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Dorchester County Presentation - 7/18/13 Stephen McHenry, Executive Director Slide 2 Is a Rural Development Financial Intermediary Org. Serving All of Maryland With a focus on: - Farming - Forestry - Seafood - Aquaculture Slide 3 Resource-based industry important to all of Maryland More than just economics: Every Marylander needs to have adequate food (and shelter, water, energy, etc.) most of which is provided from resources from rural areas. Slide 4 Half the States land area is privately owned rural land (3 million acres +) Ag/RBI important to culture, heritage, tourism and quality of life. Resource-based industries underpin the economies of many rural counties. * Especially in Western Maryland and the Eastern Shore (one-third of economy). Slide 5 Access to affordable credit and capital Information/referral/ business planning Help for young/beginning/ diversifying farmers (and watermen) Loss of rural land Slide 6 MARBIDCO Partners Commercial Banks & Farm Credit System State Agencies (MDA, DNR, DBED, MCE, MEA, TEDCO) USDA (and other Federal Agencies) Rural regional development councils Local economic development offices Farm and commodity groups Rural industry associations MD Ag Land Preservation Foundation Foundations and local land trusts Slide 7 Food production and processing, including: - commodity crops - table crops - seafood & aquaculture Fiber prod./processing: - timber/wood products - lumber, pallets, floors, paper and pulp, etc. Renewable energy - farm solar & biomass Slide 8 Since 2007, MARBIDCO has made investments in 238 agricultural and rural businesses totaling about $19 million. Partnered with 17 banks and 3 local government revolving loan funds, with a leverage of $36 million in bank financing. Helped 78 young or beginning farmers. Helped to finance 88 farm value added processing projects. Slide 9 Funded 34 Rural Business Project Investments totaling $3.75 million since 2007 (About 20% of all MARBIDCO investment $$$.) Secured Lending (MRBIFF and Working Capital Loans) 16 projects ($2,750,000) Small Value Added and Local Government Cost Share Grants 6 projects ($25,000) Shellfish Aquaculture Loans 12 projects ($765,000) Slide 10 MARBIDCO Offers 8 Lending Programs today 5 of the loan programs are offered using MARBIDCO resources these loans require collateral security 3 other loan programs are for special purchases and involve a higher level of credit risk (unsecured lending) The workhorse program is the Maryland Resource- Based Industry Financing Fund Loan (MRBIFF) NOTE: All loans reviewed and approved by a loan review committee. Slide 11 Offers low-interest (3% APR initially) loans for the purchase of land and capital equipment. Maximum Loan Amount - $200,000 ($400,000 for land purchase & $600,000 for a major project). Financial commitment: A commercial lender and/or a public instrumentality must have an equal commitment in the project. MARBIDCO will accept a junior lien position in most situations. Slide 12 Complements the financial services offered by commercial lenders by helping to make rural business gap financing both available and affordable. Flexible loan terms to match and enhance commercial lender offerings. Slide 13 Rural Business Equipment & Working Capital Loan FD Maryland Vineyard Planting Loan Fund Forestry Equipment and Working Capital Loan Fund Rural Business Energy Efficiency Improvement Loan F Maryland Shellfish Aquaculture Financing Fund Maryland Remote Setting Aquaculture Financing Fund Agricultural Cooperatives Equity Investment Fund Slide 14 Grant program offerings in 2013: Local Government Ag/RBI Project Cost Share Program Maryland Value Added Producer Grants (Capital Assets Option & USDA Matching) NEW: Urban Ag Commercial Lending Incentive Grants (in municipalities) Slide 15 Product has incremental value realized by the producer as a result of: Change in physical state Differentiated production or marketing Product segregation Economic benefit realized from the production of farm or ranch-based renewable energy. Slide 16 Installment Purchase Agreements (IPAs), in partnership with MALPF. County Leveraged IPAs and Aggie Bond/Option IPAs. Next Generation Farmland Acquisition Program (Pending Transfer Tax $$$). Slide 17 www.marbidco.org Please visit us on the web