Seafood/Aquaculture Loans

Maryland Watermen's Microloan Program

MARBIDCO’s Maryland Watermen’s Microloan Program helps commercial watermen buy necessary equipment or a commercial fishing boat, and Seafood Processing businesses to purchase processing equipment through low-interest, unsecured loans.

Eligibility

The following are eligible to apply for this Microloan:

Generational Waterman

A “Generational Waterman” is a licensed commercial waterman who:

Is a resident of the State

Holds a TFL issued by the Department of Natural Resources, OR has a commercial license to catch finfish, crabs, clams, and oysters issued by the Potomac River Fisheries Commission

Can demonstrate that 50% or more of the waterman’s annual income was derived from commercial seafood harvesting through the submission of the two most recent federal income tax returns.

Beginner Waterman

A “Beginner Waterman” is a licensed commercial waterman who:

Is a resident of the State and is at least 18 years of age

Can demonstrate between 2-10 years, of commercial seafood harvesting experience through a written work narrative, a reference letter, and the two most recent tax returns, if available.

Can demonstrate that 50% or more of the waterman’s annual income was derived from commercial seafood harvesting through the submission of the two most recent federal income tax returns.

Seafood Processing Business

A “Seafood Processing Business” is a seafood processor that meets each of the following three eligibility requirements:

Holds either a TFL issued by the Department of Natural Resources or holds a commercial license to catch finfish, crabs, clams, and oysters issued by the Potomac River Fisheries Commission

Has held a Seafood Dealer license issued by the Department of Natural Resources for at least the last two years

Can demonstrate commercial seafood processing income through the submission of the two most recently available federal income tax returns

1

Applicants must have a minimum credit score of 620 to be considered for the program

2

An applicant may not have more than one active Microloan at one time

Eligible expenses

Commercial watermen may purchase tangible equipment, including boats, motors, and harvesting gear. Seafood processors may purchase only seafood processing equipment. The equipment purchased must have a useful lifespan of at least 7 years.

$7,000

Minimum equipment loan

$20,000

Maximum equipment loan

$40,000

Lifetime aggregate limit

3.00%

Fixed rate

Loan Terms and Conditions

Repayment

Repayment

  • 4 years (16 quarters) of amortizing (principal and interest) payments for loans $20,000 or less

  • 4 or 5 years (16 or 20 quarters) of amortizing (principal and interest) payments for loans $20,001 to $35,000

  • 5 or 6 years (20 or 24 quarters) of amortizing (principal and interest) payments for loans $35,001 to $40,000)

  • Payments shall be made quarterly. No collateral security is required to be pledged.

Loan Forgiveness

If all payments are made as agreed by the borrower, MARBIDCO will forgive the following if the borrower makes all payments in a timely fashion.  If a borrower fails to make all payments in a timely fashion, the entire remaining unpaid balance would be due, the borrower would have to repay the entire loan amount (with any debt forgiveness forfeited), and the borrower would be barred from receiving future MARBIDCO financing.

  • 4-year loans: the last 4 quarterly payments may be forgiven.

  • 5-year loans: the last 5 quarterly payments may be forgiven.

  • 6-year loans: the last 6 quarterly payments may be forgiven.

Application Process

Application Submission Process

1

Originate application

All applications must be originated by the applicant.

2

Submit application

Send electronically to:

brawlings@marbidco.org or mail to MARBIDCO c/o Brittany Rawlings, 1410 Forest Drive, Suite 21, Annapolis, MD 21403.

3

Processing

All requested information must be provided. Applications are processed in the order received.