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MARBIDCO Grant Programs

Maryland Urban Agriculture Commercial Lending Incentive Grant (MUACLIG)

Incentivizing investments in Urban Agriculture

The MUACLIG program is designed to meet the financing needs of urban farmers by providing an incentive for them to seek commercial lender financing for the development or expansion of their agricultural enterprises.

Obtaining financing is difficult for most farmers, but particularly for urban farmers. A very small amount of equity capital can make a significant difference in helping these business owners to obtain bank financing (commercial loans).

Shoops (urban greenhouses)

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Overview

The Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) was created with a mission to assist Maryland’s farm, forestry, and seafood businesses with achieving profitability and sustainability, promoting agricultural entrepreneurship, and nurturing emerging food and fiber markets.

MARBIDCO has partnered with Horizon Farm Credit to establish and manage a fund to offer grants of between $1,000 and $15,000 for equipment and working capital and up to $35,000 for real estate purchases. 

Maximum Grant Amount:$15,000 for equipment and working capital and $35,000 for real property, but no more than 25% of the project’s total cost.  In addition, the grant amount can be no more than 33% of the amount of the approved commercial loan for this project.

Minimum Grant Amount: $1,000. (This means that there must be an approved commercial loan of at least $3,000.)

Success Story:
Maryland Urban Agriculture Commercial Lending Incentive Grant

In 2015, MARBIDCO awarded its first Maryland Urban Agriculture Commercial Lending Incentive Grant to Big City Farms, located in Baltimore City.

Dave Bisson, Big City Farms’ CEO, made the application to MARBIDCO’s program along with PNC Bank. The MARBIDCO grant of $7,500 helped Big City Farms leverage bank financing to invest in parts and labor for the construction of hoop houses which are used to grow produce year round.


MARBIDCO MUACLIG Investments: Since the Maryland Urban Agriculture Commercial Lending Incentive Grant was established in 2014, MARBIDCO has funded 12 projects in Maryland for a total investment of more than $28,000, as of 2022.

Application Submission Process

Applicants must verify in their application that commercial lender or Farm Service Agency loan proceeds are available to help complete the proposed farming project.

Applicants that are awarded grants may not materially deviate from their approved business plans without approval from MARBIDCO and the participating commercial lender.

Eligibility:

Applicants must be Beginning Urban Farmers, which are defined as being farmers (either individuals or incorporated businesses) with the principal operator(s) having:

  • ten or fewer years of commercial farming experience – either in a for-profit or not-for-profit setting or having limited personal or business financial resources (net worth less than $300,000);
  • a commercial food/fiber growing operation located in an urban area as defined by the United States Census Bureau and ​any incorporated municipality recognized by the State of Maryland.

Eligible business activities include the purchase of:

  • real estate
  • agricultural inputs and supplies such as seed, fertilizer, compost, and baskets;
  • farm tools and equipment;
  • greenhouses, high tunnels, refrigeration, and irrigation systems; and
  • hired labor (at no more than 20% of the total eligible project cost).