Oil Storage Facility and Tank Replacement Program

Effective October 5, 2016, FAME is suspending the acceptance and processing of applications for loans or loan insurance from the Underground Oil Storage Replacement Fund, including direct loans for projects under the Oil Storage Facility and Tank Replacement Program and loan insurance through commercial lenders, due to lack of funds. Any applications for such funding received by FAME after October 5, 2016 will be returned without review. When and if funding becomes available, we will update the program information. Questions about funding should be directed to the Maine Department of Environmental Protection. Thank you for your patience; we apologize for any inconvenience.

This loan program is intended to help businesses remove aging tanks and related equipment by providing low-interest, fixed-rate financing. Funds can be used for the removal, disposal and replacement of above-ground and underground commercial storage tanks and associated piping. Funds can also be used to purchase and install vapor 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); or be required to install a vapor recovery system; or be renovating an above-ground or underground oil tank or related equipment including piping.
  • 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

Up to $600,000 for tank, piping, and related equipment removal and replacement.

Funds for this program are limited, please contact Charlie Emmons 207-623-3263 for remaining funds available.

Interest Rate

Fixed and based on ability to repay (up to current Prime).

Loan Term

Up to 10 years.

Security

Business and personal assets; debt may be subordinated.

Fees

Commitment fee: 1%

Process

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

Additional Information

Loan insurance option: 100% insurance to lender.

Application

Not available

Contact

FAME