1. Dorchester County Presentation - 7/18/13 Stephen McHenry, Executive Director

2.  “Is a Rural Development Financial Intermediary Org. Serving All of Maryland”  With a focus on: - Farming - Forestry - Seafood - Aquaculture

3.  Resource-based industry important to all of Maryland  More than just economics: Every Marylander needs to have adequate food (and shelter, water, energy, etc.) – most of which is provided from resources from rural areas.

4.  Half the State’s land area is privately owned rural land (3 million acres +)  Ag/RBI important to culture, heritage, tourism and quality of life.  Resource-based industries underpin the economies of many rural counties. * Especially in Western Maryland and the Eastern Shore (one-third of economy).

5.  Access to affordable credit and capital  Information/referral/ business planning  Help for young/beginning/ diversifying farmers (and watermen)  Loss of rural land

6. MARBIDCO Partners  Commercial Banks & Farm Credit System  State Agencies (MDA, DNR, DBED, MCE, MEA, TEDCO)  USDA (and other Federal Agencies)  Rural regional development councils  Local economic development offices  Farm and commodity groups  Rural industry associations  MD Ag Land Preservation Foundation  Foundations and local land trusts

7.  Food production and processing, including: - commodity crops - table crops - seafood & aquaculture  Fiber prod./processing: - timber/wood products - lumber, pallets, floors, paper and pulp, etc.  Renewable energy - farm solar & biomass

8.  Since 2007, MARBIDCO has made investments in 238 agricultural and rural businesses totaling about $19 million.  Partnered with 17 banks and 3 local government revolving loan funds, with a leverage of $36 million in bank financing.  Helped 78 young or beginning farmers.  Helped to finance 88 farm value added processing projects.

9.  Funded 34 Rural Business Project Investments totaling $3.75 million since 2007 (About 20% of all MARBIDCO investment $$$.)  Secured Lending (MRBIFF and Working Capital Loans) – 16 projects ($2,750,000)  Small Value Added and Local Government Cost Share Grants – 6 projects ($25,000)  Shellfish Aquaculture Loans – 12 projects ($765,000)

10.  MARBIDCO Offers 8 Lending Programs today  5 of the loan programs are offered using MARBIDCO resources – these loans require collateral security  3 other loan programs are for special purchases and involve a higher level of credit risk (unsecured lending)  The “workhorse program” is the Maryland Resource- Based Industry Financing Fund Loan (MRBIFF) NOTE: All loans reviewed and approved by a loan review committee.

11.  Offers low-interest (3% APR initially) loans for the purchase of land and capital equipment.  Maximum Loan Amount - $200,000 ($400,000 for land purchase & $600,000 for a major project).  Financial commitment: A commercial lender and/or a public instrumentality must have an equal commitment in the project.  MARBIDCO will accept a junior lien position in most situations.

12.  Complements the financial services offered by commercial lenders by helping to make rural business “gap” financing both available and affordable.  Flexible loan terms to match and enhance commercial lender offerings.

13.  Rural Business Equipment & Working Capital Loan FD  Maryland Vineyard Planting Loan Fund  Forestry Equipment and Working Capital Loan Fund  Rural Business Energy Efficiency Improvement Loan F  Maryland Shellfish Aquaculture Financing Fund  Maryland Remote Setting Aquaculture Financing Fund  Agricultural Cooperatives Equity Investment Fund

14. Grant program offerings in 2013:  Local Government Ag/RBI Project Cost Share Program  Maryland Value Added Producer Grants (Capital Assets Option & USDA Matching)  NEW: Urban Ag Commercial Lending Incentive Grants (in municipalities)

15. Product has incremental value realized by the producer as a result of:  Change in physical state  Differentiated production or marketing  Product segregation  Economic benefit realized from the production of farm or ranch-based renewable energy.

16.  Installment Purchase Agreements (IPAs), in partnership with MALPF.  County Leveraged IPAs and Aggie Bond/Option IPAs.  Next Generation Farmland Acquisition Program (Pending Transfer Tax $$$).

17. www.marbidco.org Please visit us on the web……