Dairy Improvement Fund

Open to Maine farms engaged in the commercial production of cow milk or cow milk products, the Dairy Improvement Fund loan program is intended to help farms and other dairy enterprises fund capital improvements to maintain and enhance the viability of their operations.

About the Dairy Improvement Fund

Funding

The Dairy Improvement Fund loan program was developed by the Maine Department of Agriculture, Conservation and Forestry and is administered by FAME.

Eligibility

Maine dairy businesses recognized by the Maine Department of Agriculture, Conservation and Forestry as a dairy enterprise, dairy, dairy farm, or business making commercial milk products are generally eligible. Eligible borrowers must keep cows, sheep, and/or goats that contribute milk to their products.

Eligible uses include design, construction or improvement of milking parlors, dairy barns, silos, grain bins, feed sheds, or land or equipment purchases that enhance the viability and vitality of an established Maine dairy enterprise.

Loan funds may not be used for working capital unrelated to project implementation, or to finance or refinance projects commenced, costs incurred, or expenses paid prior to the date of the submission of a completed application (and such costs and expenses shall not be considered eligible project costs for determining the matching financing or private funds requirements). However, such restrictions may be waived for good cause, as determined by the Commissioner in his or her discretion, upon written request for a waiver made at the time of the submission of a letter requesting eligibility determination.

Eligible construction or major renovation projects with construction financing needs in excess of $50,000 will require an additional outside construction lending source. FAME will assist applicants in identifying construction take-out financing for any project where construction monitoring is needed.

Loan Amount/Exposure

• Up to 90% of total project cost, if eligible project cost is $100,000 or less.*
• Up to 75% of total project cost, if eligible project cost is over $100,000.*
• Maximum loan amount is $250,000.

*If eligible project cost is $100,000 or less, borrower must inject at least 10% in private funds into the project. If eligible project cost is over $100,000, 25% in private funds is required.

Interest Rate

1% fixed rate

Payment

Deferred principal and interest payments may be available up to 24 months from closing; interest accrues beginning at closing.

Loan Term

Up to 30 years and determined by the useful life of the asset(s) being financed.

Security

Asset(s) being financed and other collateral, as required or available.

Guarantees of business principals owning 20% or more of the business, or 5% or more and receiving significant income from the business.

Fees

• Loan origination fee: 1% (for loans over $100,000).
• Borrower is responsible for all loan closing costs.

How to Apply

Step One

The first step in the application process is an eligibility determination. Submit an Eligibility Form to the Maine Department of Agriculture, Conservation and Forestry (DACF).

If the project is deemed eligible, DACF will notify the applicant(s) and will forward the Eligibility Form to FAME.

Eligibility Contact (DACF)

Maine Department of Agriculture, Conservation and Forestry
Agricultural Resource Development Division
207-287-3491
DACF@maine.gov

Step Two

Once the project has been deemed eligible by DACF, the applicant(s) must then complete and submit the required program application documents (listed below) to FAME.

Application Documents (FAME)

Save and print your completed forms, then mail to FAME.

• Dairy Improvement Fund Application
• Personal Financial Statement

Application Contact (FAME)

FAME
207-623-3263 or 1-800-228-3734
Business@FAMEmaine.com