Man standing with logsGrapes in Maryland vineyardMaryland Blue CrabsGirl with apples
 

MARBIDCO Loan Programs

Maryland Vineyard/Hopyard/Orchard Planting Loan Fund

Now includes financing for tree fruit orchards and hopyards

Affordable financing to meet the unique financing needs of Maryland's landowners wanting to establish or expand vineyards, orchards and hopyards. Interest-only options are available for a period of two to three years.

Maryland vineyard

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A major aim of the Maryland Vineyard/Hopyard/Orchard Planting Loan Fund program is to increase the acreage of viable commercial vineyards, orchards, and hopyards in Maryland.

MARBIDCO provides low-cost financing services in conjunction with a private commercial lender to make financing both available and affordable. This program is supported by the Maryland Wineries Association and the Maryland Grape Growers Association.

Minimum / Maximum Loan Amounts: $10,000 to $100,000 

Eligible Expenses: The requested financial assistance from MARBIDCO must relate to the installation of new vineyards, tree fruit orchards or hopyards including, but not limited to:

  • Prepping of land for plant installation
  • Purchase of vines or trees
  • Equipment and supplies

The purchase of tractors, pick-up trucks, and wine-making equipment are not eligible for financing under this particular program, but are eligible for financing under other MARBIDCO programs including the MRBIFF and Rural Business Equipment and Working Capital Loan Fund.

MARBIDCO Maryland Vineyard Planting Loan Fund Investments

MARBIDCO has financed 83 vineyard and winery projects and 31 on-farm brewing and hops projects in 18 of Maryland’s counties for a total investment of more than $3.6 million as of 2022.

Application Submission Process

All 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.

Each loan application will be reviewed for financial viability by a panel of agricultural lenders at MARBIDCO, and operational, viticultural and/or enological viability by members of the wine/grape industry’s viticulture committee (or other appropriate university experts). MARBIDCO will make and service all loans, and all loans must be fully collateralized. Borrowers have some flexibility in choosing the loan repayment terms that best fits their needs.

Applications are reviewed as they are received and typically take 3-4 weeks to process. Applications that are submitted which are not complete will delay the review process.

Minimum / Maximum Loan Amounts: $10,000 to $100,000 

MARBIDCO Interest Rate:

  • Option 1 -- Adjustable Interest and Principal Payments: 5.00% for the first three years, then adjusting to 6.25% for the balance of the loan term.
  • Option 2 – Interest-Only Payments for First Three Years; P&I Thereafter: 6.25% during the entire term of the loan, but borrower may elect to make interest-only payments during the first 3 years.

Loan Origination Fee: 1% of loan amount  

Equity Requirement: Typically 10% of a project’s total cost, but grant funds can also qualify. 

Commercial Lender Participation (Required): A commercial lender must participate in the application process by providing a letter of referral.

Also, read about a Vineyard/Hopyard/Orchard Planting Loan fund Program success story here.