MARBIDCO Loan Programs
Maryland Livestock Processing Loan Fund
Helping to Start & Expand Livestock Processing Operations
The Maryland Livestock Processing Loan Fund has been established by MARBIDCO, as a complement to USDA’s Meat and Poultry Intermediary Lending Program opportunity, to assist with the expansion of livestock processing capacity in Maryland. This program offers loans to eligible applicants to help start-up or expand small- and medium-sized USDA-inspected facilities in Maryland to increase the processing of meat, poultry and the invasive blue catfish. (Large meat and poultry processing companies are not eligible to participate in this program.)
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Program Description
Loan amounts can range from a minimum of $250,000 up to a maximum of $2,500,000. Loan proceeds can be used to purchase real estate, construct a new or expand an existing processing facility and purchase livestock processing equipment. Priority may be given to the construction of new facilities, especially in underserved parts of Maryland.
MARBIDCO will also match the equity contribution of an approved applicant on a dollar-for-dollar basis up to 10% of the project costs, with the maximum equity grant award amount capped at $250,000,
This program can offer standalone financing or can work in conjunction with other commercial lenders. The loan proceeds for this program will be derived from the USDA Meat and Poultry Intermediary Lending Program Grant, with matching funds provided by MARBIDCO.
MARBIDCO must submit all projects to USDA for approval before MARBIDCO can disburse funds. The equity grant match funding is coming from special funds appropriated to MARBIDCO to help enhance livestock processing capacity in Maryland.
Maximum Loan Amounts:
- $250,000 / $2,500,000
Equity Requirement and Match:
At least 7.5% of a project’s total cost must be provided by the borrower as an equity contribution. MARBIDCO will match on a dollar-for-dollar basis the equity contribution up to 10% of the project cost (with a cap of $250,000).
Working Capital Requirement:
Applicants constructing a new facility must demonstrate that they have a minimum level of working capital available of at least 10% of the project cost (either in cash or through a bank line of credit).
Application Submission Process
All applications must be originated by the applicants. After Round 1 deadline, applications will be processed in the order received and subject to funds availability.
MARBIDCO Interest Rate: 4.00% (fixed)
Loan Origination Fee: 0.25% of the loan amount (up to a maximum of $5,000).
Send completed applications to:
MARBIDCO Loan Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403