Fund your Maine business

When your own money is not enough, start with a no-cost advisor, then ask which program actually lends. The Finance Authority of Maine, FAME, is the state’s financing authority. Some of its money goes straight to the business. Some of it sits beside a bank loan. Regular SBA loans come from a lender.

What’s different in Maine

• Advising, webinars, and on-demand courses are no-cost. The Maine Small Business Development Centers say the one-on-one work is no-cost and confidential. Live webinars are no-cost, and on-demand courses are no charge¹.
• FAME can be the lender. The Direct Loan is directly from FAME, for a new or existing business, when a traditional loan is not the solution. You have to show Maine-based, with a reasonable ability to repay, after other sources of capital have been exhausted³.
• The named grant is for technology companies, and it wants a match. It is not a check for opening day at every new business.
• One SBA office covers the state. The main office is in Augusta, and there are also offices in Augusta, Bangor, and Portland².

Do this

1. Write down what you need and what it is for. Equipment, inventory, a purchase of a business, and rent are different asks. The Direct Loan page describes flexible gap financing. It does not print a list of banned uses. Read the application before you assume a use is allowed.
2. Book no-cost advising. The Maine SBDC advising page says the consulting is no-cost and confidential. Live webinars are no-cost, and on-demand courses are no charge¹. Locations and virtual appointments are on the SBDC location page.
3. Use the Maine SBA office. The Maine District Office covers the entire state and offers funding programs, counseling, federal contracting certifications, and disaster recovery, and a connection to lenders and partner groups. The main office is in Augusta. The other offices are in Augusta, Bangor, and Portland².
4. Understand who lends the regular SBA loans. 7(a) and the other ordinary SBA loans come from participating lenders, not the SBA. The district office can connect you to those lenders. The SBA loans guide explains who makes each kind.
5. Read the FAME Direct Loan before you assume a bank has to be involved. The Direct Loan page says the loan is directly from FAME, for a new or existing business, when a traditional loan is not the solution. You must be Maine-based, with a reasonable ability to repay, after other sources of capital have been exhausted. Amounts are usually under $500,000. Up to $1,000,000 if the loan shows a substantial public benefit and funds are available. The rate is a fixed rate no higher than 8% when the loan is committed. The term is a maximum of five years. A balloon payment is typical. There is a 1% commitment fee. The borrower pays closing costs, which may be included in the loan. Anyone who owns 20% or more, or who owns 5% or more and receives substantial income from the business, must guarantee the loan³. FAME underwrites the request and tells you its decision. A conversation with a loan officer before you apply is encouraged and not required.
6. If a bank is willing, ask whether FAME insurance would change the answer. FAME offers insurance on a loan a bank makes, up to 90% of the loan, or up to 100% for a loan to a veteran⁵. The lender, not the business, applies. Online Answer can insure up to $1,500,000 and return a decision immediately.⁴ You apply to the lender. The lender applies to FAME.
7. FAME runs more direct programs for specific uses. The brochure names agricultural marketing, dairy improvement, nutrient management, potato marketing, the Maine Rural Development Authority, and compliance assistance for fuel tanks. Each one has its own page in FAME’s direct loan programs with the loan cap and who qualifies. Read it before you apply. A separate program is loans through Maine's regional economic development agencies, for creating or retaining jobs⁵. That one runs through the regional agencies, not as a check you request only from FAME.
8. Read the equity programs the same way. FAME runs the Maine Seed Capital Tax Credit Program, which gives tax credits to outside passive investors who invest in a small business⁶. The Maine New Markets Capital Investment Program is a state tax credit for investors who put equity into Community Development Entities that finance businesses in low-income communities⁷. These are investor incentives, not cash grants from FAME to any new business. Eligible businesses can still receive private investment or financing through them.
9. A technology company can read the Maine Technology Institute page. Business Innovation Funding is for a Maine business, with leadership in Maine, in one of seven technology sectors, whose project is a technical or scientific innovation. The sectors are biotechnology, composites and advanced materials, environmental technologies, forest products and agriculture, information technology, marine technology and aquaculture, and precision manufacturing. Most awards are grants, often $10,000 to $30,000 the first time, and not more than $100,000 in grants to one company over time. Some later support is a loan or equity. You need at least a 1-to-1 match. Cash is required. In-kind match may cover part of it at the lower levels.⁸ The page starts with a short assessment and does not print a closing date. A business outside those sectors should not plan on this grant.
10. Keep your paperwork ready. Advisors, FAME, and lenders ask for your formation documents and EIN. Register your business and Get your tax IDs are the steps that produce them.
11. After a declared disaster, the SBA can lend directly. Disaster assistance covers several kinds of loan, including physical damage, economic injury, and military reservist economic injury, after a declared disaster, and only if you qualify. Economic injury loans are only for small businesses the SBA decides cannot get credit elsewhere⁹. A disaster by itself does not qualify you. Check the declaration and the loan type before you apply.

What you get back

An appointment with an advisor, and help preparing what a lender or FAME asks for. A loan decision comes only if you qualify, from FAME on the Direct Loan or from a lender on an insured bank loan. A technology grant, if you are eligible and selected, is a separate application with a match. These pages do not promise a finished plan, a grant, or an approval.