This program is to help reduce borrower interest rate expenses. 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
- Non-agricultural, for-profit businesses located in Maine.
- 20 or fewer employees or annual sales of less than $2,500,000.
- Must be a manufacturer or have 70% of sales outside the State.
- Loan proceeds for real property, fixed assets, research or working capital.
- 50% owned by Maine residents.
- Create or retain one job for each $20,000 of deposited funds.
Loan Amount / Exposure
- Maximum investment of $200,000 (actual loan may be greater).
- Participation limited to 2 years (with some exceptions).
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 are then passed on to the borrower).
Loan Term
- Investment made for maximum of 1 year (loan term may be greater).
- Participation limited to 2 years.
Security
Collateral requirements are at the lender's discretion. The State investment is not pledged in the event of loan default.
Fees
$50 application fee.
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 be insured by FAME.
Contact
207-623-3263
1-800-228-3734
FAX: 207-623-0095
TTY: 207-626-2717
