Loan Insurance Program
The Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution.
Eligibility
Businesses located in the State of Maine.
Insurance Types
1) Pro-rata: covers a certain percentage of lenders loss after a default and liquidation, up to 100%.
2) Leveraged: Covers 100% of lenders loss up to 25% of the loan amount.
Loan Amount / Exposure
- Traditional Application Process: Up to 90% of a lender's loan on a pro-rata basis or up to 25% on a leveraged basis. 100% insurance is available for loans to veterans, oil storage facility projects, and waste oil disposal site clean-up projects. FAME exposure to any one relationship may not exceed $4,750,000 (this amount is reviewed and set annually).
- OLA Application Process: Up to 60% of a lender's loan on a pro-rata basis. FAME exposure may not exceed $250,000.
- Some eligibility requirements apply to working capital loans.
Guidelines to Restructure Existing Debt
Click here for guidelines.
Interest Rate
Determined by Lender.
Loan Term
Consistent with the useful life of the assets being financed or provided as collateral.
Security
Assets being financed and other business assets, as necessary.
Guarantees
Unlimited personal guarantees of business principals, secured by personal assets (where available), are generally required.
Fees
Process
1) Traditional Loan Insurance: Fact sheet and application are available on the link below. Lender provides a complete FAME application package. Most loan insurance decisions are made at the staff level; however, decisions on FAME exposures of $1,000,000 or greater must be approved by the FAME Board of Directors.
2) OnLine Answer (OLA): Lender applies on-line with immediate answer. Please contact FAME for details to enroll.
Application
Click
here for application. The application is in a PDF format, which can be completed on-line and must be printed and sent to FAME. A completed copy can be saved by going under "File" and "Save As" and saved in the directory of your choice.
The applications above can be viewed using Adobe Acrobat. You may download a free copy of Adobe Acrobat Reader by clicking
here.
Contact
207- 623-3263
1-800-228-3734
FAX: 207-623-0095
TTY: 207-626-2717