Mainebiz

V O L . X X V I N O. X X V I I I N OV E M B E R 3 0 , 2 0 2 0 26 B A N K I N G / F I N A N C E / I N S U R A N C E F O C U S and what FAME could do to help, says Jennifer Cummings, FAME's director of business programs. In March, FAME announced it would collaborate with Maine lenders to offer special, limited-time direct loans and loan insurance to eligible Maine businesses affected by COVID-19. "We really were able to react quickly" to help businesses across Maine, includ- ing those FAME had already been working with through its commercial lending partners and through its direct loan portfolios, says Cummings. e programs offer special terms to Maine-based businesses that have experienced interruption or hardship due to COVID-19. Benefits include: Direct loans up to $50,000 offered at reduced interest rates and fees Six months interest-only payments Up to 75% pro-rata loan insurance on loans up to $250,000 "Pro rata," or "pro-rated," means the insurance covers a percentage of the lender's loss after a default and liquidation. Originally scheduled to run out on Sept. 30, the business relief pro- grams have been in such demand that FAME extended them through March 31, 2021. e six-month extension was made "due to the lingering economic effects of the pandemic, as well as continued federal, state and regulatory economic stimulus programs, lender partner feedback, and our belief that credit impacts on borrowers are likely to manifest themselves in the coming six months," according to a statement by Jay Violette, chairman of FAME's board of directors. $40 million reserve Originally financed by taxpayers, FAME has over the years accumulated a reserve of $40 million that today funds its business finance programs. e reserve continually replenishes as loans are paid back. Kennebec Savings Bank was established in 1870 to help every member of our community save, thrive and grow. Serving the Maine banking community for over 150 years. Visit www.KennebecSavings.Bank to view a complete list of our residential and commercial products. » C O N T I N U E D F RO M P R E V I O U S PA G E We're ready for a slew of new requests. — Jennifer Cummings FAME FAME Funds F AME and participating lenders made special terms available to Maine-based businesses experiencing interruption or hardship due to COVID-19. COVID-19 relief loan insurance for lenders: In partnership with lending institutions, FAME offer guaranteed approval of Online Assistance loans submitted electronically and deemed "COVID- 19" at a 50% insurance rate, with some eligible for 75% coverage, on loans up to $250,000 per borrower (down from pre-COVID cap of $750,000). COVID-19 relief refinance of existing lender debt: Allows Maine banks and credit unions to receive up to 50% (up from 40%) pro- rata commercial loan insurance on existing debt not currently insured by FAME. COVID-19 relief business direct loan: Loans up to $50,000 per loan/borrower, reduced interest rate, decreased fees for Maine-based businesses. Maturity period reduced from five years to one. Maine Seed Capital Tax Credit Program: Offers state income tax credits or refundable tax credits for 40% (down from 50%) of eligible investment; maximum cumulative qualified investment per company $3.5 million (down from $5 million); limit of quali- fied investment per company per year is $2 million. Additional COVID-19 relief programs: Available for individuals/ employees and students.

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