Program Overview
The Maryland Oyster Shucking House Loan Fund has been established by MARBIDCO to help finance the cost of eligible seafood processing projects, including historic oyster shucking facilities and to facilitate an increase in the amount of oyster shells retained in the State and returned to the Chesapeake Bay. As a result of legislation enacted in 2022 (Senate Bill 830), MARBIDCO received $1 million to operate the new Oyster Shucking House Loan Fund program. This legislation enables MARBIDCO to offer loans of up to $250,000 to finance the eligible costs of qualifying oyster processing business projects (under certain terms and conditions).
Loan amounts can range from a minimum of $25,000, up to a maximum of $250,000, which is dependent upon the number of full-time jobs or seasonal full-time jobs being created or retained. For each full-time job projected to be created or retained, MARBIDCO can provide $25,000 in financing.
Loan proceeds can be used to renovate or construct a new oyster processing facility or expand an existing one, as well as purchase oyster processing equipment. Eligible applicants must have been a licensed Maryland Seafood Dealer for at least three years OR be a TFL-holder for at least five years and agree to obtain a Seafood Dealer License if approved for financing. Applicants must also have paid all applicable taxes and fees for the last five years. Submission of a business plan, including financial projections, is required.
This program can offer standalone financing or can work in conjunction with another MARBIDCO loan program.
Eligibility
Licensed Maryland Seafood Dealer for at least three years, or TFL holder for at least five years who agrees to obtain a Seafood Dealer License if approved
All applicable taxes and fees paid for the last five years
$25,000
Minimum loan
$250,000
Maximum loan
3.25%
Fixed rate
$25,000
Per job created or retained
Loan Terms and Conditions
Equity Requirement and Match
At least 3% of project cost. MARBIDCO matches the equity contribution dollar-for-dollar up to 5% of project cost, capped at $12,500, in Cecil, Kent, and Queen Anne’s counties.
Working Capital
New facilities: at least 15% of project cost in cash or bank line of credit. Other applicants: at least 10% working capital.
Loan Terms and Collateral
Term corresponds to useful life of financed assets, following up to six months interest-only. Appropriate collateral is required. The origination fee is waived.
Personal Guarantees
Normally required. Owners of business entities must also provide guarantees.
Application Submission Process
Prepare attachments
Applications should include all required attachments listed in the application checklist.
Submit application
Send to:
skubofcik@marbidco.org or MARBIDCO Loan Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403.
Processing
Applications are processed as received..