State Small Business Credit Initiatives
Funded by the Small Business Jobs Act of 2010, this program provides financing through the following Maine loan programs:
• Regional Economic Development Revolving Loan Program (“REDRLP”)
• Economic Recovery Loan Program (“ERLP”)
• Small Enterprise Growth Fund (“SEGF”)
Businesses applying for SSBCI funding through one of the above programs, must meet the standard eligibility requirements of the respective program. In addition, the following federal SSBCI eligibility requirements apply:
• Gross Sales Limit: N/A
• Employee Limit: 750 maximum
• Eligible Purposes: Support loans or investments/projects up to $20 million for legitimate business purposes; including but not limited to: start-up costs, working capital, business procurement, franchise fees, equipment, inventory, purchases of non-investment real estate (commercial or otherwise), and the purchase, construction, renovation or improvements of an eligible place of business.
• Ineligible Purposes: Refinancing existing debt where SSBCI would replace private funds, reimbursement of funds owed to any owner, repayment of delinquent state or federal income taxes, financing a non-business purpose, supporting an existing extension of credit, securities, the acquisition or holding of any other real property for passive investment purposes, and lobbying activities, and an ownership change that would not benefit the business.
• Eligible Businesses: Sole proprietor, LLC, partnership, corporation, or other legally recognized business entity. Borrowers may be state-designated charitable, religious, non-profit, government-owned, consumer or marketing cooperative, or faith-based organization
• Ineligible Business Types: Real estate investment, speculative, firms involved in lending, gambling, pyramid sales plans, financial institutions, and businesses prohibited by federal law. In addition, principals of the business shall not be convicted of a sex offense against a minor.
• Capital At Risk: Private lenders or investors must have at least 20% their capital at risk of default. Capital at Risk calculations must include SSBCI funding. See FAME for details.
• Leverage Requirements: The goal of the SSBCI program is to leverage or stimulate “Private Financing” *, with an overarching program goal of 10:1. Under special circumstances, FAME may approve leverage ratios as low as the regulatory minimum of 2:1. Contact FAME for specific ERLP/SSBCI leverage limits. Contact the Small Enterprise Growth Fund for specific SEGF/SSBCI leverage limits. Below are the leverage limits for the REDRLP/SSBCI Program:
|$25,001 to $75,000
*NOTE: The SSBCI definition of “Private Financing” excludes some forms of financing. See FAME for details.
Loan Amount, Interest Rate, Loan Term, Security, Guarantees
See Applicable Program Fact Sheets (REDRLP, ERLP, or SEGF)