MARBIDCO’s

Maryland

Resource-Based

Industry Financing

Fund

A Resource For Commercial Lenders To Reduce Risk on Agricultural Loan Requests

MARBIDCO: Helping Sustain

Agricultural and Rural

Businesses for Future

Generations

Did You Know?

Did you know that since its inception in

2007…

MARBIDCO has funded over 460

farm and rural business projects in

every county in Maryland (and

Baltimore City)?

MARBIDCO has assisted more than

250 young and beginning farmers

(many with helping to purchase their

first farms)?

MARBIDCO has supported the

implementation of nearly 160 on-farm

value added processing projects?

MARBIDCO has helped State and

county governments to preserve rural

working land through bond finance

programs?

MARBIDCO works closely with commercial

lenders, cooperative extension agents, local

economic development officers, State agency

marketing and land preservation staff, and oth-

er rural business service providers to make our

financial and business planning services, in-

cluding project gap financing, available to

those that need them.

Commercial Lender Participation:

In “MRBIFF,” project financings are required.

MARBIDCO can provide supplemental loan

proceeds of up to 100% of amount of the com-

mercial lender financing. (Illustration: If a

bank is willing to loan $60,000 for a business

activity contingent on MARBIDCO’s partici-

pation, MARBIDCO may loan up to an addi-

tional $40,000 for such a project and will be in

a subordinate lien position.)

Loan Terms and Conditions

Maximum Loan Amount:

$250,000 for acquisition of equipment and

fixed assets. $450,000 for real estate purchases

and renewable energy projects. $650,000 for

large-scale food/fiber processing projects (of

$2.5 million and up).

MARBIDCO “MRBIFF” Interest Rates:

3.25% APR for the first 3 years, 4.5% APR for

the next three years, and 5.75% for the remain-

ing term of the loan.

Loan Terms:

Equipment: 5 to 7 years Land: 10 to 30 years

(with balloon typically after 10 years.)

To learn more about MARBIDCO programs,

visit www.marbidco.org.

Have You Met MRBIFF?

The Maryland Resource-Based Industry

Financing Fund, known as “MRBIFF,” offers low

-interest loans to young and beginning farmers

and other agricultural and rural businesses for the

purchase of land and capital equipment for

production and processing activities.

The maximum MARBIDCO loan amount is:

$250,000 for acquisition of equipment and

fixed assets,

$450,000 for real estate purchases, food/meat

processing and bioenergy projects, and

$650,000 for large-scale food/fiber

processing projects (of $2.5 million and up).

MARBIDCO provides up to 50% of financing

needed for a project, and a commercial lender

and/or a public instrumentality must also have an

equal financial commitment in the transaction.

(Note: MARBIDCO typically takes a subordinate

position on the collateral security and under

appropriate circumstances will approve real estate

loans up to 100% combined loan-to-value.)

Need More Information?

Contact Us:

MARBIDCO Financial Programs

1410 Forest Drive

Suite 21

Annapolis, MD 21043

(410) 267-6807

Or visit us on the web:

www.marbidco.org

How MRBIFF Works

MARBIDCO MRBIFF loans are direct loans

made to eligible borrowers working in tandem

with a separate loan financing being offered by a

commercial bank or Farm Credit Association.

MARBIDCO offers below-market-rate financing

(on a step-rate basis) to help reduce borrower

costs and improve debt service coverage.

Commercial lenders may impose their customary

loan terms and conditions (on their loans).

MARBIDCO’s goal is to “graduate” its

borrowers to conventional commercial financing

over several years.

All MARBIDCO MRBIFF loans must be fully

collateralized. Naturally, we prefer real estate as

security for our loans, but equipment and certain

financial securities may also work as acceptable

collateral under the right conditions.

MARBIDCO does not accept crops, livestock or

inventory as collateral security.

MARBIDCO is generally flexible in structuring

the terms and conditions of its loans (e.g., loan

repayments can be made on a monthly, quarterly,

or annual basis, and certain loans can be offered

on an interest-only basis for up to one year).

Who We Are

The Maryland Resource-Based Industry Devel-

opment Corporation (MARBIDCO) is an eco-

nomic development organization with a unique

mission: provide much-needed specialized

financing and business development assistance to

support the continued viability of Maryland’s

agricultural and rural industries, and in the pro-

cess help preserve more than 3 million acres of

rural working land and insure a safe and plentiful

supply of locally grown food and fiber.

MARBIDCO has an experienced team of credit

underwriters and ag/rural development profes-

sionals. Our clients are rural business entrepre-

neurs, food/fiber producers and harvesters, and

farm/forest landowners. We work closely with

commercial lenders, cooperative extension

agents, local economic development officers,

State agency marketing and land preservation

staff, and other rural business service providers to

make our financial and business planning

services available to those that need them.