Maryland Resource-Based Industry Financing Fund (MRBIFF)

The MRBIFF Loan Program offers low-interest loans to agricultural and resource-based industry (RBI) enterprises to purchase land and capital equipment for production and processing activities. It is available as a Direct Lending program or a Participation Loan program. A commercial lender is required.

Available to agricultural and resource-based industry enterprises in Maryland. A commercial bank or Farm Credit Association loan officer (possibly in consultation with other rural business advisors) and/or a Farm Service Agency representative must develop and submit the application. The Participation Loan option is currently offered through Horizon Farm Credit and Colonial Farm Credit.

Direct Loan: MARBIDCO may provide 20% to 40% of the total commercial financing required for an eligible project, in partnership with a commercial bank or public-sector lender (a 50% participation may be considered in extraordinary circumstances). Interest: 4.75% for the first 3 years, 5.25% for the next 3 years, and 5.75% for the remaining term. A 1% loan origination fee applies. Term: 5 to 7 years; land is 10 to 30 years (typically with a 10-year balloon). Equity requirement is typically 10% of project cost (can be less for young/beginning farmers; poultry projects may not exceed a combined loan-to-value of 92%).

Participation Loan: MARBIDCO's participation generally ranges from 30% to 49% of the loan, while the lead lender provides 51% to 70%. Interest: 4.25%; the primary lender may require a servicing fee of up to 0.75% (maximum 5.00% for the full term). Aligns with the partnering lender's terms, including a mandatory 15-year MARBIDCO balloon payment.

The Upper Shore Regional Council Farm Loan Equity Incentive Matching Fund will contribute up to $15,000 toward an MRBIFF loan for farmers in Cecil, Kent, and Queen Anne's counties (a 5% borrower equity match is generally required).

All MRBIFF loan applications are developed and submitted to MARBIDCO by a commercial bank or Farm Credit Association loan officer and/or a Farm Service Agency representative. Email completed applications to Brian Cadden at bcadden@marbidco.org, or mail to: Loan Programs, Attn: Brian Cadden, 1410 Forest Drive, Suite 21, Annapolis, MD 21403. Direct and participation loan applications and guidance sheets are available for download on the program page.