Program Overview
The program helps rural businesses innovate, diversify, and take advantage of emerging market opportunities. It addresses the financing needs of Maryland agribusinesses unable to obtain commercial financing for working capital and equipment purchases from traditional lenders.
Application Development
Applications must be originated by the applicant and partnering lending organization. Cooperative Extension agents, county agricultural marketing officials, and other business professionals may assist.
$15,000
Minimum loan
$100,000
Maximum loan
4.75%
With public-sector lender
6.75%
Without public-sector lender
Public Sector Lender Participation
A public-sector commercial lender may participate in the application process by committing to a specified level of matching financing and completing a form included in the application packet.
Commercial Lender Involvement
If an applicant is coming without a public-sector lender, a commercial lender provides a credit denial letter or completes the commercial lender referral form included in the application packet
Personal Guarantee
Required. All loans made to a business entity must be personally guaranteed by its owners.
Loan Terms and Conditions
Loan Terms
Equipment: 3 to 8 years, with up to 12 months interest-only. Operating loan: 1 to 2 years, with up to six months interest-only.
Fee and Equity
Origination fee: 1% of loan amount. Typical equity requirement: 10% of project cost.
Application Submission Process
Originate application
Applications are originated by the applicant and partnering lending organization.
Submit application
Send to:
MARBIDCO Agribusiness Loan Program, 1410 Forest Drive, Suite 21, Annapolis, MD 21403, or info@marbidco.org.
Processing
Applications are processed as received.
Equity Incentive Program
The Upper Shore Regional Council and MARBIDCO offer a 5% equity contribution toward eligible loans for farmers in Cecil, Kent, and Queen Anne's counties, up to the applicable program maximum.