Maryland Urban Agriculture Commercial Lending Incentive Grant

Overview

Beginning urban farmers face major challenges, but despite these challenges, they are uniquely positioned for niche food business success due to several characteristics. Because beginning urban farmers operate small growing operations and must maximize productivity, they are known to be innovative, thrifty, and resourceful. In addition, they are keenly aware of the interaction between their farming operations, the environment, and the community in which they operate.

They know how to market and distribute their fresh products locally in an impactful and profitable manner, particularly in retail settings (e.g., farmers markets, sidewalk stands, etc.). Some urban farmers do not utilize just one distribution channel, but they optimize their distribution channel mix (both wholesale and retail) to achieve desired business results.

Despite these advantages, the up-front costs of starting a growing operation are typically too great for many beginning urban farmers, and few financing programs are available to help meet their needs, particularly concerning "equity capital". For many beginning urban farmers, a very small amount of equity capital could make a significant difference in helping these business owners obtain bank financing (commercial loans) that facilitates business success.

This grant is designed to meet this need, by providing an incentive for beginning urban farmers to seek commercial lender financing for the development of their urban agricultural enterprises, including the purchase of a farm property in an eligible urban area. MARBIDCO has partnered with Horizon Farm Credit to establish and manage this fund.

Eligibility

Applicants must be Beginning Urban Farmers, which are defined as being farmers (either individuals or incorporated businesses) with the principal operator(s) having:

  • 10 or fewer years of commercial farming experience – either in a for-profit or not-for-profit setting or having limited personal or business financial resources (net worth less than $300,000);

  • A commercial food/fiber growing operation located in an urban area as defined by the United States Census Bureau and ​any incorporated municipality recognized by the State of Maryland.

Eligible business activities include the purchase of:

  • Real estate

  • Agricultural inputs and supplies such as seeds, fertilizer, compost, and baskets.

  • Farm tools and equipment.

  • Greenhouses, high tunnels, refrigeration, and irrigation systems; and

  • Hired labor (at no more than 20% of the total eligible project cost).

Terms and Conditions

Maximum Grant Amount: $15,000 for equipment and working capital and $35,000 for real property, but no more than 25% of the project’s total cost.  In addition, the grant amount can be no more than 33% of the approved commercial loan for this project.

Minimum Grant Amount: $1,000. (This means there must be an approved commercial loan of at least $3,000.)

Commercial Lender Participation: Required. A commercial lender must have approved a loan to fund the proposed urban farming project before a grant will be awarded.

Disbursement of Funds: Funds will be disbursed to approved applicants on a schedule to be determined when the grant is awarded.

Application Submission Process

Applicants must verify in their application that commercial lender or Farm Service Agency loan proceeds are available to help complete the proposed farming project.

Applicants who are awarded grants may not materially deviate from their approved business plans without approval from MARBIDCO and the participating commercial lender.

Send the completed application to MARBIDCO Urban Agricultural Grant, 1410 Forest Drive, Suite 21, 20403, or email to info@marbidco.org.