Maryland Livestock Processing Loan Program

Maryland Livestock Processing Loan Fund Program

Overview

The Maryland Livestock Processing Loan Fund Program has been established by MARBIDCO, as a complement to USDA’s Meat and Poultry Intermediary Lending Program opportunity, to assist with the expansion of livestock processing capacity in Maryland. 

This program offers loans to eligible applicants to help start-up or expand small- and medium-sized USDA-inspected facilities in Maryland to increase the processing of meat, poultry, and blue catfish. (Large-sized meat and poultry processing companies are not eligible to participate in this program.) This program can offer standalone financing or can work in conjunction with other commercial lenders.

  • The loan proceeds for this program will be derived from the USDA Meat and Poultry Intermediary Lending Program Grant, with matching funds provided by MARBIDCO. MARBIDCO must submit all projects to USDA for approval before MARBIDCO can disburse funds.

  • Loan amounts can range from a minimum of $250,000 to a maximum of $2,500,000. Loan proceeds can be used to purchase real estate, construct a new or expand an existing processing facility, and purchase livestock processing equipment.  Priority will be given to the construction of new facilities, especially in underserved parts of Maryland.

  • MARBIDCO will also match the equity contribution of an approved applicant on a dollar-for-dollar basis up to 10% of the project costs, with the maximum equity grant award amount capped at $250,000. 

Loan Terms & Conditions

  • Equity Requirement and Match: The borrower must provide at least 7.5% of a project’s total cost as an equity contribution. MARBIDCO will match on a dollar-for-dollar basis the equity contribution up to 10% of the project cost (with a cap of $250,000).

  • Working Capital Requirement: Applicants constructing a new facility must demonstrate that they have a minimum working capital available of at least 10% of the project cost (either in cash or through a bank line of credit).

  • MARBIDCO Interest Rate:  4.00% (fixed).  

  • Loan Origination Fee:  0.25% of the loan amount (up to a maximum of $5,000).

  • Loan Terms/ Collateral:  The term of a loan will correspond to the useful life of the assets being financed, following an initial interest-only period (of up to 12 months). Other conditions will apply including the pledging of appropriate collateral security.

  • Personal Guarantee(s):  Required. Owners of business entities (e.g., an LLC) must also provide guarantees.

  • Application Submission Process: All applications must be originated by the applicants. Applications will be processed in the order received and subject to funds availability.

    Send Completed Applications to MARBIDCO Loan Programs, c/o Allison Roe, 1410 Forest Drive, Suite 21, Annapolis, MD 21403 

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