Grow Maine Small Business Loan & Capital Direct Loan Program

Grow Maine, administered by FAME in conjunction with various statewide lending partners, will provide up to $62 million of State Small Business Credit Initiative (SSBCI) funding to eligible Maine businesses. Funding will be available through FAME and its intermediary partners via loan guarantees, direct loans, and equity capital. Grow Maine is intended to provide broad access to capital to help Maine businesses grow and provide jobs for Maine people that will have long-term positive effects on Maine’s economy.

SSBCI is a federal program administered by the U.S. Department of the Treasury that was created to strengthen state programs that support private financing to small businesses. Governor Mills designated FAME to serve as the state agency to accept and administer the allocated funds for the program.

FAME is offering 3 different kinds of funding:

• Direct Loans

• Equity Investment

• Commercial Loan Insurance

Only direct loans are covered by the application information here, for the others, go to this page for more information.

Maine businesses and nonprofits with fewer than 750 employees are eligible.

Eligible Purposes

Support loans or investments/projects up to $20 million for legal business purposes, including but not limited to the following:

• Start-up costs

• Working capital

• Business procurement

• Franchise fees

• Equipment

• Inventory

• Purchases of owner-occupied non-investment real estate (commercial or otherwise)

• Purchase, construction, renovation, or improvements of an eligible place of business

Ineligible Purposes

• Refinancing existing debt where SSBCI would replace private funds

• Reimbursement of funds owed by any owner

• Repayment of delinquent state or federal income taxes

• Financing a non-business purpose

• Supporting an existing extension of credit

• Security purchases

• Acquisition or holding of any other real property for investment purposes

• Lobbying activities

• Owner buyouts or equity substitution, except situations resulting in employee ownership

SSBCI-funded capital deployed by FAME and roughly thirty partner lenders. Read the wind-down note first: FAME's page now describes Grow Maine in the past tense — "Grow Maine... provided up to $62 million of State Small Business Credit Initiative (SSBCI) funding to eligible Maine businesses through 2025" and "The program is currently winding down, but new investments will be made by FAME and its partner organizations using recycled SSBCI funds." So capital is still available, but out of recycled funds rather than a fresh allocation.

Direct loan terms as published:

• Loan size: "Loans up to $5 million were made available through FAME and local participating agencies, with interest rates set by the participating lending institution." And: "The maximum loan amount of $5 million can be a part of a project, which cannot exceed $20 million."

• Interest rate: not fixed by FAME. It is "set by the participating lending institution" — so your rate depends on which partner lender you go through, and no rate range is published.

• Project size: eligible purposes support "loans or investments/projects up to $20 million."

• Leverage: "New SSBCI transactions using recycled funds must adhere to the 3:1 leverage and the 20% PCAR requirements."

• SEDI borrowers get better pricing: "Businesses or owners identified as Socially, Economically Disadvantaged Individuals (SEDI) may be eligible to receive reduced interest rates, fee reductions, and reduced insurance premiums. SEDI borrowers may be eligible for a leverage capital floor of one to one."

Not eligible uses include refinancing existing debt where SSBCI would replace private funds, repaying delinquent state or federal income taxes, reimbursing funds owed by any owner, securities purchases, lobbying, and owner buyouts (except where the result is employee ownership).

No fee schedule specific to Grow Maine is published on this page; FAME points to a general "Program Fees & Rates" page for lender programs.

Apply for a direct loan with FAME by following these instructions. Your final application packet must be submitted by email to business@famemaine.com.

You may need some of the documents available below.

• Information and FAQs

• Application Instructions