A series of loan programs have been made available through state and federal governments. If you have any questions, please contact Matt Worthen.
The SBA is working with states to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million to help overcome the temporary loss of revenue they are experiencing.
SBA is also providing up to $25,000 on a more expedited basis for qualifying businesses to help overcome the temporary loss of revenue. This may serve as a bridge loan, while applying for an Economic Injury Disaster Loan, or as a standalone loan.
Information on the Paycheck Protection Program (PPP) is available here and the SBA Disaster Loan Application under the CARES act is available at:
The Finance Authority of Maine has also made a number of loan programs for Maine businesses that are experiencing economic hardship from COVID-19 and lenders providing loans to affected Maine based businesses.
Two loan programs mirror the SBA loans and are available for Maine-based businesses:
FAME has a direct loan program of up to $100,000 with proof of SBA commitment for a disaster loan that is repaid using the SBA loan funds once funded. https://www.famemaine.com/business/programs/covid-19-relief-loan-programs/covid-19-relief-interim-sba-finance-loan-program/
Maine businesses experiencing interruption or hardship due to COVID-19, without other sources of capital, are eligible for a FAME loan of up to $50,000.
For Maine banks and credit unions, FAME has special terms available for lenders providing business loans to borrowers experiencing interruption or hardship as a result of COVID-19, including pro-rata insurance of up to 75%.
These materials have been prepared for general informational purposes only and are not intended as legal advice.