Forestry Equipment and Working Capital Loan Fund
A major aim of this program is to help forest products-related businesses innovate and take advantage of emerging market opportunities, or to make investments to help make business operations more sustainable.
Overview
The Forestry Equipment and Working Capital Loan Fund addresses the unique financing needs of Maryland’s forest products-related businesses for working capital and equipment purchases.
Because of the highly leveraged nature of many forest products industry businesses, MARBIDCO’s maximum outstanding aggregate portfolio balance under this loan program cannot exceed a total of $400,000. Because of this limitation, please contact the MARBIDCO office for guidance prior to completing an application.
Application Submission Process
All applications must be originated by the applicant. Cooperative Extension agents, Maryland Forest Service, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received.
Loan Terms and Conditions
Minimum/Maximum Loan Amounts: $15,000 / $150,000
Loan Terms: Equipment Loan: 3 to 6 years. Operating Loan: 1 to 2 years.
MARBIDCO Interest Rate: This will be established on a case-by-case basis based on the level of anticipated credit risk. The minimum interest rate for any loan made under this program will be 6.25% (Fixed rate).
Loan Origination Fee: 1% of the loan amount
Equity Requirement: Typically, 5-10% of a project’s total cost.
Lender Participation: Required. A commercial lender must participate in the application process by providing a letter of referral. An attachment to be completed by a financial institution describing current loan obligations is found near the end of the above application form.
Send Completed Applications to: MARBIDCO Forestry Loan Program, 1410 Forest Drive, Suite 21, Annapolis, MD 21403, or email to bcadden@marbidco.org.
Equity Incentive Program
The Upper Shore Regional Council (USRC) and MARBIDCO have partnered to offer an incentive program targeted to farmers in these three Upper Shore counties: Cecil, Kent, and Queen Anne's. The program offers a lending incentive grant with a 5% equity contribution towards eligible MARBIDCO loans, up to the maximum loan amount depending on the program. Read more about the Upper Shore Regional Council Farm Loan Equity Incentive Matching Fund below.
