Maryland Resource-Based Industry Financing Fund (MRBIFF)

NOTICE TO LENDERS AND PROSPECTIVE APPLICANTS:

The MRBIFF Loan Program is transitioning from a direct lending program into a loan participation program. 

MARBIDCO accepts applications under the direct lending program until that transition is complete. 

Overview

The MRBIFF program offers low-interest loans to agricultural/RBI-industry enterprises to purchase land and capital equipment for production and processing activities. Through the MRBIFF program, MARBIDCO will provide between 20% and 40% of the debt financing for a project, with a commercial lender and/ or public entity providing an equal or greater financial commitment. 

Maximum Loan Amounts

  • $300,000 for the acquisition of equipment and fixed assets.

  • $600,000 for real estate purchases and renewable energy projects.

  • $1,000,000 for large-scale food/fiber processing projects (but not more than 25% of the project cost).

Equity Requirement

Typically, 10% of a project’s total cost (Can be less for young/beginning farmers; poultry projects may not exceed a maximum combined loan-to-value of 92%)

Commercial Lender Is Required

MARBIDCO can provide supplemental loan proceeds within a range of 20% to 40% of the total commercial financing needed, working with a commercial bank and/or public sector lender. (Illustration: If a bank is willing to loan $60,000 for a $100,000 business activity contingent on MARBIDCO’s participation, MARBIDCO may loan up to an additional $40,000 for such a project.) A 50/50 participation is possible under extraordinary circumstances.

Application Submission Process

All MRBIFF loan applications will be developed and submitted to MARBIDCO by a commercial bank or Farm Credit Association loan officer (possibly in consultation with other rural business advisors), and/or a Farm Service Agency representative.

However, until the new loan participation program begins, MARBIDCO will make and service its own loans. Concerning collateral security, MARBIDCO will generally take a subordinate lien position to that of the bank.

MARBIDCO Interest Rate: 4.75% for the first 3 years, 5.25% for the next three years, and 5.75% for the remaining loan term.

Loan Origination Fee: 1% of MARBIDCO loan amount.

Loan terms: Equipment, is 5 to 7 years. Land is 10 to 30 years (typically with a 10-year balloon).

Email completed applications to Brian Cadden at bcadden@marbidco.org or mail to Loan Programs, c/o Brian Cadden, 1410 Forest Drive, Suite 21, Annapolis, MD 21403

Equity Incentive Programs

These two partnership programs below work in tandem with MARBIDCO and are designed to incentivize loan requests from farmers in eight counties of Maryland: Anne Arundel, Calvert, Charles, Prince George's, St. Mary's in Southern Maryland and Cecil, Kent and Queen Anne's on the Eastern Shore.

Each MARBIDCO loan program has its own eligibility criteria and application/approval process. Both programs will contribute up to a maximum of $15,000 towards a MRBIFF Program loan, and in all other loan programs the equity incentive match would be capped at $5,000 (per applicant). A match of 5% borrower equity is generally required in order to obtain the incentive funds. Click below: