Maryland Livestock Processing Loan Program (Livestock Processing Loan)

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 meat and poultry processing companies are not eligible. It can offer standalone financing or work in conjunction with commercial lenders. Loan proceeds derive from the USDA Meat and Poultry Intermediary Lending Program (MPILP) grant with matching funds from MARBIDCO; MARBIDCO must submit all projects to USDA for approval before disbursing funds.

Open to applicants starting up or expanding small- and medium-sized USDA-inspected slaughter facilities in Maryland; large meat and poultry processing companies are not eligible. Loan proceeds can be used to purchase real estate, construct a new or expand an existing livestock processing facility, and purchase processing equipment. Priority is given to construction of new facilities, especially in underserved parts of Maryland. A personal guarantee is required (waived when the borrower provides a 20% equity contribution, including MARBIDCO's equity grant).

Loan amounts range from $250,000 to $2,500,000 at a 4.00% fixed rate, with a 0.25% origination fee (maximum $5,000). The borrower must provide at least 7.5% of total project cost as equity. MARBIDCO provides a dollar-for-dollar equity match grant of up to 10% of project cost, capped at $250,000. Applicants constructing a new facility must demonstrate working capital of at least 10% of project cost, in cash or through a bank line of credit. The loan term corresponds to the useful life of financed assets, following an interest-only period of up to 12 months; appropriate collateral security is required.

The applicant must originate all applications. Applications are processed in the order received, subject to available funds. Send completed applications to MARBIDCO Loan Programs, c/o Allison Roe, 1410 Forest Drive, Suite 21, Annapolis, MD 21403.