Maryland Resource-Based Industry Financing Fund Loan (MRBIFF)
To apply, see the Applications page
The MRBIFF program makes available low-interest loans to qualified applicants for the purchase of land and capital equipment for business activities that were briefly described above.
MARBIDCO may provide financing in the range of 20% (minimum) to 40% (maximum) of the financing needed to fund a project under the condition that a commercial lender (and/or a public instrumentality) has an equal or greater financial commitment in the project.
All loan applications will be developed and submitted to MARBIDCO by commercial bank or Farm Credit Association loan officers (possibly in consultation other rural business advisors). However, MARBIDCO will make and service its own loans. With respect to the collateral security, MARBIDCO will generally take a subordinate lien position to that of the bank.
Loan Terms and Conditions
Commercial Lender Participation: Required. MARBIDCO can provide supplemental loan proceeds of up to 100% of amount of the commercial lender financing. (Illustration: If a bank is willing to loan $60,000 for a business activity contingent on MARBIDCO’s participation, MARBIDCO may loan up to an additional $40,000 for such a project.)
Maximum Loan Amount: $250,000 for acquisition of equipment and fixed assets. $450,000 for real estate purchases and renewable energy project. $650,000 for large-scale food/fiber processing projects (of $2.5 million and up).
Equity Requirement: Typically 10% of a project’s total cost (can be less for young/beginning farmers).
MARBIDCO Interest Rate: 3.25% APR for the first 3 years, 4.5% APR for the next three years and 5.75% for the remaining term of the loan.
Loan Origination Fee: 1% of MARBIDCO loan amount (paid at closing to MARBIDCO).