Agricultural Marketing Loan Fund

The Agricultural Marketing Loan Fund program provides financing to help Maine farms and agricultural businesses enhance and improve their products. Funds can be used for enhanced production processes, innovative marketing techniques or product improvements.

The Agricultural Marketing Loan Fund provides low-cost financing to help farmers, food processors and aquaculture operators adopt new and innovative equipment and facilities in order to improve and enhance the manufacturing, marketability and production of Maine products. For example, funds may be used for the design, construction or improvement of commodity and storage buildings and packing and marketing facilities; or for the construction, renovation or acquisition of land, buildings, equipment, docks, wharves, piers, or vessels, located in the state of Maine and used in connection with an agricultural enterprise.

Funding

The Agricultural Marketing Loan Fund is funded through the Maine Department of Agriculture, Conservation and Forestry. FAME administers the program.

Eligibility

Generally, any business engaged in growing or harvesting plants; raising animals; growing, obtaining or adding value to plant or animal by-products; aquaculture; or producing, processing, storing, packaging or marketing a product derived from such a business.

Loan Amount/Exposure

  • Up to 90% of total project cost, if project cost is $100,000 or less, depending on the type of project.*
  • Up to 75% of total project cost, if project cost is more than $100,000, depending on the type of project.*
  • Up to 45% of total project cost, if project is related to the production of potatoes.*
  • Maximum loan amount is $250,000, except loans for acquisition costs for start-up enterprises are limited to $100,000.

*Borrower must inject at least 5% in private funds into project.

Interest Rate

5% fixed for the term of the loan or 2% if borrower has been awarded Maine Farms for the Future Grant.

Loan Term

Determined by the useful life of assets being financed.

Security

Assets being financed and other collateral, as required or available.

Fees

  • Loan origination fee: 1% (for loans over $100,000).
  • Borrower is responsible for all costs of closing the loan.

Process

Applications are available at the Maine Department of Agriculture, Conservation and Forestry website. Once determined eligible, the application is forwarded to FAME for financial review and recommendation to a loan committee and the Commissioner of the Maine Department of Agriculture, Conservation and Forestry for final approval.

Contact

For eligibility: Maine Department of Agriculture, Conservation and Forestry: 207-287-7620 Download an application at the Maine Department of Agriculture, Conservation and Forestry website or call: Jessica Nixon 207-287-3494.