The Wood Products Industry Equity Investment Grant Program (WPIEI) helps Maryland wood fiber harvesters, processors and manufacturers to purchase new equipment or helps Maryland wood fiber harvesters, processors, and manufacturers to purchase new equipment or construct facilities so that they can engage in increased production and utilization of locally sourced wood fiber, enhanced commercial revenue generation, and retention and creation of new job opportunities.

MARBIDCO recognizes the importance of the forests products industry from economic, environmental and consumer perspectives, and thus seeks to assist in growing a strong and diversified wood products industry in Maryland. MARBIDCO aims to assist Maryland’s forestry businesses with improving operations and efficiency, increasing productivity and employment opportunities, and supporting new markets development.

Maryland’s forests products industry experienced the same business challenges faced by the industry throughout the mid-Atlantic region caused by the 2008 recession, papermill closures, and volatile fuel prices and interest rates. The COVID-19 Pandemic exacerbated these economic distresses, especially with regards to labor. By helping to sustain and grow a healthy forestry industry, investment now will yield substantial longer-term benefits for Marylanders. Recognizing this, the Governor and Maryland General Assembly authorized $500,000 in funding for FY 2024 for MARBIDCO to offer the Maryland Wood Products Industry Equity Investment Program (WPIEI). 

In addition, the Maryland Department of Natural Resources (DNR) is providing an additional $100,000 in funding to target projects that focus on value-added wood products. A product that is value-added has incremental value realized by a wood processor as a result of:  1) a change in physical state of the wood fiber; 2) highly differentiated production or marketing of wood products; and 3) an economic benefit realized from the production of biomass energy.

An ancillary objective of this program is to complement the financial services offered by private commercial lenders by leveraging funds to facilitate larger scale projects which will enable industry growth.

Commercial wood processing enterprises may apply for equipment and facilities project incentive grant funding to process or manufacture the following primary and secondary forest products: lumber, pilings, logs, firewood, mulch, pellets, shavings, veneers, flour, sawdust, plywood, millwork, CLT, and furniture (using Maryland wood). Forest harvesters are also eligible to apply.

Minumum Grant: $15,000 and Maximum Grant: $50,000 or $100,000 for a value-added project.

Matching funds are required. This can be in the form of cash (equity), a bank loan, or a MARBIDCO loan (please see the MARBIDCO website for information on the MRBIFF and Forestry Loan Programs).

Match: MARBIDCO will match up to 25% of the cost of the project with a $50,000 cap for each project. (That is, the maximum amount of grant funding that any single applicant can receive from the WPIEI program is $50,000, except for a value-added project.)

Applicants should expect to purchase or order equipment by no later than April 15, 2024. Equipment purchased prior to October 1, 2023 is ineligible.

Funds will be disbursed on a reimbursement basis (proof of payment required) or MARBIDCO can directly pay vendors with submission of approved invoices.

Eligible Expenses: Grant funds and matching funds must be used for equipment projects and capital asset purchases that have a useful life of seven years or more.  Examples include, but are not limited to, the following:

• Wood processing equipment and facilities
• Sawmills
• Dry kilns
• Skidders and in-woods chippers
• Primary and secondary wood processing equipment
• Optimization systems for maximizing fiber yield recovery
• Shavings, pellet mills, and sawdust dryers
• Other capital equipment that is designed specifically for use in the forest products industry

Eligible applicants include commercial timber harvesters, and primary or secondary wood products processors. Applicants can include sole proprietorships, partnerships, cooperatives, corporations, and LLCs. Grant funds and matching funds must be used for equipment and capital asset purchases that have a useful life of seven years or more.

MARBIDCO is seeking applications for projects or purchases that will improve operations and/or efficiency, increase productivity and/or workforce expansion, or aid in the pursuit of new markets.  This should be evident in the project description and business plan.

The WPIEI Program offers up to a 25% matching grant, up to the maximum amount allowed, for the purchase of equipment or facilities improvement. An ancillary objective of this program is to complement the financial services offered by private commercial lenders by leveraging funds to facilitate larger scale projects which will enable industry growth.

For applicants with a focus on value-added processing, applications should demonstrate how the financial assistance will help support, stimulate and market innovative and creative ways to enhance production of value-added wood products.  Value-added projects could include the purchase of a dry kiln or the production of biochar, for example.  Sawmills and secondary manufacturers that will use grant funds to purchase equipment to improve optimization systems will also be considered.  An example of this could include a 3-D log scanning coupled with computer-aided design that would determine the best sawing solution. A biomass energy-related project could also be eligible.

Applications from prior year grant recipients of the Maryland Wood Products Industry Equity Investment Program may be evaluated at a lower priority to first-time program applicants.

Application Submission Requirements

• Submit a completed and signed application form and all required attachments.
• Written Business Plan (see page 9 of application for detail on what information must be included)
• Project Budget - list of equipment or facilities to be acquired.
• Tax Return for the preceding year (latest available, 2022)
• Business Operation Financials (including a balance sheet, and current year income statement)
• Evidence of matching funds (e.g., copy of bank statement or bank loan commitment letter)

The application submission deadline is December 15, 2023 at 4 p.m.

For more information, please call Brian Cadden at 410-267-6807, or by email: at bcadden@marbidco.org. Email Brian Cadden or mail to: MARBIDCO, Wood Products Industry Equity Incentive Grant c/o Brian Cadden, 1410 Forest Drive, Suite 21, Annapolis, MD 21403