MARBIDCO Loan Programs
Rural Business Equipment and Working Capital Loan Fund
Affordable Financing for Working Capital and Equipment Purchases
Note: The core loan programs are currently offering reduced interest rates in response to COVID-19. The major aim of the Rural Business Equipment and Working Capital Loan Fund program is to help rural businesses innovate, diversify and exploit emerging market opportunities.
The program helps address the unique financing needs of Maryland's rural businesses that are not otherwise able to obtain commercial financing for working capital and equipment purchases from traditional commercial lenders such as banks or farm credit associations. The matching participation of a local or regional revolving loan program is required.
Application Submission Process
All applications must be originated by the applicant and the partnering lending organization. Cooperative extension agents, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received.
Minimum / Maximum Loan Amounts: $15,000 / $100,000
Loan Terms: Equipment: 3 to 8 years. Term Operating Loan (up to six months interest only): 1 to 2 years.
MARBIDCO Interest Rate: With partnering public sector lender involved, 4.50% 3.50%. Without a partnering public sector lender, 6.25% 5.25%.
Loan Origination Fee: 1% of the loan amount (This fee, plus any applicable closing charges, will be collected at loan settlement).
Equity Requirement: Typically 10% of a project’s total cost.
Lender Participation: A public sector commercial lender will often participate in the application process by both committing to a certain level of matching financing, and by completing a form which is included in the application packet. In addition, a commercial lender must provide a denial letter or complete the commercial lender referral form included in the application packet.
Commercial Lender Involvement: If an applicant is coming without a public sector lender than a commercial lender provides a credit denial letter or completes the commercial lender referral form included in this application packet.
Personal Loan Guarantee: Required. All loans made to a business entity must be personally guaranteed by the owners of the business.