Maryland Remote Setting Shellfish Aquaculture Loan Fund

In partnership with the Maryland Department of Natural Resources (DNR), the Maryland Remote Setting Shellfish Aquaculture Financing Fund provides affordable financing to commercial watermen who want to start or expand shellfish remote-setting aquaculture operations. The University of Maryland Extension (UME) is also contributing to this effort by providing training and business planning assistance to current and prospective shellfish growers.

Maryland Remote Setting Shellfish Aquaculture Loan Fund

Working in collaboration with DNR and using Maryland Port Administration (MPA) funds, this program provides affordable financing to commercial watermen who want to start or expand shellfish remote setting (nursery) aquaculture operations.

Persons holding a nursery permit or those people who hold a permit or have applied for a TFL license are eligible to apply. In addition, all applicants must have production and business plans that demonstrate the financial feasibility of the planned aquaculture operation.

The nursery grower purchases larvae from a hatchery and places them in a tank containing cultch for the larvae to set on. Spat-on shell setting systems consist of a tank, pump, piping and valves, and a blower to provide low-pressure air to circulate larvae during setting. Seed (larvae), shell (substrate), and tank heaters (during cooler months) are also needed.

Loan Terms and Amounts

Additional information about the shellfish remote setting aquaculture financing program is provided in the application.

Minimum / Maximum Loan Amounts: $5,000-$15,000 (5 years); and $15,001-$30,000 (6 years) – with the first-year interest-only).

MARBIDCO Interest Rate: 5.25%

Loan Application Fee: None

Borrower equity: At least 10% of the loan amount (as a cash contribution used to implement the aquaculture remote setting business project).

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. Personal guarantees from the principal business owners will also be required. Other guarantees may be required.

The University of Maryland Extension (UME) is also contributing to this effort by providing training and business planning assistance to current and prospective shellfish growers: https://extension.umd.edu/resource/aquaculture-programs/

Basic Eligibility Requirements

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

1) An applicant must either hold an aquaculture nursery permit from DNR currently, or have applied for such a nursery permit;

2) An applicant must demonstrate that the proposed shellfish remote setting aquaculture production will within the year.

Eligible Expenses: Items related to commercial remote setting aquaculture projects, with approved business plans, to raise oysters or clams in Maryland, including the following equipment items:

  • Seed (larvae)

  • Shell (substrate)

  • Tanks

  • Pumps

  • Blowers

  • Valves

  • Tank Heaters

All applications to the Maryland Remote Setting Shellfish Aquaculture Financing Fund (including any required attachments) should be submitted as soon as completed, as loans will be processed in the order they are received. 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.