Notice to Lenders and Prospective Applicants
The Participation Loan option is currently offered through Horizon Farm Credit and Colonial Farm Credit. If other lenders are interested in adopting this lending approach, please get in touch with MARBIDCO. MARBIDCO currently accepts applications under both the direct lending program and the participation loan program. Call 410-267-6807 or email bcadden@marbidco.org for more information.
Maryland Resource-Based Industry Financing Fund (MRBIFF)
The MRBIFF Loan Program is available as a Direct Lending program or a Participation Loan program. Both MRBIFF programs offer low-interest loans to agricultural/RBI-industry enterprises to purchase land and capital equipment for production and processing activities.
A Commercial Lender is Required.
MRBIFF Documents for Download
Apply for MRBIFF Loan
Application 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.
Email completed applications to Brian Cadden at bcadden@marbidco.org,
Or mail them to:
Loan Programs, Attn: Brian Cadden
1410 Forest Drive, Suite 21
Annapolis, MD 21403
Direct Loan
MARBIDCO may provide 20% to 40% of the total commercial financing required for an eligible project, in partnership with a commercial bank or public-sector lender. A 50% participation may be considered in extraordinary circumstances.
Participation Loan
MARBIDCO’s participation generally ranges from 30% to 49% of the loan, while the lead lender provides 51% to 70%. Collateral, security interests, and loss-sharing responsibilities are established through the applicable intercreditor agreement.
MARBIDCO Interest Rates
Direct Loan
4.75% for the first 3 years, 5.25% for the next 3 years, and 5.75% for the remaining term of the loan.
MARBIDCO will charge a 1% loan origination fee on the direct loan amount.
Participation Loan
4.25%, and the primary Lender may require a loan servicing fee of up to 0.75% (maximum 5.00% for the full term of the loan)
Loan Terms
Direct Loan
The MRBIFF direct loan program has a term of 5 to 7 years. Land is 10 to 30 years (typically with a 10-year balloon).
Participation Loan
The MRBIFF participation loan program aligns with the partnering Lender’s terms, including a mandatory 15-year MARBIDCO balloon payment.
MRBIFF Equity
Equity Requirement - Direct Loan
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%.
Equity Incentive Program
The partnership program below works in tandem with MARBIDCO and is designed to incentivize farmers in Cecil, Kent, and Queen Anne's counties on the Eastern Shore to request loans.
Each MARBIDCO loan program has its own eligibility criteria and an application/approval process.
The Upper Shore Regional Council Farm Loan Equity Incentive Matching Fund will contribute up to $15,000 toward an MRBIFF Program loan, and in all other loan programs, the equity incentive match will be capped at $5,000 (per applicant). A 5% borrower equity match is generally required to obtain the incentive funds.