Loan Insurance Program
Through our Loan Insurance Program, FAME insures a portion of a loan to a business made by a participating financial institution.
Businesses located in the state of Maine.
1) Pro-rata: covers a certain percentage of lender's loss after a default and liquidation, up to 100%.
2) Leveraged: Covers a certain percentage of lender's loss up to 25% of the loan amount at the time of default.
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 $4,200,000 (this amount is reviewed and set annually. Please verify this amount with FAME).
- Refinance of Existing Debt: up to 40% of lender's loan on a pro rata basis. Certain criteria apply (see below).
- OLA Application Process: Up to 75% of a lender's loan on a pro-rata basis. FAME exposure may not exceed $250,000.
- Working Capital Lines: up to 90% pro rata limited to $1,000,000 of FAME exposure or up to 20% leveraged limited to $500,000 of FAME exposure.
Guidelines to Restructure Existing Debt
Click here for guidelines.
Determined by Lender.
Consistent with the useful life of the assets being financed or provided as collateral.
Assets being financed and other business assets, as necessary.
Unlimited personal guarantees of business principals, secured by personal assets (where available), are generally required.
1) Traditional Application Process: 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 online with immediate answer. Please contact FAME for details to enroll.
All of the following documents must be completed and returned to FAME in order to complete the loan application process:
The applications are 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