Seafood/Aquaculture Loans

Maryland Shellfish Aquaculture Financing Fund

If you are looking for an oyster or aquaculture loan, we can help. MARBIDCO has partnered with the Maryland Department of Natural Resources (DNR) to help make affordable, subsidized aquaculture loan financing available to commercial watermen and other entrepreneurs wishing to start or expand shellfish operations. The University of Maryland also contributes to this important effort by offering training and business planning assistance to current and prospective commercial shellfish growers.

Program Oveview

MARBIDCO and the Maryland Department of Natural Resources provide affordable, subsidized financing to commercial watermen and entrepreneurs starting or expanding shellfish operations. The University of Maryland provides training and business planning assistance.

Applicants must hold, or have applied for, a State submerged land or water column aquaculture lease and have production and business plans demonstrating financial feasibility.

Basic Eligibility Requirements

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Hold or have applied for a DNR shellfish aquaculture lease

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Demonstrate production will begin within 12 months of lease approval

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Priority for applicants who previously received less than $100,000 in MARBIDCO shellfish aquaculture funding

$5,000

Minimum loan

$100,000

Maximum loan

5.25%

Maximum rate

None

Origination fee

Eligible Expenses

Funds may purchase substrate, seed or larvae, or capital equipment with a 15-year life expectancy. On-bottom and water-column projects may be eligible. Motor vehicles, including boats and trucks, are not eligible. Borrowers must identify where shell or substrate will be purchased.

Loan Terms and Conditions

Substrate and Seed

Maximum 5 years: 1–3 years interest-only and 2 years principal and interest.

Capital Equipment

Maximum 7 years: 1–3 years interest-only and 4 years principal and interest.

Blended Purchases

Maximum 6 years: 1–3 years interest-only and 3 years principal and interest.

Credit and Equity

Credit score of at least 620 and no bankruptcy within seven years. A qualifying co-signer is required below 620. Equity of at least 10% of the loan amount is required; ownership of a commercial workboat may help satisfy it.

Loan Repayment Assistance

First-time borrowers: 40% principal forgiveness up to $100,000. Existing borrowers: 25% principal forgiveness for cumulative borrowing from $100,001 to $300,000, subject to good standing and production-plan implementation.

Interest Rate

Maximum 5.25%; may be as low as 3.00% during the first one to three years depending on the interest-only period.

Application Process

Application Submission Process

1

Complete application

Review the project financing checklist and include required attachments.

2

Submit application

Send to:

MARBIDCO Loan Programs Office, Attn: Brittany Rawlings, 1410 Forest Drive, Suite 21, Annapolis, MD 21403, or brawlings@marbidco.org.

3

Processing

Loans are processed in the order received.

Equity Incentive Program

The Upper Shore Regional Council (USRC) and MARBIDCO have partnered to offer an incentive program targeted to farmers in these three Upper Shore counties: Cecil, Kent, and Queen Anne's. The program offers a lending incentive grant with a 5% equity contribution towards eligible MARBIDCO loans, up to the maximum loan amount, depending on the program. Read more about the Upper Shore Regional Council Farm Loan Equity Incentive Matching Fund below.