Small business loans of up to $5 million are now available through the Midcoast Council of Governments as a participating lender in Grow Maine, a state-wide program that provides access to capital to help Maine businesses grow.
Federally funded through the State Small Business Credit Initiative and administered by the Finance Authority of Maine, Grow Maine will provide $62 million to eligible Maine businesses through its ending partners. Under this program, businesses and nonprofits with fewer than 750 employees can apply for direct loans, loan guarantees, and equity capital.
Interest rates are set by participating lenders, and the Midcoast Council intends to offer attractive fixed rates at or below the prime interest rate, which is currently 7%. Loan funds can be used for a variety of business purposes, including the acquisition of owner-occupied non-investment real estate, construction, renovations, equipment, and working capital.
Additional project financing may be required to secure funding under the program. Small business owners will need to leverage $3 in private capital for every dollar of loan funding. Businesses or owners identified as socially, economically disadvantaged individuals may be eligible to receive reduced interest rates and reduced fees and/or loan insurance premiums. Qualified borrowers may also be eligible for a reduced private capital leverage ratio of 1:1.
Midcoast Council of Governments is one of more than 30 intermediaries participating in the Grow Maine lending program. “We are excited to participate in Grow Maine, as deploying (State Small Business Credit Initiative) funds will allow us to participate in larger, high-impact projects that allow local businesses to grow and strengthen the economy throughout the Midcoast region,” said Mathew Eddy, Midcoast Council of Governments’ executive director.
Structured as a nonprofit council of governments, the Midcoast Council works to strengthen regional economic resilience for all municipalities and counties within its region, through business financing, technical assistance, and collaborative regional planning. The council serves municipalities and counties located within the Midcoast Economic Development District, which includes all of Sagadahoc, Lincoln, and Knox counties, Brunswick and Harpswell in Cumberland County and areas of Waldo County. For more information, go to midcoastcog.com.
