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Finance Authority of Maine offers a range of programs
About FAME
The Finance Authority of Maine (FAME) is a quasi-independent state agency whose mission is to enrich business and educational outcomes through relevant, timely financial support to Maine’s people. FAME’s vision is a Maine where all people have access to improved economic outcomes through business growth and education attainment.
Since its creation by the Legislature in 1983, FAME has helped over 10,000 Maine companies with over $2.5 billion in financing, helping to create and retain over 200,000 Maine jobs. In FY 25, FAME supported $98 million in business-related financing comprised of $82 million in FAME Direct Loans and Commercial Loan Insurance. Additionally, $2.5 million in forgivable loans were awarded through the Thrive Maine program; $3.8 million in direct loans were made by the Department of Agriculture, Conservation and Forestry and Maine Rural Development Authority programs administered by FAME; and $9.4 million in investments resulted from our Maine Seed Capital Tax Credit program. In addition, FAME administered $4.5 million in investments and loans originated by our economic partner agencies through Grow Maine program. FAME has worked diligently this past fiscal year, along with DECD and other lending partners, not only as a provider of financing, but also as a convener of potential other sources of financing from other sources to support Maine companies seeking to grow and succeed. To learn more about FAME, please visit www.famemaine.com.
FAME plays a pivotal role in fostering workforce development across the state. A well-trained and educated workforce attracts businesses to the state, driving innovation and creating job opportunities. This, in turn, enhances the quality of life for Maine’s residents and strengthens the state’s economy. FAME supports Maine families through programs and free information that helps them afford and attain higher education. We do so through reducing financial barriers and providing information on planning and paying for higher education, career preparation, and financial education, including responsible borrowing. FAME also administers Maine’s 529 college savings plan and higher education grant and loan programs. This ensures that Maine’s residents can pursue degrees and certifications in fields that are crucial to the state’s economic development.
We are proud to have been named for the tenth straight year as one of the Best Places to Work in Maine. The FAME staff is deeply committed to providing superior customer service to its customers, the people of Maine, and believe that being a Best Place to Work creates a positive and productive work environment.
FAME business finance programs
Commercial loan insurance: Loan insurance helps 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 loan insurance is available for almost any prudent business activity and insures up to 90 percent (100 percent for veterans) of a loan to a maximum FAME insurance exposure for any one relationship of $7.5 million. FAME offers up to 75% pro rata insurance for up to $1,500,000 of FAME exposure through its Online Answer (OLA) insurance platform, a secure web application, through which lenders can apply easily and receive almost immediate approval.
FAME direct loan: Provides subordinate or gap financing to businesses affected by their current economic situation. For larger loans, up to $1 million 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. Fixed rate not to exceed 8% at time of loan commitment.
Revenue obligation securities program: Provides tax-exempt bond financing to manufacturers and 501(c)(3) entities.
Municipal securities approval program: Offers local tax-exempt bond financing to manufacturing borrowers and 501(c)(3) entities.
Maine seed capital tax credit: Designed to encourage equity and near-equity investments in eligible Maine businesses, directly and through private venture capital funds. FAME may authorize state income tax credits or re-fundable tax credits to investors for 40 percent of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research or working capital. Annual total program tax credits are now $10 million per year following recent legislative action.
Maine New Markets capital investment tax credit program: Modeled after the federal tax credit sharing a similar name, this state program is designed to attract investment in economically distressed areas of Maine. The program was recently reauthorized by the Maine Legislature. An allocation of tax credits may be provided for businesses that invest in qualified community development entities. The credit is equal to 39% of the qualified amount invested, and is spread over a seven-year period, with 7% allowed in year three and 8% in each of years four through seven. The credit may not be taken in the first two years after investment. The maximum aggregate amount of tax credit authority is set forth at $250 million, and the amount of tax credits claimed per fiscal year is limited to $20 million.
Regional economic development revolving loan program: Provides subordinate and/or gap financing up to $350,000. The program is offered through the various regional economic development agencies throughout the state.
Programs in partnership with Maine Department of Agriculture, Conservation and Forestry
Agricultural marketing loan fund: Provides 5% fixed-rate loans to natural resource-based businesses that employ new and innovative technologies and processes to improve, expand, and enhance the manufacturing, marketability, and production of Maine-made agricultural products. Funds may be used for the design, construction or improvement of facilities such as commodity storage buildings and packing and marketing facilities. Funds may also be used to purchase or retrofit machinery and equipment.
Potato marketing improvement fund program: Funds may be used by borrowers for the construction and/or retrofitting of potato packing and storage facilities. They also may be used for new construction or improvements to storage and/or centralized packing facilities, as well as for the acquisition of packing, sizing, washing and drying equipment. In addition, PMIF funds may be used to fund programs that improve the economic viability of the potato industry. Such improvements may include irrigation equipment and water source development projects. The program is administered by the Maine Potato Board in conjunction with the commissioner of the Department of Agriculture, Conservation and Forestry and FAME. The interest rate on loans is Prime rate on the date of loan commitment or up to a maximum of 5%. Existing loans in good standing may be refinanced at the same rate.
Maine dairy improvement fund: Helps farms and other dairy enterprises fund capital improvements to maintain and enhance the viability of their farms. It offers 1% fixed interest rate for loans up to $250,000.
Private activity bond financing
As noted above, FAME is one of the state’s authorized issuers (along with MaineHousing, the Maine Municipal Bond Bank and the state treasurer) of private activity bonds. FAME’s revenue obligations securities program provides tax-exempt bond financing to eligible borrowers without any recourse or obligation on the part of the state. FAME acts as a conduit for borrowers in order to allow them to access favorable interest rates and to help stimulate the economy and create and retain Maine jobs. Such bonding, commonly referred to as “conduit bonds” due to their relatively risk-free, pass-through nature, are authorized by the Internal Revenue Code in order to stimulate economic development in certain targeted industries such as manufacturing, nonprofits, and solid waste disposal facilities.
The Maine Funding Network
The Maine Funding Network, a portal any business can utilize when seeking financing from public and nonprofit funding organizations, recently celebrated its first successful year of operation. MFN has generated 1,600 funding and business counseling matches for over 600 Maine businesses with more than 20 public, non-profit, and alternative funding and counseling agencies. Each business receives potential funding options and/or business counseling resources, after which the funding organization reaches out to help. The portal provides a central intake platform, common application, and automated lender matching. The portal supports three key strategies: streamlining business applications, matching, and funding from Maine’s public and non-profit providers; aggregating data to improve understanding of demand/need within Maine’s business community; and improving collaboration between public, non-profit, and for-profit agencies using the cloud-based funding platform. “We’ve been able to partner with over twenty of the state’s public, non-profit, and alternative funding organizations and they are all working with the businesses to increase their chances of success,” stated Jonathan Poole, Chief Operations Officer. Current partner organizations include: Androscoggin Valley Council of Governments, Black Owned Maine, Coastal Enterprises, CEI Women’s Enterprises, Community Concepts Finance Corporation, The Cooperative Fund of the Northeast, Eastern Maine Development Corporation, FAME, Four Directions Development Corporation, Greater Portland Council of Governments, Immigrant Welcome Center Greater Portland, Maine Angels, Maine Office of Business Development, Midcoast Council of Governments, Small Business Development Center of Maine, Maine Technology Institute, Maine Venture Fund, Northern Maine Development Commission, City of Portland, SCORE, Southern Maine Finance Agency, Southern Maine Planning & Development Commission, and Sunrise County Economic Council. FMI, visit MaineFundingNetwork.com
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