W W W. M A I N E B I Z . B I Z 47
Fact Book / Doing Business in Maine
B U S I N E S S R E S O U R C E S
S
BA loan guaranty programs pro-
vide financing for small businesses
that have potential but cannot qualify
for credit by themselves. e SBA
doesn't provide the loan, but guaran-
ties a portion of the loan provided by
a lender (except for microloans).
e lender decides after the busi-
ness applies whether an SBA guaranty
is needed.
Basic 7(a) Loan
program
is is the SBA's most frequently used
non-disaster financial assistance pro-
gram because of its flexibility in loan
structure, variety of uses for the proceeds
and availability.
e loans are funded by SBA-
approved lenders; the guaranty that the
SBA provides reduces the lender's risk.
If the borrower defaults, the lender can
request SBA pay the guarantied portion
of the debt, with the borrower still obli-
gated for the full amount.
To qualify, a business must meet
the lender's criteria and 7(a) program
requirements, and the lender must
certify that it would not provide the loan
under the proposed terms and condi-
tions without an SBA guaranty. To get
the guaranty, the applicant must be
eligible and creditworthy and the loan
structured under conditions acceptable
to the SBA.
For more details, contact:
U.S. Small Business Administration
Maine District Office
68 Sewall St.,
E.S. Muskie Federal Bldg.,
Room 512
Augusta, ME 04330
207-622-8551
www.sba.gov/me
Eastern Maine Development Corp.
40 Harlow St., Bangor
(207) 942-6389 or (800) 339-6389
emdc.org
Granite State Development Corp.
217 Commercial St.,
suite 301, Portland
(207) 740-8659 or (207) 646-5988
granitestatedev.com
Pine Tree State Certified
Development Corp.
120 Exchange St., suite 205, Portland
(207) 773-3104
frider@megalink.net
pinetreestatecdc.com
Microloan program
Contact an SBA district office
for information lenders or go to
www.sba.gov/microloans.
e program provides loans up to
$50,000 to women, low-income,
minority and veteran business own-
ers by making money available to
nonprofit intermediaries that make
the loans directly to start-up and
existing businesses. e proceeds
can be used for working capital, or
to buy furniture, fixtures, supplies,
materials or equipment. Microloans
may not be used to buy real estate.
Interest rates are negotiated between
the borrower and the intermedi-
ary. e maximum term is six years.
Because money is borrowed from the
intermediary, SBA is not involved in
the application or approval process.
Payments are made directly from the
business to the intermediary.
Androscoggin Valley Council
of Governments
125 Manley Road, Auburn
(207) 783-9186
avcog.org
CEI
30 Federal St., suite 100, Brunswick
(207) 504-5900
ceimaine.org
Community Concepts Finance Corp.
17-19 Market Square, South Paris
(207) 743-7716 or (800) 866-5588
community-concepts.org
MaineStream Finance
262 Harlow St., Bangor
(207) 973-3500 or (800) 215-4942
mainestreamfinance.org
Northern Maine Development
Commission
11 W. Presque Isle Road, Caribou
(207) 498-8736 or (800) 427-8736
nmdc.org
SBA business loans
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