March 26, 2020 Article

Funding Programs For Businesses Impacted By COVID-19

We know our business clients are facing unprecedented uncertainty and questions as the world grapples with the implications of COVID-19. The flood of news and information is coming rapidly and can be overwhelming. At Preti Flaherty, we are here to help. We have compiled a list of funding resources available to our business clients through government loan programs. We will continue to update these as more information becomes available.

FAME LOANS

For Our Maine-Based Business Clients

The Finance Authority of Maine (FAME) has announced its COVID-19 Relief Business Direct Loan Program which has made available direct loans of up to $50,000 for Maine-based businesses experiencing interruption or hardship due to COVID-19. FAME has allocated up to $10,000,000 in reserves for this program. For more information on qualification, or to submit an application, please visit FAME’s website here.

FAME also announced its COVID-19 Relief Interim SBA Finance Loan Program which provides direct loans of up to $100,000 to Maine-based businesses which provide proof of commitment for SBA financing with the intention that the FAME loan would be originated for use by the business owner until such time as the SBA loan is funded. This would serve as bridge loan to be paid off by the SBA loan when it is funded.  For more information on this loan program, click here.

For Our Maine-Based Lender Clients

For Maine lenders, FAME has rolled out its COVID-19 Relief Loan Insurance for Lenders program for Maine banks and credit unions to make special terms available to lenders which provide business loans to borrowers experiencing interruption or hardship due to COVID-19. Eligible loans can receive pro-rata insurance coverage of up to 50% - 75%. For more information, click here.

For Our Maine Consumer and Self-Employed Clients

Through FAME’s COVID-19 Relief Consumer Loan Program, no- to low- interest consumer loans are being made available through a loan guaranty program involving participating Maine banks and credit unions. This is not a direct loan program and not all Maine banks and credit unions are participating, so interested borrowers should first check with their regular bank. This program provides for up to $5,000 in loans (minus unemployment benefits received by the borrower) for individual Maine residents, including those who are self-employed, who have experienced a reduction in income since January 1st as a result of COVID-19. Renewal loans may also be available. For more information, click here

SMALL BUSINESS ADMINISTRATION PROGRAMS

The Small Business Administration (“SBA”) offers a Small Business Administration Economic Injury Disaster Loan program. In connection with state Governors, the SBA has announced it will provide targeted, low-interest loans to small businesses and non-profits which have been impacted by COVID-19 by providing loans of up to $2,000,000. The amount available to eligible borrowers will depend on proof of actual economic harm from COVID-19 and inability to secure alternative lending sources. For more information or to apply, click here.

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