investment.
- Amenities: Pump-out fees, laundry, ice, pump-out service, chandlery sales.
Seasonal DSCR considerations
Marinas are strongly seasonal — most revenue is earned in a 5–7 month boating season. The DSCR model for a marina uses full-year debt service against full-season revenue. Because operating expenses (particularly labour and utilities) are also reduced in the off-season, the annual EBITDA typically reflects the seasonal surge well, but cash flow management between seasons requires attention.
For the lender’s DSCR analysis of a marina file, see the discussion of seasonal businesses in CSBFP for seasonal businesses — the operating-season surplus model and advance booking evidence are particularly relevant for marinas.
A worked example: freshwater marina expansion
An established freshwater marina (20-year operating history) invests in a travel lift and dock infrastructure expansion to add 20 slips and a haul-out service business:
- 35-tonne travel lift (Travelift): $180,000
- 200 floating dock sections (expansion, 20 slips): $85,000
- Shore power pedestals (20 slips): $45,000
- Pressure wash pad with containment: $35,000
- Fuel system upgrade (new dispenser + containment): $28,000
- Service shop leasehold improvements: $22,000
- Total: $395,000
Equity injection: $55,000 (approximately 14%). CSBFP loan: $340,000. Total non-RP: $395,000 — inside the $500K sub-limit ✓.
Additional revenue from expansion: 20 new slips at $4,200/season (90% occupancy) = $75,600. Haulout service from travel lift: 60 boats × $650 average haulout/launch charge = $39,000. Incremental annual revenue: $114,600. Incremental EBITDA (after labour and seasonal expenses): approximately $81,000. Annual debt service (CSBFP loan at 7.95%, 10-year amortization): approximately $49,600. Incremental DSCR: 1.63x ✓.