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MARBIDCO Loan Programs Forestry Equipment and Working Capital Loan FundEnhancing the Viability of Maryland's Forestry IndustryA major aim of this program is to help forest products-related businesses innovate and take advantage of emerging market opportunities, or to make investments to help make business operations more sustainable.
Download Application OverviewThe Forestry Equipment and Working Capital Loan Fund addresses the unique financing needs of Maryland’s forest products-related businesses with respect to working capital and equipment purchases. Application Submission ProcessAll applications must be originated by the applicant. Cooperative extension agents, Maryland Forest Service, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received. Maximum Loan Amounts: $150,000 Loan Terms: Equipment: 3 to 6 years. Operating Loan: 1 to 2 years. Forestry Equipment and Working Capital Loan Fund Success StoryHelping to sustain the forestry industry in Maryland is a key mission objective of MARBIDCO. Red Rock, LLC, a third generation, family-owned and operated forestry company located in Western Maryland has utilized MARBIDCO programs on several occasions. In 2014, they secured a FEWCL loan to help them complete the purchase of timber from the City of Frederick Watershed in Frederick County and the Green Ridge Forest in Allegany County. MARBIDCO Interest Rate: Will be established on a case-by-case basis based on the level of anticipated credit risk. The minimum interest rate for any loan made under this program will be 6.25% (Fixed rate). Loan Origination Fee:1% of the loan amount Equity Requirement: Typically 5-10% of a project’s total cost. Lender Participation: Required. A commercial lender must participate in the application process by providing a letter of referral. An attachment to be completed by a financial institution describing current loan oblications can be found near the end of the official application form.
Most banks don’t understand the timber industry, so it’s good to have MARBIDCO on our side!” – Sharon Frantz, Financial Officer, Red Rock, LLC
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