Capital

Maine Public & Private Business Finance & Venture Funding Sources are listed below. You will find additional resources for securing capital in the TechMaine Entrepreneur Handbook

Public Business Funding Sources

Finance Authority of Maine (FAME)
The Finance Authority of Maine (FAME) is Maine's public business finance agency. FAME supports start-up and expanding businesses by working closely with Maine banks to improve access to capital. FAME offers a wide array of programs, ranging from traditional loan guarantees for small and large businesses to tax credits for investments in dynamic manufacturing or export-related firms. FAME has also established taxable and tax-exempt bond financing programs that provide loans to creditworthy firms at very favorable rates and terms. Some of FAME's many programs designed to help start-up and expanding businesses are summarized here. For more comprehensive information, including eligibility criteria, please call 207-623-3263 or visit FAME’s Web site.

Commercial Loan Insurance Program
This program provides large business borrowers, who would otherwise have problems securing conventional loans, with access to capital. FAME can insure up to 90 percent of a commercial loan, not to exceed $7 million, for most types of business projects.

Export Financing Services
Working Capital Insurance from FAME provides additional security to lenders and encourages greater lending activity for international business ventures. Export Credit Umbrella Insurance, provided by the Export-Import Bank of the United States (Eximbank) and administered by FAME, reduces international credit risk and allows an exporter to offer credit terms to foreign buyers in a competitive market.

Maine Seed Capital Tax Credit Program
This program encourages the increased availability of risk equity to enterprises that bring capital into the State. It provides 30% tax credit for private investments of up to $200,000 per investor per eligible company. Eligible companies may receive up to $1,000,000 in investments; recent changes allow second round and venture fund investments in the same amounts.

Plus l Computer Loan Program.
This program provides lenders with loan insurance on an expedited basis for small businesses that need to borrow money to acquire and install computer equipment and software.

Regional Economic Development Revolving Loan Program
This program, administered by FAME, was capitalized with a $10-million bond issue approved by Maine voters in 1994. Under the program, FAME distributes $10 million to community, regional or statewide public sector or non-profit entities that will, in turn, loan the funds to eligible small business borrowers. Businesses may qualify for loans of up to $200,000 from the fund.

Small Business and Veterans’ Small Business Loan Insurance Program
This program is designed to help small businesses that cannot obtain conventional commercial financing. FAME can insure up to 90 percent of a small business loan, to a maximum insurance exposure of $1 million. If the borrower is an eligible wartime veteran, the authority may insure up to 100 percent of a loan of $75,000 or less, and up to 90 percent of a loan up to a maximum exposure of $1.1 million.

Small Enterprise Growth Fund - Maine's Venture Capital Fund
This program was created to provide Maine entrepreneurs with access to patient sources of venture capital. The Fund targets the needs of entrepreneurs with financial requirements of between $150,000 and $350,000. The fund provides loans that are convertible to equity to certain small business enterprises on flexible terms with other rights to be required based on relative risk. See contact information below.

Bond Financing Programs
FAME, using its authority to issue taxable and tax-exempt bonds, provides reduced-rate financing to large projects. Under the SMART-E Bond Programs, FAME issues tax-exempt bonds for manufacturing projects, which must meet eligibility requirements established under the Internal Revenue Code. The SMART Bond Program and Major Business Expansion Program offer reduced interest rates by using FAME's guarantee authority to put the strength of the State of Maine's credit rating behind financing for larger projects.