Economic Recovery Loan Program:

This program provides subordinate (gap) financing to assist businesses in their efforts to remain viable and/or improve productivity. From time to time FAME utilizes funds in this program to address specific community needs.

Eligibility: Maine-based businesses that exhibit a reasonable ability to repay the loan and demonstrate that other resources of capital have been exhausted.

Loan Amount: $300,000 maximum

Interest Rate: Fixed rate-Wall Street Journal Prime plus 2%, set at commitment

Term: maximum of 5 years. Amortization may be based on the useful life of the assets being financed or additional collateral pledged. Balloon payments typically required.

Security: Assets being financed and other collateral, as required.

Guarantees: Unlimited personal guarantees of the business principals; secured by personal assets (when available) are required.

Contact: Finance Authority of Maine, 207-623-3263.
www.famemaine.com

 

Kim Wallace Adaptive Equipment Loan Program (mPower):

Funded through the Kim Wallace Adaptive Equipment Loan program, this program provides assistance to individuals and business forthe purchase, construction, or installation of any product or equipment that allows an individual to become more independent within the community; promotes mobility; or improves independence and quality of life. Businesses may use loan funds to facilitate compliance with the Americans with Disabilities Act (ADA).

Eligibility: Maine resident with a disability or a Maine-based business.

Loan Amount: $100,000 maximum

Interest Rate: based on ability to pay or a business’s cash flow, not to exceed Wall Street Journal Prime Rate.

Term: Up to 20 years, depending on useful life of the collateral.

Security: Assets being financed and other collateral, as required.

FAME underwrites all loan requests and makes a recommendation to the Kim Wallace Adaptive Equipment Loan Board. The board makes the final decision; FAME coordinates loan closing for all approved loans. Loan requests of 430,000 or less may receive faster response when meeting certain criteria.

Contact: Finance Authority of Maine, 207-623-3263.
www.famemaine.com

 

Energy Conservation Loan Program:

Funded through the Maine Public Utilities Commission (PUC), this program provides low-interest loans to improve energy efficiency in Maine workplaces.

Eligibility: Maine–based businesses whose projects are approved by the PUC. Businesses must exhibit a reasonable ability to repay the loan.

Loan Amount/Exposure: 90% of project cost up to a maximum loan of $35,000.

Interest Rate: 1% fixed for term of loan.

Term: usually 5 years. Longer terms may be negotiated depending on the useful life of the assets being financed or additional collateral pledged.

Security: Assets being financed and other collateral, as required.

Contact PUC to determine project eligibility. The PUC will submit completed applications to FAME for underwriting and preparation of loan closing documents. Closings are coordinated by the PUC.

Contact: For eligibility Efficiency Maine Program at PUC, 207-287-3318.

Contact: For information Finance Authority of Maine, 207-623-3263.
www.famemaine.com

 

Intermediary Re-lending Program:

This program is designed to assist small businesses by providing subordinate (gap) financing for any prudent business activity (some restrictions apply)

Eligibility:

  • Most Maine-based businesses, except agriculture.
  • Must be located outside defined urban areas.
  • Must demonstrate historical ability to service debt.
  • Must show efforts made to access additional sources of capital.
  • Must demonstrate employment of low-income persons, farm families and displaced farm families.

Loan Amount/Exposure: Amount is not to exceed 75% of project costs up to a maximum loan of $250,000.

Interest Rate: Wall Street Journal Prime (fixed at commitment).

Security: Assets being financed and other collateral, as required.

Contact: Finance Authority of Maine, 207-623-3263.
www.famemaine.com

 

Regional Economic Development Revolving Loan Program:<

This program is designed to make loans through Maine’s regional economic development agencies for the purpose of creating or retaining jobs. FAME makes disbursements to regional economic development agencies and the agencies in turn make loans to eligible borrowers.

Eligibility: Businesses that have sales under $5,000,000 or employ 50 or fewer employees, conducting business in the following categories:

  • Advanced manufacturing technologies
  • Advanced information systems
  • Advanced biological/natural resource technologies
  • Conversion from defense industry
  • Significant export involvement (goods or services)
  • Significant research and development
  • Micro-businesses (under 10 employees)
  • Quality childcare projects (also administered directly by FAME)

Loan Amount/Exposure:

  • 33% of total project cost, up to a maximum loan amount of $200,000
  • 50% of total project cost for projects between $50,000 and $100,000
  • 100% of total project cost for projects less than $50,000

Interest Rate: negotiated with regional agency, usually below market rate.

Term: Up to 20 years depending on assets being financed.

Security: Assets being financed and other collateral, as required.

Process: Funding is provided through the local regional economic development agency listed as a contact.

Please contact agency for information and applications. The agency reviews, underwrites and notifies borrower of final loan determination.

Contact: Biddeford/Saco Area Economic Development Corporation, 207-282-1748.
www.bsedc.org

 

Oil StorageFacility and Tank Replacement Program:

This program provides low-interest, fixed-rate financing for the removal, disposal, and replacement of aboveground and underground commercial storage tanks, piping, and related equipment associated with the tank, as well as the purchase and installation ofvapor recovery systems.

Eligibility:

  • Borrower must be replacing a leaking tank, a tank located on an aquifer, a tank that is failing a statistical test or an abandoned tank; or have received notification from the Maine Department of Environmental Protection (DEP).
  • Net worth may not be greater than $750,000
  • Debt service coverage may not be greater than 3:1.
  • Propane facilities are excluded.

Loan Amount/Exposure: Loan isup to $600,000 for tank, piping, and related equipment removal and replacement.

Interest Rate: Fixed and based on ability to pay (up to current Prime).

Loan Term: Up to 10 years.

Security: Business and personal assets; debt may be subordinated.

Process: Submit a complete application to FAME. FAME will underwrite the request and make final decision.

Contact: Finance Authority of Maine, 207-623-0095
www.famemaine.com

 

CDBG Development Fund:

One of the program activity groups in the CDBG Economic Development Program (EDP). It provides gap funding for communities to assist businesses in the creation/retention of quality jobs, more than 50% of which must be for low and moderate income persons. Themaximum award amount per job created/retained is $20,000 except if the business is located in a HUB or Empowerment Zone or ofthe business is Pine Tree Zone certified, in which case the maximum amount per job created/retained is $30,000. The Development Fundmay loan up to $300,000 for the acquisition or installation of commercial or industrial buildings, equipment, and site improvements.Applicants may utilize the CDBG Development Fund Loan in combination with the Non–Municipal Owned and Municipal Owned CDBG Economic Development Programs for the same project but are limited to a total of $400,000 in CDBG assistance. The Development Fund cannot be used to refinance existing debt. The Development Fund loan must be matched on at least a 1 to 1 basis. Loan term, interest rate,security, and collateral are negotiated with DECD.

Contact: Department of Economic and Community Development, Office of Community Development, 207-624-7484.
www.meocd.org