Administered by FAME, Thrive Maine is a forgivable loan program for businesses and nonprofits that demonstrate COVID-related negative economic impacts. The program is funded by the American Rescue Plan Act (ARPA), an economic stimulus bill that was passed by the 117th United States Congress, with $58 million allocated to support Maine small businesses by the Legislature and Governor Mills under LD 1733 through the Maine Jobs and Recovery Plan.
- Loan forgiven at a rate of 25% per year over a four-year period.*
*Forgivable loans are considered taxable income at the rate they are forgiven. See IRS tax code and consult your accountant for more information.
What is a forgivable loan?
A forgivable loan is a type of loan in which some or all of the amount can be forgiven if the borrower meets certain conditions. Forgivable loans are considered taxable income at the rate they are forgiven.
What are the size limits for loans?
The loan amount applied for must be a minimum of $10,000 and must not exceed $500,000.
How competitive is the application process?
Not every applicant will be funded. In the first application cycle, the loan amounts requested were seven-times more than the total funding available in the first cycle. We are anticipating a similar outcome in the second application cycle.
What are the conditions that need to be met in order for my Thrive Maine loan to be forgiven?
You must be in business, stay in good standing with the State of Maine, pay yearly taxes, and complete the yearly reporting connected to Thrive Maine.
What are the reporting requirements to receive the loan?
An annual certification confirming that the business is active is required.
How will I be notified that my loan was approved?
Notification will be sent via email to the email address provided on the application. The review process is expected to take 6-8 weeks. However, depending on the amount of applications received, this process could take longer.
After my forgivable loan is approved, how long will it take to receive the funds?
Once approved, you will be notified and money will be sent out as soon as possible.
What happens if my business closes before the end of four years or the business no longer has a significant operation located in Maine? Will I have to pay back the loan?
The unforgiven portion will need to be repaid with 3% interest. The portion forgiven while in business or located in Maine does not need to be repaid.