Program Oveview
In collaboration with the Maryland Energy Administration and using Regional Greenhouse Gas Initiative (RGGI) funds, MARBIDCO offers affordable financing for projects to improve energy efficiency in food and fiber processing businesses.
The goal of this program is to help rural businesses to reduce energy consumption and at the same time, increase profitability.
This program offers a low-interest, microloan to enable farmers and agricultural-based industry business owners to implement recommendations of a third-party energy auditor. This program facilitates the purchase of equipment or technology related to lowering business-related energy consumption by providing below-market rate financing assistance.
Basic Eligibility Requirements
The borrower should have a credit score of at least 620 and no bankruptcies filed within the last seven years. Loans made under this program are unsecured. Only the personal guarantee of the borrowers and/or businesses are required. Loans will be fully amortized with terms not exceeding the anticipated savings payback period with at least a 1.0 – 1.0 ratio on the annual energy savings payback.
A copy of an energy audit or an ag energy management plan report (or an energy savings confirmation letter) provided by a qualified third-party energy auditor is required to be submitted with the application, as well as, a simple commercial lender referral.
$5,000
Minimum loan
$30,000
Maximum loan
4.50%
Fixed rate
$75
Origination fee
Loan Terms and Conditions
Loan Advances
May not exceed actual improvement costs minus grant incentive funding received.
Grant Incentive
10% of the loan amount, not to exceed $1,000.
Debt Service Coverage
At least 1.0-to-1.0 on annual energy savings payback. Terms may not exceed anticipated savings payback.
Application Submission Process
Originate application
All applications must be originated by the applicant.
Submit application
Send to:
MARBIDCO Loan Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403, or info@marbidco.org.
Processing
Applications are processed in the order received.
Equity Incentive Program
The Upper Shore Regional Council (USRC) and MARBIDCO have partnered to offer an incentive program targeted to farmers in these three Upper Shore counties: Cecil, Kent, and Queen Anne's. This fund is designed to incentivize loan requests from Upper Shore farmers and to help them meet lenders' down-payment (equity) requirements, thereby improving the credit quality of their applications. The program connects farmers with vital resources by making a 5% equity contribution towards financing a project funded by a MARBIDCO loan.