FAME Partners with SBA and Maine Lenders on COVID-19 Relief Loan Programs
The Finance Authority of Maine (FAME) is partnering with the U.S. Small Business Administration (SBA) and local Maine lenders to offer special, limited-time loans and loan insurance to eligible Maine businesses affected by COVID-19.
FAME and participating lenders will make special terms available to Maine-based businesses that have experienced interruption or hardship due to COVID-19. Various benefits include: loans up to $50,000 offered at reduced interest rates; interest-only payments; up to 75% pro-rata loan insurance on loans up to $100,000; interim financing in conjunction with the SBA wherein FAME makes loan proceeds available while approved SBA borrowers await federal funding.
Additionally, the Legislature recently enacted emergency legislation related to COVID-19 response that includes a new consumer loan guarantee program to be administered by FAME in partnership with Maine lending institutions. It will provide a limited number of low to no-interest loans to eligible individuals impacted by the virus.
You can find more details about each of these programs on our website. FAME will host a virtual seminar early next week to share information and answer questions, please watch your email for more information.
The COVID-19 Relief Consumer Loan Program
provides no-to low-interest consumer loans through a loan guarantee program involving Maine’s banks, credit unions, and FAME. Interested borrowers should contact their local bank or credit union (not FAME) to see if the lender is offering this program and to apply. The program offers loans of up to $5,000 (minus any unemployment benefits received by borrower).A borrower may apply for up to three (3) loans, one per each 30-day period.
The COVID-19 Relief Lender Insurance Program
provides commercial loan insurance of 50-75% to lenders who make loans to Maine businesses experiencing interruption or hardship due to the COVID-19 pandemic.
The COVID-19 Relief Interim SBA Finance Loan Program
provides FAME Direct Loans of up to $100,000 with special terms available to eligible borrowers who provide proof of commitment for SBA financing. The FAME loan would be originated for use to the business owner until the SBA loan is funded. The SBA loan would then pay-off the FAME loan.
The COVID-19 Relief Business Direct Loan Program
provides FAME Direct Loans of up to $50,000 with special terms available to Maine-based businesses experiencing interruption or hardship due to the COVID-19 pandemic.
Read the full press release on these COVID-19 relief loan programs here
FAME will make every effort to work with borrowers on special accommodations for their loans, especially during this challenging time. The health and welfare of our associates, customers, and the state as a whole are of the utmost importance to us.