Maryland Shellfish Aquaculture Financing Fund

MARBIDCO is partnering with the Maryland Department of Natural Resources (DNR) to help make affordable, subsidized loan financing is available to commercial watermen and other entrepreneurs wishing to start or expand shellfish aquaculture operations. The University of Maryland is also contributing to this important effort by offering training and business planning assistance to current and prospective commercial shellfish growers.

Overview

Persons holding State submerged land or water column aquaculture leases, or those people who have applied for such leases are eligible to apply. In addition, all applicants must have production and business plans that demonstrate the financial feasibility of the planned aquaculture operation.

Loan Terms and Conditions

Minimum/maximum loan amounts: $5,000 / $100,000

Basic eligibility requirements: There are two basic requirements to be eligible to receive funding under this program:

1) An applicant must either hold a shellfish aquaculture lease from DNR currently or have applied for such a lease; and

2) An applicant must demonstrate that the proposed shellfish aquaculture production will begin within 12 months of lease approval.

Priority will be given to applicants who have received less than $100,000 in Shellfish Aquaculture funding previously from MARBIDCO.

Eligible Expenses

Loan funds may be used to purchase substrate (e.g., shell), seed (or larvae), or capital equipment with a 15-year life expectancy with routine maintenance. 

On-bottom and water column (i.e., cages or floats) aquaculture production projects are all potentially eligible to be funded. However, the purchase of motor vehicles, including boats and trucks, are not an eligible expense under this program. 

All borrowers must indicate where they plan to purchase shell or substrate.

  • Substrate and Seed – maximum of 5 years (1-3 years interest-only and 2 years P&I)

  • Capital Equipment – maximum of 7 years (1-3 years interest-only and 4 years P&I)

  • Blended Purchases – maximum of 6 years (1-3 years interest-only and 3 years P&I)

Borrower credit history: 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.

Loan repayment assistance

  • First-Time Borrowers: 40% principal forgiveness (up to a maximum of $100,000)

  • Existing Borrowers: 25% principal forgiveness ($100,000 to $300,000)

Application Submission Process

All applications 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 aquaculture financing program is provided in the application. A project financing submission checklist is included at the end of the application form which should be reviewed carefully.

MARBIDCO Interest Rate: 5.25% (This is the maximum rate; the rate can be as low as 3.00% during the first one to three years of the term of the loan depending on the length of the interest-only period that is needed.)

Loan Origination Fee: None

Equity Requirement: At least 10% of the loan amount (as a cash contribution used to implement the aquaculture project - however, ownership of a commercial workboat could help to satisfy this requirement).

Send a completed and signed original application form, including all the required attachments to: MARBIDCO Loan Programs Office, Attn: Brittany Rawlings, 1410 Forest Drive, Suite 21 Annapolis, MD 21403 or email to brawlings@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.

“We are very thankful that MARBIDCO was able to step in and fill a critical supportive role in the industry. But we are most thankful for the people who work at MARBIDCO ‐  they have been nothing short of helpful, professional, and on the ball from the get‐go. It’s been a pleasure dealing with them.” 

– Patrick Hudson, True Chesapeake Oyster Company