hopyard

Maryland Vineyard/Hopyard/Orchard Planting Loan Fund

Overview

MARBIDCO offers this affordable loan program to meet the unique financing needs of Maryland's landowners wanting to establish or expand vineyards, orchards, and hopyards. 

A major aim of the Maryland Vineyard/Hopyard/Orchard Planting Loan Fund program is to increase the acreage of viable commercial vineyards, orchards, and hopyards in Maryland.

MARBIDCO provides low-cost financing services in conjunction with a private commercial lender to make financing both available and affordable. This program is supported by the Maryland Wineries Association and the Maryland Grape Growers Association.

Eligible Expenses: The requested financial assistance from MARBIDCO must relate to the installation of new vineyards, tree fruit orchards, or hopyards including, but not limited to:

  • Prepping of land for plant installation

  • Purchase of vines or trees

  • Equipment and supplies

The purchase of tractors, pick-up trucks, and wine-making equipment are not eligible for financing under this particular program but are eligible for financing under other MARBIDCO programs including the MRBIFF and Agribusiness Equipment and Working Capital Loan Fund.

Application Submission Process

All applications must be originated by the applicant, Cooperative extension agents, Maryland Forest Service, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received.

Each loan application will be reviewed for financial viability by a panel of agricultural lenders at MARBIDCO, and operational, vinicultural, and/or enological viability by members of the wine/grape industry’s viticulture committee (or other appropriate university experts).

MARBIDCO will make and service all loans, and all loans must be fully collateralized. Borrowers have some flexibility in choosing the loan repayment terms that best fit their needs.

Applications are reviewed as they are received and typically take 3-4 weeks to process. Incomplete applications that are submitted will delay the review process.

Loan Terms and Conditions

Minimum / Maximum Loan Amounts: $10,000 to $100,000 

MARBIDCO Interest Rate:

  • Option 1: Adjustable Interest and Principal Payments: 5.00% for the first three years, then adjusting to 6.25% for the balance of the loan term.
    Option 2: Interest-Only Payments for First Three Years; P&I Thereafter: 6.25% (fixed rate) during the entire term of the loan, but the borrower may elect to make interest-only payments during the first 3 years.

Loan Origination Fee: 1% of the loan amount  

Equity Requirement: Typically, 10% of a project’s total cost, but grant funds can also qualify. 

Commercial Lender Participation (Required): A commercial lender must participate in the application process by providing a letter of referral.

Send Completed Applications to: MARBIDCO Loan Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403 or email to info@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.