This program is to help reduce borrower interest rate expenses on operating loans. Loans will be approved and made by lenders according to their own policies. The Maine State Treasurer will make a compensating deposit with the originating lender to provide interest rate saving as to the businesses on underlying loans.
Eligibility
- Principal source of income must come from producing crops or raising livestock.
- Must be applied to an agricultural operating loan (specifically for the purchase of seed, feed, fertilizer, chemicals, veterinary services, labor, production-related energy and other production inputs).
- Priority matrix is used to allocate investments.
Loan Amount / Exposure
Maximum investment of $200,000 (actual loan may be greater).
Interest Rate
2% interest rate savings to borrower (Maine State Treasurer buys a CD from the bank at 2% below the current market rate. The bank's savings on cost of funds is then passed on to the borrower).
Loan Term
- Investment made for maximum of one year (loan term may be greater).
- Participation limited to two years (with some exceptions).
Security
Collateral requirements are at the lender's discretion. The State investment is not pledged in the event of loan default.
Fees
$100 reservation fee (a portion may be refunded in specific circumstances).
Additional Information
Loans approved and made by lenders according to their own policies. This investment does not constitute loan collateral. Loan does not need to insured by FAME.
Contact
207-623-3263
1-800-228-3734
FAX: 207-623-0095
TTY: 207-626-2717
