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MARBIDCO Loan Programs

Maryland Remote Setting Shellfish Aquaculture Financing Fund

Helping Watermen Start & Expand Aquaculture Operations

To date, MARBIDCO has approved 5 remote setting aquaculture loans.

In partnership with the Maryland Department of Natural Resources (DNR), the Maryland Remote Setting Shelfish Aquaculture Financing Fund provides affordable financing to commercial watermen who want to start or expand shellfish remote setting aquaculture operations. The University of Maryland Extension (UME) is also contributing to this effort by providing training and business planning assistance to current and prospective shellfish growers.

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Tiny oyster shells

Overview

Working in collaboration with DNR and using Maryland Port Administration (MPA) funds, this program provides affordable financing to commercial watermen who want to start or expand shellfish remote setting (nursery) aquaculture operations.

Persons holding a nursery permit or those people who hold a permit or have applied for aTFL license are are eligible to apply. In addition, all applicants must have production and business plans that demonstrate the financial feasibility of the planned aquaculture operation.

The nursery grower purchases larvae from a hatchery and places it in a tank containing cultch for the larvae to set on. Spat on shell setting systems consist of a tank, pump, piping and valves, and a blower to provide low pressure air to circulate larvae during setting. Seed (larvae), shell (substrate), and tank heaters (during cooler months) are also needed.

Minimum / Maximum Loan Amounts: $5,000 to $30,000  

Eligible Expenses: Items related to commercial remote setting aquaculture projects, with approved business plans, to raise oysters or clams in Maryland, including the following equipment items:

  • Seed (larvae)
  • Shell (substrate)
  • Tanks
  • Pumps
  • Blower
  • Valves
  • Tank Heaters

Application Submission Process

Success Story

Eric Wisner Oysters, LLC obtained two Maryland Remote Setting Shellfish Aquaculture loans from MARBIDCO (2012 and 2017) to assist with purchase of equipment, seed/larvae and shell.

Mr. Wisner holds multiple shellfish aquaculture leases from the Maryland Department of Natural Resources and he operates in Nanticoke River in Wicomico County.

The remote setting loan funds have assisted him in expanding the remote setting operation from six to 10 tanks.

All applications to the Maryland Remote Setting Shellfish Aquaculture Financing Fund (including any required attachments) should be submitted as soon as completed, as loans will be processed in the order they are received. Additional information about the shellfish remote setting aquaculture financing program is provided in the application.

Loan Terms and Conditions: $5,000-$15,000 (5 years); and $15,001-$30,000 (6 years) – with the first year interest-only).

MARBIDCO Interest Rate: 5.25%

Loan Origination Fee: None

Basic Eligibility Requirements

There are three basic requirements to be eligible to receive funding under this program:

  1. An applicant must either hold an aquaculture nursery permit from DNR currently, or have applied for such a nursery permit;
  2. An applicant must demonstrate that the proposed shellfish remote setting aquaculture production will occur within the year;
  3. At least one of the applicants must be a commercial waterman who holds a tidal fisheries license (TFL).

The borrower should have a credit bureau score of at least 620 and no bankruptcy within the last seven years. For borrowers with credit scores of less than 620, a qualifying loan co-signer will be required. Personal guarantees from the principal business owners will also be required. Other guarantees may be required.

The goal of this program is to help fund applications that have the best chance of success in terms of financial viability and getting juvenile shellfish to market. A Shellfish Aquaculture Financing Committee will evaluate the credit-worthiness of the prospective borrower(s), as well as the viability of the proposed project production and business plan (including the financial projections) that are required to be submitted with the application for financial assistance.

The Committee consists of knowledgeable representatives from the Maryland Department of Natural Resources, the University of Maryland and MARBIDCO. Projects with insufficient production and business plans and future projections of positive cash flows will not be approved, however these may be revised and re-submitted in the future.