Maryland Shellfish Aquaculture Loan Program
(Deadline for 2012 Round 2 applications; Thursday, May 24, 2012)

To apply, see the Applications page.

The Maryland Department of Natural Resources (DNR) has formed a partnership with the Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) to provide affordable financing to watermen and other parties who want to start or expand commercial shellfish aquaculture operations in Maryland. The University of Maryland Extension (UME) is also contributing to this effort by providing training and business planning assistance to current and prospective shellfish growers.

Shellfish aquaculture business start-up expenses can run from $5,000 to more than $100,000 depending on the scope of the enterprise. Obtaining a loan from traditional commercial lenders for aquaculture business projects can be challenging for small enterprises and individuals considering the two- to three-year growing period between oyster planting and growth to market size, as well as frequently the lack of available business equity and collateral security.

Maryland’s aquaculture loan program is a subsidized program with all principal payments returning to a revolving fund to support future rounds of future funding.  The loan program also offers a partial loan forgiveness element for borrowers meeting certain performance conditions. MARBIDCO is pricing the loans at a fixed annual interest rate not to exceed 5%.  A Shellfish Aquaculture Financing Committee including representatives from DNR, UME, a Maryland farm credit association, and MARBIDCO will evaluate the credit worthiness of the prospective borrower(s), as well as the viability of the proposed project production and business plan (including the financial projections) that are required to be submitted with the application for assistance.

In 2011, MARBIDCO approved 26 shellfish aquaculture loans totaling about $1.8 million.   In 2012, the availability of funding is expected to be somewhat more limited so MARBIDCO and DNR will give priority to applicants who will begin shellfish production operations in 2012. Persons holding State water column leases (or who have applied for water column leases) are eligible to apply, although some funding is limited to holders of a tidal fisheries license. In addition, all applicants must have production and business plans that demonstrate the financial feasibility of the planned aquaculture operation.  A shellfish aquaculture business planning template and other useful information concerning shellfish aquaculture can be found on the internet at: www.dnr.maryland.gov/fisheries/oysters/industry/funding.asp.

In addition, MARBIDCO and DNR plan to offer a new Shellfish Remote Setting Aquaculture Financing Program in 2012 to help commercial watermen to start or expand remote setting operations. Loans of between $5,000 to $30,000 are available under this program with very favorable terms. Priority will be given to persons who have recently held an oyster harvesting permit. See the separate application form for this particular aquaculture financing program.
Information about the starting an shellfish aquaculture business in Maryland, including the State lease and permitting requirements, can also be obtained from the DNR Fisheries Service office by calling 410-260-8325.

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