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Wednesday, May 24, 2006
Loan programs available for business owners
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If your small business was damaged by the recent floodwaters, you're eligible for a pair of loan programs announced Tuesday by the Finance Authority of Maine. The loans are designed to provide immediate assistance to flooded business owners while they wait to apply for low-interest federal loans. "The funds are available today," said John Witherspoon, FAME's chief executive officer. "And that's the idea - to get money immediately to people who need it immediately." Under one program, FAME will insure up to 75 percent of a loan taken from a private bank. The usual limit is 60 percent. The fee assessed to borrowers will drop from 1 percent of the loan to 0.5 percent. The second loan program allows small businesses to borrow up to $75,000 directly from FAME at an interest rate 2 percent below the prime rate. Witherspoon said he expects flood-affected businesses to use the two programs to help renovate and rebuild their inventories before the start of the summer tourism season. Gov. John Baldacci has asked President Bush to provide expedited disaster relief to Maine, and he said Tuesday that he expects his request will be granted. Once businesses become eligible for federal disaster loans from the Small Business Administration, the FAME loans can be refinanced. Witherspoon estimates that businesses may have to wait 60-90 days until they have access to the federal money. It's important for small businesses that plan to refinance FAME loans using federal disaster funds to make sure they meet the federal eligibility requirements, Witherspoon said. Small-business owners who want more information about the FAME loans can visit www.famemaine.com. Staff Writer Kevin Wack can be contacted at 282-8226 or at:
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