The Forestry Equipment and Working Capital Loan Fund addresses the unique financing needs of Maryland’s forest products-related businesses with respect to working capital and equipment purchases. Application Submission Process
All applications must be originated by the applicant. Cooperative extension agents, Maryland Forest Service, county agricultural marketing officials, and other business professionals may assist in the development of applications. Applications are processed as they are received.
Maximum Loan Amounts: $150,000
Loan Terms: Equipment: 3 to 6 years. Operating Loan: 1 to 2 years.
Forestry Equipment and Working Capital Loan Fund Success Story
Helping to sustain the forestry industry in Maryland is a key mission objective of MARBIDCO. Red Rock, LLC, a third generation, family-owned and operated forestry company located in Western Maryland has utilized MARBIDCO programs on several occasions.
In 2014, they secured a FEWCL loan to help them complete the purchase of timber from the City of Frederick Watershed in Frederick County and the Green Ridge Forest in Allegany County.
MARBIDCO Interest Rate: Will be established on a case-by-case basis based on the level of anticipated credit risk. The minimum interest rate for any loan made under this program will be 5.75% 4.75% and the maximum rate will be 10% (Fixed rate).
Loan Origination Fee:1% of the loan amount NOW REDUCED BY 50% to 0.5% (This fee, plus any applicable closing charges, will be collected at loan settlement.)
Equity Requirement: Typically 5-20% of a project’s total cost.
Lender Participation: Required. A commercial lender must participate in the application process by providing a letter of referral.