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MARBIDCO Loan Programs

Agri-Business Equipment and Working Capital Loan Fund

Affordable Financing for Working Capital and Equipment Purchases

The major aim of the Agri-Business Equipment and Working Capital Loan Fund program is designed to help rural businesses innovate, diversify and exploit emerging market opportunities in response to the pandemic.

The program helps address the unique financing needs of Maryland's agri- businesses that are not otherwise able to obtain commercial financing for working capital and equipment purchases from traditional commercial lenders such as banks or farm credit associations. The matching participation of a local or regional revolving loan program is required.

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Application Submission Process

All applications must be originated by the applicant and the partnering lending organization. Cooperative extension agents, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received.

Minimum / Maximum Loan Amounts: $15,000 / $100,000

Loan Terms: Equipment: 3 to 8 years ( with up to 12 months interest-only possible). Term Operating Loan (with up to six months interest-only possible): 1 to 2 years.

MARBIDCO Interest Rate: With a partnering public sector lender involved, 4.75%, Without a partnering public sector lender involved, 6.75%.

Loan Origination Fee: 1% of the loan amount  

Equity Requirement: Typically, 10% of a project’s total cost.

Public Sector Lender Participation: A public sector commercial lender will often participate in the application process by both committing to a certain level of matching financing, and by completing a form which is included in the application packet.

Commercial Lender Involvement: If an applicant is coming without a public sector lender, then a commercial lender provides a credit denial letter or completes the commercial lender referral form included in this application packet.

Personal Loan Guarantee: Required. All loans made to a business entity must be personally guaranteed by the owners of the business.