A series of loan programs have been made available through state and federal governments. If you have any questions, please contact Matt Worthen.
SBA:
The SBA is working with states to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million to help overcome the temporary loss of revenue they are experiencing.
https://disasterloan.sba.gov/ela/
SBA is also providing up to $25,000 on a more expedited basis for qualifying businesses to help overcome the temporary loss of revenue. This may serve as a bridge loan, while applying for an Economic Injury Disaster Loan, or as a standalone loan.
https://www.sba.gov/document/support–express-bridge-loan-pilot-program-guide
Information on the Paycheck Protection Program (PPP) is available here and the SBA Disaster Loan Application under the CARES act is available at:
https://www.sba.gov/page/disaster-loan-applications
FAME:
The Finance Authority of Maine has also made a number of loan programs for Maine businesses that are experiencing economic hardship from COVID-19 and lenders providing loans to affected Maine based businesses.
Two loan programs mirror the SBA loans and are available for Maine-based businesses:
FAME has a direct loan program of up to $100,000 with proof of SBA commitment for a disaster loan that is repaid using the SBA loan funds once funded. https://www.famemaine.com/business/programs/covid-19-relief-loan-programs/covid-19-relief-interim-sba-finance-loan-program/
Maine businesses experiencing interruption or hardship due to COVID-19, without other sources of capital, are eligible for a FAME loan of up to $50,000.
https://www.famemaine.com/business/programs/covid-19-relief-loan-programs/covid-19-relief-business-direct-loan-program/
For Maine banks and credit unions, FAME has special terms available for lenders providing business loans to borrowers experiencing interruption or hardship as a result of COVID-19, including pro-rata insurance of up to 75%.
https://www.famemaine.com/business/programs/covid-19-relief-loan-programs/covid-19-relief-lender-insurance-program/
COVID-19 Resources:
Paycheck Protection for Small Businesses
Dealing with Debt: COVID-19’s Effect on Foreclosures, Bankruptcy, and Collections
Families First Corona Virus Response Act
COVID-19 and the Construction Industry
Delays and the AIA Owner – Contractor Agreements
Essential Businesses – Construction Industry
These materials have been prepared for general informational purposes only and are not intended as legal advice.