FAME Direct Loan

(formerly Economic Recovery Loan Program)

When traditional loans are not the solution for your financing needs, the FAME Direct Loan (also known as the Economic Recovery Loan Program or ERLP) may be the answer. This program helps your new or existing business with flexible gap financing directly from FAME.


Businesses must:

  • Be Maine-based
  • Exhibit reasonable ability to repay the loan
  • Demonstrate that other sources of capital have been exhausted

Loan Amount

  • Larger loans, up to $1,000,000, may be available if substantial public benefit is demonstrated and sufficient funds are available. Most often, however, FAME Direct Loans are less than $500,000.

Interest Rate

Fixed rate – Wall Street Journal Prime plus 2%, at time of loan commitment.

Loan Term

Maximum of five years. Amortization may be based on the useful life of the assets being financed or additional collateral pledged. Balloon payments are typically required.


Assets being financed and other collateral, as required.


Any individual or entity that owns 20% or more of the borrower, or owns 5% or more of the borrower and receives substantial income from the borrower, must guarantee the loan. All loans must be guaranteed by owners of at least 51% of the borrower in aggregate, except for nonprofit borrowers and borrowers owned by 20 or more shareholders. Exceptions to this policy must be approved by the FAME board.


Commitment fee: 1%

All closing costs are paid by the borrower and may be financed with the loan proceeds.


Submit a complete application and business plan to FAME. FAME will underwrite the request and notify the borrower of its decision.


Although not required, FAME encourages all applicants to discuss their loan request with a FAME loan officer prior to submission to ensure program eligibility.

All of the following documents accompanied by a business plan must be completed and returned to FAME in order to complete the loan application process:

Application Downloads

For best results, please download .pdf forms locally, then open and complete them with Adobe Acrobat. If you don’t have Acrobat, you can download a free version of Adobe Acrobat Reader here. Save and print your completed forms, then mail to FAME.