Program Overview
This program offers loans to eligible applicants to help start up or expand small- and medium-sized USDA-inspected slaughter facilities in Maryland, increasing 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 commercial lenders.
The loan proceeds for this program are derived from the USDA Meat and Poultry Intermediary Lending Program Grant, with matching funds provided by MARBIDCO. MARBIDCO must submit all projects to the USDA for approval before MARBIDCO can disburse funds.
Loan amounts range from $250,000 to $2,500,000. Loan proceeds can be used to purchase real estate, construct a new or expand an existing livestock 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 an approved applicant's equity contribution on a dollar-for-dollar basis up to 10% of the project costs, with the maximum equity grant capped at $250,000.
$250,000
Minimum loan
$2,500,000
Maximum loan
4.00%
Fixed rate
0.25%
Origination fee, maximum $5,000
Loan Terms and Conditions
Equity Requirement and Match
The borrower must provide at least 7.5% of project cost as equity. MARBIDCO matches equity dollar-for-dollar up to 10% of project cost, capped at $250,000
Working Capital Requirement
Applicants constructing a new facility must demonstrate working capital of at least 10% of project cost, in cash or through a bank line of credit.
Loan Terms and Collateral
The term corresponds to the useful life of financed assets, following an interest-only period of up to 12 months. Appropriate collateral security is required.
Personal Guarantees
Required. Owners of business entities must also provide guarantees. The requirement is waived for a 20% equity contribution, including MARBIDCO’s equity grant.dit.
Application Deadlines and Submission
Originate application
The applicant must originate all applications.
Processing
Applications are processed in the order received, subject to available funds.
Submit application
Send completed applications to:
MARBIDCO Loan Programs, c/o Allison Roe, 1410 Forest Drive, Suite 21, Annapolis, MD 21403.
The program was established by MARBIDCO as a complement to USDA’s Meat and Poultry Intermediary Lending Program to assist with expansion of livestock processing capacity in Maryland.