Agribusiness Equipment and Working Capital Loan Fund

Overview

The major aim of the Agribusiness Equipment and Working Capital Loan Fund program is to help rural businesses innovate, diversify, and exploit emerging market opportunities.

The program helps address the unique financing needs of Maryland's agribusinesses that are not otherwise able to obtain commercial financing for working capital and equipment purchases from traditional commercial lenders such as banks or farm credit associations.

Loan Terms and Conditions

All applications must be originated by the applicant and the partnering lending organization. Cooperative Extension agents, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received.

Minimum / Maximum Loan Amounts: $15,000 / $100,000

Loan Terms: Equipment: 3 to 8 years (with up to 12 months interest-only possible). Operating Loan: 1 to 2 years (with up to six months interest-only possible).

MARBIDCO Interest Rates:

  • With partnering public sector lender involved, 4.75%.

  • Without a partnering public sector lender, 6.75%.

Loan Origination Fee: 1% of the loan amount  

Equity Requirement: Typically, 10% of a project’s total cost.

Public Sector Lender Participation: A public sector commercial lender may participate in the application process by both committing to a certain level of matching financing and by completing a form that is included in the application packet.

Commercial Lender Involvement: If an applicant is coming without a public sector lender, then 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 the owners of the business.

Send Completed Applications to: MARBIDCO Agribusiness Loan Program, 1410 Forest Drive, Suite 21, Annapolis, MD 21403 or info@marbidco.org.

Equity Incentive Programs

MARBIDCO also offers lending incentive grants that have a 5% equity contribution towards eligible MARBIDCO loans, up to the maximum loan amount depending on the program. These matching grants are offered in eight counties along the Upper Eastern Shore and in Southern Maryland, including Anne Arundel, Calvert, Cecil, Charles, Kent, Queen Anne's, Prince George's, and St. Mary's Counties. Read more about the Upper Shore and the Southern Maryland grants below.