The Hospital System Loan Fund Program, administered by FAME, was created by the 130th Maine Legislature (Second Session) to provide financial assistance to eligible Maine hospitals so that they may continue to provide vital services to the residents of Maine. The program provides up to a $12 million loan* with 0% interest and a 24-month payback.
*Loans shall be prorated if multiple applicants chosen.
About the Hospital System Loan Fund Program
Eligibility Criteria Includes:
- Proof that borrower faces a repayment to the Medicare Program in 2022 pursuant to the Medicare accelerated payment program in an amount more than $12 million but less than $18 million as of June 1, 2022.
- Proof that borrower faces repayment obligations that would otherwise constitute a hardship to it pursuant to 42 U.S.C. § 1395ddd(f)(1).
- Proof that borrower has less than sixty (60) days’ cash on hand as of May 1, 2022.
The Following Loan Terms Apply:
- Total amount of funds to be distributed may not exceed $12 million.
- Interest rate of 0%
- Repayment term of 24 months
- Repayment must begin within one month after receipt of funds
- Loan must be repaid in equal monthly installments
- No penalty for early repayments
- Multiple approved applications must result in proration of funds
- Borrower shall participate in Medicaid Program during entire loan term
- Any unpaid loan amount must be repayable by borrower within 30 days of borrower no longer being a Medicaid provider
- Costs and expenses incurred by FAME, including but not limited to maintaining, servicing, and administering the fund, may be paid out of fund