Mainebiz

W W W. M A I N E B I Z . B I Z 21 A P R I L 6 , 2 0 2 0 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E Risk is in FAME's DNA Putting together all three programs was quick, but wasn't completely from the ground up, Wagner says. "FAME's loans are generally to companies that are in some kind of distressed state," Wagner says. "e vast bulk of what we do already is for compa- nies that need help. e nature of what we do is take on risk that the lender doesn't want to take on. It is already in our DNA." But FAME had to come up with a system to get the money out faster and more favorably to businesses affected by the disruption. In the past, FAME has responded to smaller disasters, like a snowless winter that was tough on snowmobile com- panies and the hospitality industry. But nothing like what's happening now. "We are extraordinarily busy and working like mad to keep up," he says. In a normal month, FAME might do one or two loans. e day Wagner talked to Mainebiz, there were 12. The time is now ose lending the money are focused on immediate impact, not what might hap- pen down the road. "One of things we've done laying out so many reserves, is trying to be a bul- wark in the early stages," Wagner says. As the economic climate evolves, they may have to be "more surgical" about lending. Levesque, too, says Auburn is focused on the present. e loans will keep being approved on a weekly basis until the $50,000 is gone. "e city has been through a lot in the past," he says. "We'll do this and come out of it better than before." Maureen Milliken, Mainebiz senior writer, can be reached at mmilliken @ mainebiz.biz www.GawronTurgeon.com cPort Credit Union: Middle Street, Portland COVID-19 loans available for Maine businesses W hile there are some small emer- gency programs available, these are loans available to businesses throughout Maine. There are also grants and other emergency measures, but this focuses on loans. Where to get help Both SCORE (scoremaine.org) and Small Business Development Centers (Mainesbdc.org) have information on filling out loan applications related to COVID-19, what other resources are available and information on SBA and the federal Coronavirus Aid, Relief and Economic Security Act. CARES Act Loans Emergency Small Business Adminis- tration 7(a) Loans: Up to $10 million available to help maintain operations (payroll, mortgage, rent, utilities and some debt payments) for entities that existed on March 1. Employers that maintain employment between March 1 and June 30 are eligible to have their loans forgiven. Available to small busi- nesses, Section 501(c)(3)s, Section 501(c)(19)s and Tribal businesses of 500 total employees or fewer. Economic Injur y Disaster Loans expanded, with creditwor thiness requirements eliminated, to Tribal busi- nesses, cooperatives and ESOPs from Jan. to Dec. 31. FAME, SBA loans Visit www.FAMEmaine.com for details. COVID-19 Relief Interim SBA Finance Loan Program: The SBA disaster relief loan for designated areas, including Maine. FAME provides interim direct loan funding up to $100,000 since, follow- ing approval from the SBA, additional documentation from the borrower may be required before full disbursement of the SBA loan. FAME will get an assign- ment of the loan proceeds from the SBA and prefund the loan, so the money is available to the business sooner. COVID-19 Relief Loan Insurance for Lenders: FAME will approve any Online Assistance Loan submitted electroni- cally and deemed "COVID-19" at a 50% insurance rate. Some will be eligible using our current standards (and be assessed decreased fees) for 75% coverage. Lending partners will share the risk with FAME. Borrowers should contact their local lender to see if they are offering the program. COVID-19 Relief Business Direct Loan Program: For borrowers who can't get a loan from a lending or through the FAME lenders program. Loans are up to $50,000 and a decreased inter- est rate and decreased fee schedule for Maine-based businesses that are interrupted or experience hardship from COVID-19. We are here for you. Building an Economy that Works for Everyone From Wicked Fast working capital loans to business advice and policy advocacy, CEI is here to help Maine's small businesses. 207.504.5900 www.ceimaine.org

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