MARBIDCO Loan Programs
Maryland Watermen's Microloan Program
Helping Watermen to get financing for equipment purchases
The Maryland Watermen's Microloan Program is open and accepting applications.
The Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) is offering a new Maryland Watermen’s Microloan Program to assist “generational watermen” with the purchase of needed equipment via low interest, unsecured loans.
Photo: Maryland Sea Grant - University of Maryland
Application
PDF
Helpful Hint: Be sure to gather the required two years of recent tax returns, as they must be submitted with your application in order to be processed. Applications without tax returns are not able to be processed.
Overview
With the support of the Governor and Maryland General Assembly, MARBIDCO has established the Maryland Watermen’s Microloan Program to meet the equipment needs of watermen.
During the first three years of the Program, a loan can only be made under what the law defines as a “Generational Waterman”. Thereafter, once the initial loans are being repaid and the principal is revolving back into the program, the microloan program will be expanded to include both “Generational Watermen” and “Beginner Watermen” (as defined in State law). Seafood processing businesses will also be eligible too.
What is a Generational Waterman?
A Generational Waterman is a licensed (TFL) commercial waterman who can demonstrate that 50% or more of the waterman’s annual income was derived from commercial seafood harvesting. The law further provides that two years of the most recent federal income tax returns must be submitted with an application.
An advantage of this loan program is that if all payments are made as agreed to by the borrower, MARBIDCO will forgive a portion of these payments towards the end of the loan agreement.
The minimum loan amount is $7,000 and the maximum S15,000.
Loans will be made on a first-come, first-served basis.
Finally, an applicant may not receive more than $15,000 in any 24-month period of time.
Photo: Maryland Sea Grant - University of Maryland
Eligible Expenses
- Eligible tangible equipment that may be purchased includes boats, motors, and harvesting gear for example.
- The equipment purchased must have a useful lifespan of at least 7 years.
MARBIDCO Shellfish Aquaculture Loan Programs
MARBIDCO also offers two additional loan programs to support shellfish aquaculture:
Maryland Shellfish Aquaculture Financing Fund: In partnership, the Maryland Department of Natural Resources (DNR) and MARBIDCO 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.
Loan proceeds can be used to purchase shell, seed, spat or equipment (depending on the source of funds).Both bottom culture and water column (cages or floats) projects are eligible.
Minimum/maximum loan amounts: $5,000 to $100,000
Maryland Remote Setting Shellfish Aquaculture Financing Fund: Working in collaboration with DNR and using Maryland Port Administration (MPA) funds, this program provides affordable financing to commercial watermen who want to start or expand shellfish remote setting (nursery) aquaculture operations.
The nursery grower purchases larvae from a hatchery and places it in a tank containing cultch for the larvae to set on. Spat on shell setting systems consist of a tank, pump, piping and valves, and a blower to provide low pressure air to circulate larvae during setting. Seed (larvae), shell (substrate), and tank heaters (during cooler months) are also needed.
Minimum / Maximum Loan Amounts: $5,000 to $30,000
Application Submission Process
Applications (including any required attachments) should be submitted as soon as completed as loans will be processed in the order they are received. Additional information about the Watermen's Microloan program is provided in the application. A project financing submission checklist is included at the end of the application form which should be reviewed carefully.
MARBIDCO Interest Rate: 3.00%
Loan Origination Fee: None
Collateral Requirement: None. These loans will be made on an unsecured bases (no collateral required), but personal guarantees are required.
Basic Requirements & Loan Structure
- Must be a qualifying commercial waterman that is a licensed by DNR (with a Tidal Fisheries License) who can demonstrate that 50% or more of the waterman’s annual income was derived from commercial seafood harvesting. (Such a qualifying waterman is a “generational waterman” for purposes of this program.)
- Loans will be made on a first-come, first-served basis. Funds will be disbursed on a reimbursement basis.
- An applicant must have a credit score of at least 620 to be considered.
MARBIDCO anticipates using the following loan repayment structuring:
