Linked Investment Program for Agriculture

This program helps reduce a borrower's interest rate. Loans are approved and funded by the financial institution according to its own policies. The Maine State Treasurer makes a deposit in the form of a certificate of deposit (CD) with the originating lender at up to 2% less than the prevailing rate, provided a similar discount is applied to the interest rate on the lender's loan to the business.

The applicant's principal source of income must derive from producing crops or raising livestock. Funds must be applied to an agricultural operating loan (specifically for the purchase of seed, feed, fertilizer, chemicals, veterinary services, labor, production-related energy and/or other production) — not loans for capital projects.

Maximum CD investment of $200,000 (the actual loan may be greater — the $200,000 is the Treasurer's certificate of deposit, not a loan cap). Up to 2% interest-rate savings to the borrower. The CD is made for a maximum of one year (the loan term may be greater). Participation is limited to two years (an additional two years is available in limited cases). Collateral is at the lender's discretion; the CD is not pledged as collateral. $100 reservation fee (half may be refunded in limited cases).

Contact FAME for the reservation application, which is due by April 30 of each year. A $100 reservation fee applies.