July 15, 2015
FAME Enhances Popular Loan Insurance Program
FAME’s Board of Directors has approved an increase in the maximum loan insurance available to lenders through FAME’s successful Commercial Loan Insurance Program.
With the recent receipt of an additional $4 million in bond funding approved by Maine voters last November, FAME has increased its Commercial Loan Insurance Program maximum exposure to one borrower from $4.4 million to $5 million effective immediately. The change was approved by FAME’s Board at their December 2014 meeting.
FAME’s Commercial Loan Insurance insures a portion of a loan to a business made by a participating financial institution, thereby helping to cover a lender’s credit risk. For a business, it may mean the difference between obtaining a loan, going out of business, or never getting the opportunity to start a business.
“FAME is pleased to increase the amount of loan insurance available to our lending partners, while maintaining our risk exposure relative to our capital,” stated Ray Nowak, FAME Board Chair. “We deeply appreciate the additional funds approved by Maine voters and their confidence in FAME’s ability to successfully partner with Maine lenders to help Maine businesses succeed.”
During Fiscal Year 2015, FAME’s Commercial Loan Insurance Program helped to create 676 Maine jobs and retain an additional 1,768 jobs. FAME assisted 251 Maine companies through the program during this period. FAME loan insurance of approximately $42 million supported $72 million in commercial loans to Maine businesses. The additional bond funding of $4 million will allow FAME to provide an additional $20 million in commercial loan insurance.
Some companies and lenders that recently utilized the program include: Wireless Partners, LLC (insuring $3.4 million loan through Mechanics Savings Bank that will improve cell phone service and broadband data access in Washington and Hancock Counties); Redzone Wireless, LLC (insuring $4 million loan by Camden National to help boost Maine’s broadband internet speed); and Polycor New England, Inc. (insuring $3.5 million loan by Caisse Centrale Desjardins US Branch to help finance the purchase of a quarry and the construction of a curb manufacturing facility in North Jay).