marbidco’s maryland resource based industry … you met mrbiff? the maryland resource-based...
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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.
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