04/07/2015 05:25 EDT | Updated 06/07/2015 05:59 EDT

Newfoundland government loans money to sealing facilities to finance seal trade

ST. JOHN'S, N.L. - The government of Newfoundland and Labrador is contributing money to support the province's sealing industry.

The provincial government says it will provide $2 million to two different processing facilities.

Carino Processing Ltd. in South Dildo and PhocaLux International Inc. in Fleur de Lys will each get up to $1 million.

The government offered Carino Processing loans of up to $3.6 million in 2012 and 2013, which were repaid with interest within those years.

In 2014, Carino Processing announced it had secured private investment to finance future purchases.

At the time, the provincial government congratulated the facility for proving the sealing industry was economically viable.

This year's $2 million loan will go towards the facilities' purchase of seal products, which the government says will ensure income for sealers and processing workers while also supporting the long-term stability of fish stocks.