Maryland Urban Agriculture Commercial Lending Incentive Grant

Obtaining financing is difficult for most farmers, but particularly for urban farmers. A very small amount of equity capital can make a significant difference in helping these business owners to obtain bank financing (commercial loans).

MARBIDCO’s MUACLIG program addresses the finance needs of urban farmers. With the support of Farm Credit, MARBIDCO provides grant funds to incentivize the urban farmer to try to obtain commercial financing.

This grant is designed to provide an incentive for beginning urban farmers to seek commercial lender financing for the development of their urban agricultural enterprises, including the purchase of a farm property in an eligible urban area. MARBIDCO has partnered with Horizon Farm Credit to establish and manage this fund. Call us today for more information on how to apply for this grant at 410-267-6807.

Eligibility

Applicants must be Beginning Urban Farmers, which are defined as being farmers (either individuals or incorporated businesses) with the principal operator(s) having:

• 10 or fewer years of commercial farming experience – either in a for-profit or not-for-profit setting or having limited personal or business financial resources (net worth less than $300,000);

• A commercial food/fiber growing operation located in an urban area, as defined by the United States Census Bureau and ​any incorporated municipality recognized by the State of Maryland.

Eligible business activities include the purchase of:

• Real estate

• Agricultural inputs and supplies such as seeds, fertilizer, compost, and

• baskets.

• Farm tools and equipment.

• Greenhouses, high tunnels, refrigeration, and irrigation systems; and

• Hired labor (at no more than 20% of the total eligible project cost).

Maximum Grant Amount: $10,000, calculated at no more than 20% of the project’s total cost and no more than 25% of the amount of the approved commercial loan for the project. (The minimum grant amount is $1,000 – with a commercial loan of $4,000, combines for a $5,000 project).

Application

Applicants must verify in their application that commercial lender or Farm Service Agency loan proceeds are available to help complete the proposed farming project. Applicants that are awarded grants may not materially deviate from their approved business plans without approval from MARBIDCO and the participating commercial lender.

Mail completed applications to:

MARBIDCO Programs

1410 Forest Dr., Suite 21

Annapolis, MD 21403