MARBIDCO Loan Programs

Maryland Oyster Shucking House Loan Fund

Helping to finance the cost of eligible seafood processing projects, including historic oyster shucking facilities

Photo by Edwin Remsberg (MDA)

Overview

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 $25,000 in financing provided at least one full-time job must be created or retained). 

The MARBIDCO interest rate is 3.25% (fixed). The loan origination fee is being waived for this program and some loan forgiveness is available to borrowers based on the amount of oyster shell returned to the Maryland Department of Natural Resources.

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.

Eligible Expenses

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. 

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.

Loan Terms and Conditions

Interest rate: 3.25% (fixed).  NOTE: The loan origination fee is being waived for this program.

Minimum/maximum loan amounts: $25,000 / $250,000 (Capped at $25,000 for each full-time job created or retained.)

Loans 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: Are normally required.  Owners of business entities (e.g., an LLC) must also provide guarantees.

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. For projects located in Anne Arundel, Calvert, Cecil, Charles, Kent, Prince George’s, Queen Anne’s or St. Mary’s counties, 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) with grant funds provided by two Maryland rural regional councils, Southern Maryland Agricultural Development Commission or Upper Shore Regional Council

Working Capital Requirements

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.

Application Submission Process

Applications are processed as they are received and should include all required attachments (please see the Checklist on Page 8 for more information).

For more information about the Maryland Oyster Shucking House Loan Fund, contact Stacy Kubofcik, MARBIDCO Financial Programs Associate, by email at skubofcik@marbidco.org or by telephone at (410) 267-6807. Electronic applications are encouraged. Mailing address is MARBIDCO, Maryland Oyster Shucking House Loan Fund, c/o Stacy Kubofcik, 1410 Forest Drive, Suite 21, Annapolis, MD 21403.