Rural Business Energy Efficiency Improvement Loan Fund
Overview
In collaboration with the Maryland Energy Administration and using Regional Greenhouse Gas Initiative (RGGI) funds, MARBIDCO offers affordable financing for projects to improve energy efficiency in food and fiber processing businesses.
The goal of this program is to help rural businesses to reduce energy consumption and at the same time, increase profitability.
This program offers a low-interest, microloan to enable farmers and agricultural-based industry business owners to implement recommendations of a third-party energy auditor. This program facilitates the purchase of equipment or technology related to lowering business-related energy consumption by providing below-market rate financing assistance.
Basic Eligibility Requirements
The borrower should have a credit score of at least 620 and no bankruptcies filed within the last seven years. Loans made under this program are unsecured. Only the personal guarantee of the borrowers and/or businesses are required. Loans will be fully amortized with terms not exceeding the anticipated savings payback period with at least a 1.0 – 1.0 ratio on the annual energy savings payback.
A copy of an energy audit or an ag energy management plan report (or an energy savings confirmation letter) provided by a qualified third-party energy auditor is required to be submitted with the application, as well as, a simple commercial lender referral.
Loan Terms and Conditions
Minimum / Maximum Loan Amounts: $5,000 / $30,000 Please note, that loan advances may not exceed the cost of actually making the improvements minus any grant incentive funding received for a project.
MARBIDCO Interest Rate: 4.50% (Fixed rate).
Grant Incentive: 10% of the loan amount (not to exceed $1,000).
Loan Origination Fee: $75 (Paid at closing to MARBIDCO).
Debt service coverage ratio: At least 1.0 – 1.0 ratio on the annual energy savings payback.
Application Submission Process
All applications must be originated by the applicant. Applications are processed in the order that they are received.
Send completed applications to: MARBIDCO Loan Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403 or email to 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.