Person wearing blue gloves butchering blue catfish on a red cutting board with two other fish in the background.

Maryland Livestock Processing Loan Program

A young black cow standing in a grassy field with a black wooden fence and rolling hills in the background.

Overview

This program offers loans to eligible applicants to help start up or expand small- and medium-sized USDA-inspected slaughter facilities in Maryland, increasing the processing of meat, poultry, and blue catfish. Large-sized meat and poultry processing companies are not eligible to participate in this program. This program can offer standalone financing or can work in conjunction with commercial lenders.

Download the APPLICATION
Download the APPLICATION

The loan proceeds for this program are derived from the USDA Meat and Poultry Intermediary Lending Program Grant, with matching funds provided by MARBIDCO. MARBIDCO must submit all projects to the USDA for approval before MARBIDCO can disburse funds.

Loan amounts range from $250,000 to $2,500,000. Loan proceeds can be used to purchase real estate, construct a new or expand an existing livestock processing facility, and purchase livestock processing equipment.  Priority will be given to the construction of new facilities, especially in underserved parts of Maryland.

MARBIDCO will also match an approved applicant's equity contribution on a dollar-for-dollar basis up to 10% of the project costs, with the maximum equity grant capped at $250,000. 

Loan Terms & Conditions

  • Equity Requirement and Match: The borrower must provide at least 7.5% of a project’s total cost as an equity contribution. MARBIDCO will match on a dollar-for-dollar basis the equity contribution up to 10% of the project cost (with a cap of $250,000).

  • Working Capital Requirement: Applicants constructing a new facility must demonstrate that they have a minimum working capital available of at least 10% of the project cost (either in cash or through a bank line of credit).

  • MARBIDCO Interest Rate:  4.00% (fixed).  

  • Loan Origination Fee:  0.25% of the loan amount (up to a maximum of $5,000).

  • Loan Terms/ Collateral:  The term of a loan will correspond to the useful life of the assets being financed, following an initial interest-only period (of up to 12 months). Other conditions will apply, including the pledging of appropriate collateral security.

  • Personal Guarantee(s):  Required. Owners of business entities (e.g., an LLC) must also provide guarantees. The Personal Guarantee requirement will be waived in exchange for a 20% equity contribution, including MARBIDCO’s equity grant.

Application Submission Process

The applicants must originate all applications. Applications will be processed in the order received, subject to the availability of funds.

Send Completed Applications to MARBIDCO Loan Programs, c/o Allison Roe, 1410 Forest Drive, Suite 21, Annapolis, MD 21403

(The Maryland Livestock Processing Loan Fund Program has been established by MARBIDCO, as a complement to USDA’s Meat and Poultry Intermediary Lending Program (MPILP) opportunity, to assist with the expansion of livestock processing capacity in Maryland.) 

Photo: Roseda Farm