Maryland Oyster Shucking House Loan Fund
Oyster Shucking House Loan Fund
Overview
The Maryland Oyster Shucking House Loan Fund has been established by MARBIDCO to help finance the cost of eligible seafood processing projects, including historic oyster shucking facilities, and to facilitate an increase in the amount of oyster shells retained in the State and returned to the Chesapeake Bay. As a result of legislation enacted in 2022 (Senate Bill 830), MARBIDCO received $1 million to operate the new Oyster Shucking House Loan Fund program. This legislation enables MARBIDCO to offer loans of up to $250,000 to finance the eligible costs of qualifying oyster processing business projects (under certain terms and conditions).
Loan amounts can range from a minimum of $25,000, up to a maximum of $250,000 which is dependent upon the number of full-time jobs being created or retained. For each full-time job projected to be created or retained, MARBIDCO can provide $25,000 in financing. For every seasonal full-time job projected to be created or retained, MARBIDCO can provide $10,000 in financing.
Loan proceeds can be used to renovate or construct a new oyster processing facility or expand an existing one, as well as purchase oyster processing equipment. Eligible applicants must have been a licensed Maryland Seafood Dealer for at least five years OR be a TFL-holder for at least five years and agree to obtain a Seafood Dealer License if approved for financing. Applicants must also have paid all applicable taxes and fees for the last five years. Submission of a business plan, including financial projections, is required.
This program can offer standalone financing or can work in conjunction with another MARBIDCO loan program.
Loan Terms and Conditions
Minimum/Maximum Loan Amount: $25,000 / $250,000 (Capped at $25,000 for each full-time job created or retained and $10,000 for every seasonal full-time job created or retained.)
Equity Requirement and Match: At least 3% of a project’s total cost must be provided by the borrower as an equity contribution towards the completion of the project. With grant funds provided by two Maryland rural regional councils, MARBIDCO will match on a dollar-for-dollar basis the equity contribution up to 5% of the project cost (with a cap of $12,500) in the following counties: Anne Arundel, Calvert, Cecil, Charles, Kent, Prince George’s, Queen Anne’s, or St. Mary’s. See the boxes below for more information.
Working Capital Requirement: Applicants constructing a new facility must demonstrate that they have a minimum level of working capital available of at least 15% of the project cost (either in cash or through a bank line of credit). All other applicants must demonstrate that at least 10% working capital is available to run the operation.
MARBIDCO Interest Rate: 3.25% (fixed). NOTE: The loan origination fee is being waived for this program.
Loan Terms/ Collateral: The length of the term of a loan will correspond to the useful life of the assets being financed, following an initial interest-only period (of up to 6 months). Other conditions will apply including the pledging of appropriate collateral security.
Personal Guarantee(s): These are normally required. Owners of business entities (e.g., an LLC) must also provide guarantees.
Application Submission Process: Applications are processed as they are received and should include all required attachments.
Send Completed Applications to: skubofcik@marbidco.org or MARBIDCO Loan Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403
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.
Photos by Edwin Remsberg