MARBIDCO Loan Programs
Maryland Shellfish Aquaculture Financing Fund
Helping Entrepreneurs Start & Expand Aquaculture Operations
The Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) is partnering with the Maryland Department of Natural Resources (DNR) to help make affordable, subsidized loan financing available to commercial watermen and other entrepreneurs wishing to start or expand shellfish aquaculture operations. The University of Maryland is also contributing to this important effort by making training and business planning assistance available to current and prospective commercial shellfish growers.
Overview
Persons holding State submerged land or water column aquaculture leases, or those people who have applied for such leases are are eligible to apply. In addition, all applicants must have production and business plans that demonstrate the financial feasibility of the planned aquaculture operation.
Minimum/maximum loan amounts: $5,000 to $100,000
Eligible Expenses
Loan funds may be used to purchase substrate (e.g., shell), seed (or larvae) or capital equipment (equipment with a 15-year life expectancy with routine maintenance).
On-bottom and water column (i.e., cages or floats) aquaculture production projects are all potentially eligible to be funded. However, the purchase of motor vehicles, including boats and trucks, are not eligible expenses under this program. All borrowers need to indicate from where they plan to purchase shell or substrate.
Remote Setting Shellfish Aquaculture Loan Program
Maryland Remote Setting Shellfish Aquaculture Financing Fund: Working in collaboration with DNR and using Maryland Port Administration (MPA) funds, this program provides affordable financing to commercial watermen who want to start or expand shellfish remote setting (nursery) aquaculture operations.
The nursery grower purchases larvae from a hatchery and places it in a tank containing cultch for the larvae to set on. Spat on shell setting systems consist of a tank, pump, piping and valves, and a blower to provide low pressure air to circulate larvae during setting. Seed (larvae), shell (substrate), and tank heaters (during cooler months) are also needed.
Loan Terms:
- Substrate and Seed – maximum of 5 years (1-3 years interest-only and 2 years P&I)
- Capital Equipment – maximum of 7 years (1-3 years interest-only and 4 years P&I)
- Blended Purchases – maximum of 6 to 7 years (1-3 years interest-only and 4 years P&I)
Application Submission Process
All applications (including any required attachments) should be submitted as soon as completed as loans will be processed in the order they are received. Additional information about the shellfish aquaculture financing program is provided in the application. A project financing submission checklist is included at the end of the application form which should be reviewed carefully.
MARBIDCO Interest Rate: 5.25% (This is the maximum rate; the rate can be as low as 3.00% during the first one to three years of the term of the loan depending on the length of the interest-only period that is needed.)
Loan Origination Fee: None
Equity Requirement: At least 10% of loan amount (as a cash contribution used to implement the aquaculture project -- however, ownership of a commercial workboat could help to satisfy this requirement).
Basic Elgibility Requirements
There are two basic requirements to be eligible to receive funding under this program:
1) An applicant must either hold a shellfish aquaculture lease from DNR currently, or have applied for such a lease. Although for applicants tht havve applied for a shellfish aquaculture lease from DNR, loans may be approved but will not close until the lease is approved.
2) An applicant must demonstrate that the proposed shellfish aquaculture production will begin within 12 months of lease approval.
Priority will be given to applicants who have received less than $100,000 in Shellfish Aquaculture funding previously from MARBIDCO.
We are very thankful that MARBIDCO was able to step in and fill a critical supportive role in the industry. But we are most thankful for the people who work at MARBIDCO ‐ they have been nothing short of helpful, professional, and on‐the‐ball from the get‐go. It’s been a pleasure dealing with them.”
– Patrick Hudson, True Chesapeake Oyster Company
Also, read about a Maryland Shellfish Aquaculture Financing Fund Program success story here.
