MARBIDCO Loan Programs
Maryland Resource-Based Industry Financing Fund (MRBIFF)
Helping Farmers Start & Expand Business Operations
NOTICE TO LENDERS AND PROSPECTIVE APPLICANTS:
The MRBIFF Loan Program is transitioning from a direct lending program into a loan participation program. Until that transition is complete, MARBIDCO will be accepting applications under the direct lending program. We anticipate the transition to fully take place by the end of October.
The MRBIFF program offers low-interest loans to Ag/RBI-industry enterprises for the purchase of land and capital equipment for production and processing activities. Through the MRBIFF program, MARBIDCO will provide between 20% to 40% of the debt financing for a project, with a commercial lender and/ or public entity providing an equal or greater financial commitment.
Download Application
Maximum Loan Amounts:
- $300,000 for equipment
- $600,000 for real estate
- $1,000,000 for a large processing projects
Loan Terms
- Equipment- 5 to 7 years
- Land: 10-30 years (typically with a 10-year balloon for loans amortized longer than 15 years).
All MRBIFF loan applications are developed and submitted to MARBIDCO by commercial bank or Farm Credit Association loan officers, and/or Farm Service Agency representatives. However, MARBIDCO will make and service its own loans. With respect to collateral security, MARBIDCO will generally take a subordinate lien position to that of the bank.
MARBIDCO Interest Rate: 4.75% for the first 3 years, 5.25% for the next three years and 5.75% for the remaining term of the loan.
Loan Origination Fee: MARBIDCO charges a loan origination fee of 1% of the MARBIDCO loan amount.
Equity Requirement: Typically, 5% but can be less for young/beginning farmers. Poultry projects may not exceed a maximum combined loan-to-value of 92%.
Commercial Lender Participation Is Required
MARBIDCO can provide supplemental loan proceeds within a range of 20% to 40% of the total commercial financing needed, working with a commercial bank and/or public sector lender. (Illustration: If a bank is willing to loan $60,000 for a $100,000 business activity contingent on MARBIDCO’s participation, MARBIDCO may loan up to an additional $40,000 for such a project.) A 50/50 participation is possible under extraordinary circumstances.
Application Submission Process
All MRBIFF loan applications will be developed and submitted to MARBIDCO by commercial bank or Farm Credit Association loan officers (possibly in consultation with other rural business advisors), and/or Farm Service Agency representatives. However, MARBIDCO will make and service its own loans. With respect to the collateral security, MARBIDCO will generally take a subordinate lien position to that of the bank.
Send Completed Applications to: MARBIDCO Loan Programs, c/o Brian Caddem1410 Forest Drive, Suite 21, Annapolis, MD 21403 or bcadden@marbidco.org and 410-267-6809.
Download MARBIDCO’s Loan Officer Guidance Sheet 
Photo: Peter Roome
