COVID-19 Economic Impact-Related

RESOURCES

Finance Authority of Maine COVID-19 Relief Business Direct Loan Program

This program provides direct loans from the Finance Authority of Maine to Maine-based businesses experiencing interruption or hardship due to COVID-19 and who have demonstrated that other sources of capital have been exhausted.  These loans can be for up to $50,000, have an interest rate of Wall Street Journal Prime minus 1%, and have a term of 12 months.

Applications for this program are to be submitted via e-mail to business@FAMEmaine.com, and a complete application package will consist of the following:

More information regarding this program is available at https://www.famemaine.com/business/programs/covid-19-relief-loan-programs/covid-19-relief-business-direct-loan-program/. 

Finance Authority of Maine COVID-19 Relief Interim Small Business Administration Finance Loan Program

This program provides direct loans from the Finance Authority of Maine to Maine-based businesses who can provide proof of commitment of Small Business Administration COVID-19 financing.  These loans can be for up to $100,000, have an interest rate of Wall Street Journal Prime minus 1%, have a loan term of 90 days, and can be funded as quickly as 48 business hours after loan application.  These loans are for those who will be receiving a loan from the Small Business Administration, but who are in need of funds before that loan arrives.  The Small Business Administration loan proceeds are used to repay the Finance Authority of Maine. 

Applications for this program are to be submitted via e-mail to business@FAMEmaine.com, and a complete application package will consist of the following:

More information regarding this program is available at https://www.famemaine.com/business/programs/covid-19-relief-loan-programs/covid-19-relief-interim-sba-finance-loan-program/. 

Small Business Administration COVID-19 Economic Injury Disaster Loan Program

This program provides direct loans from the Small Business Administration to small businesses with less than 500 employees (including sole proprietors, independent contractors, and self-employed persons), private nonprofit organizations, or 501(c)(19) veterans organizations affected by COVID-19.  These loans can be for up to $2,000,000 (higher loan amounts allowed for major employers), have a maximum interest rate of 3.75%, and have a maximum term of 30 years.  These loans are for working capital and are intended to assist a business or organization through a disaster recovery period.

A new enhancement being offered for this loan program at this time is the ability to secure a loan advance of $10,000 which will be forgiven (converting the loan into a grant), regardless of whether a business is approved or denied for the loan.  To be considered for this advance, you must select the option "I would like to be considered for an advance of up to $10,000." found in the online loan application. 

Applications to this program are to be submitted online to the Small Business Administration at https://covid19relief.sba.gov/#/.

More information regarding this program is available at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance. 

Additional resources for this program:

Small Business Administration Paycheck Protection Program

This program provides loans from the Small Business Administration through an eligible and participating bank to small businesses with 500 or fewer employees (including sole proprietors, independent contractors and self-employed persons), 501(c)(3) nonprofit organizations, 501(c)(19) veterans organizations, or tribal business concerns (section 31(b)(2)(C) of the Small Business Act) affected by COVID-19.  These loans can be for up to the lesser of 2.5 months of average monthly payroll costs or $10,000,000, have an interest rate of 1%, and have a term of 2 years.  

An important feature of this loan program is the ability for partial or complete loan forgiveness (converting the loan into a grant).  A business seeking full loan forgiveness must meet the following requirements over the 8-week period following loan origination: 1) at least 75% of the loan funds must be spent on payroll costs; and 2) the business must maintain its employment levels, salaries, and wages, or if the business had previously laid off employees due to COVID-19, it must quickly (re)hire employees to restore its pre-COVID-19 levels of employment, salaries, and wages. 

An eligible and participating bank could be an existing Small Business Administration 7(a) lender, a federally-insured depository institution, federally-insured credit union, or a Farm Credit System institution.  Businesses who are interested in this program are strongly advised to first contact their usual bank to see if they are eligible and are willing to participate in this program.  If a business has determined that their usual bank is ineligible and/or unwilling to participate in this program, they may contact the Economic Development Office who will be able to recommend several banks who are willing to help businesses who are not current customers apply to this program.    

An application to this program is submitted to a participating lender, and a complete application package will consist of the application form (Small Business Administration form 2483) plus any additional forms and/or documentation required by your lender.

More information regarding this program is available at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp. 

Additional resources for this program: