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Maryland Watermen's Microloan Program

MARBIDCO offers the Maryland Watermen’s Microloan Program to assist “generational watermen” purchase needed equipment or help with purchasing a workboat via low-interest, unsecured loans.

Overview

With the support of the Governor and Maryland General Assembly, MARBIDCO’s Maryland Watermen’s Microloan Program was revised during the FY 2025 session to better serve the commercial watermen community with the inclusion of the Potomac River Fisheries Commission (PRFC) members and the raising of the maximum amount of loans. 

Beginning July 1, 2024, the program is open to PRFC commercial fishermen, and the maximum amount of loan funds has been raised to $40,000 to help watermen purchase boats and equipment: $30,000 for a boat and an additional $10,000 for equipment. Through FY 2025 General Assembly legislation, MARBIDCO’s Board of Directors can now approve loans up to $20,000 in loan proceeds so that watermen can purchase equipment. (Applicants can apply for a microloan of up to $20,000 when purchasing equipment only.)

Eligibility: During the first three years of the Program (beginning July 2022), a loan can only be made under what the law defines as a “generational waterman”. This means from July 1, 2022, to June 30, 2025, only generational watermen are eligible to apply for this loan. Beginning July 1, 2025, “beginner watermen” (as defined in the statute) and seafood processors may be eligible.

What is a Generational Waterman?
A generational waterman is a licensed (TFL) commercial waterman who can demonstrate that 50% or more of the waterman’s annual income was derived from commercial seafood harvesting. The law further provides that two years of the most recent federal income tax returns must be submitted with an application.

Minimum/Maximum loan amount: $7,000 to $40,000.

An advantage of this loan program is that if all the payments are made as agreed by the borrower, the final four quarters of the loan term will be forgiven by MARBIDCO. If a borrower fails to make all the payments in a timely fashion, then the entire remaining unpaid balance would be due, and the borrower would have to repay the entire loan amount (with any debt forgiveness forfeited – and the borrower barred from receiving future MARBIDCO financing).

Eligible Expenses

  • Eligible tangible equipment that may be purchased includes boats, motors, and harvesting gear, for example.

  • The equipment purchased must have a useful lifespan of at least 7 years.

Basic Requirements and Loan Terms

  1. Must be a qualifying commercial waterman who is licensed by DNR (with a Tidal Fisheries License) and can demonstrate that 50% or more of the waterman’s annual income was derived from commercial seafood harvesting. (Such a qualifying waterman is a “generational waterman” for purposes of this program.)

  2. Loans will be made on a first-come, first-served basis. Funds will be disbursed on a reimbursement basis.

  3. An applicant must have a credit score of at least 620 to be considered.

  4. Loans may be applied for between $7,000 and $20,000 for equipment. The maximum loan amount for equipment only (not including a workboat) is $20,000. Loans are available up to $30,000 for the purchase of a workboat.

  5. Loans are also available up to $40,000 for the purchase of a workboat and equipment, with equipment limited to not more than $20,000. (For example, $30,000 could be used to purchase a workboat and $10,000 used to purchase equipment.) The lifetime aggregate limit of the loan is $40,000.

  6. MARBIDCO Interest Rate: 3.00%

  7. Loan Origination Fee: None

Application Submission Process

All applications including any required attachments should be submitted as soon as completed as loans are processed in the order they are received. Additional information about the Watermen's Microloan program is provided in the application. A project financing submission checklist is included at the end of the application form which should be reviewed carefully.

Send Completed Applications to MARBIDCO Watermen’s Microloan Program, Attn: Brittany Rawlings, 1410 Forest Drive, Suite 21, Annapolis, MD 21403, or to brawlings@marbidco.org.