About this programme
The FAME Direct Loan, also known as the Economic Recovery Loan Program (ERLP), is flexible gap financing that the Finance Authority of Maine (FAME) lends directly to new or existing Maine businesses when traditional loans are not the solution.
It exists for businesses that have already exhausted other sources of capital but can still show a reasonable ability to repay.
How it works
Most FAME Direct Loans are under $500,000, though larger loans up to $1,000,000 may be available if the business demonstrates substantial public benefit and FAME has sufficient funds.
The interest rate is fixed and will not exceed 8% at the time of loan commitment. The maximum term is five years, with amortization based on the useful life of the financed assets or pledged collateral; balloon payments are typically required.
The loan is secured by the assets being financed and other required collateral. Any individual or entity owning 20% or more of the borrower, or owning 5% or more and receiving substantial income from the borrower, must personally guarantee the loan.
There is a 1% commitment fee, and all closing costs are paid by the borrower (they may be financed with the loan proceeds).
FAME underwrites the completed application and business plan and then notifies the borrower of its decision.
Who can apply
The business must be based in Maine.
The business must show a reasonable ability to repay the loan.
The business must demonstrate that other sources of capital have already been exhausted.
How to apply
- Discuss the loan request with a FAME loan officer before submitting, to check program eligibility (encouraged though not required).
- Complete the FAME Direct Loan (Economic Recovery Loan Program) Application, along with a business plan.
- Complete the Environmental Questionnaire.
- Complete the Employment Plan.
- Complete the Personal Financial Statement.
- Email or mail the completed documents to FAME.
Documents you’ll typically need
- FAME Direct Loan (Economic Recovery Loan Program) Application
- Business plan
- Environmental Questionnaire
- Employment Plan
- Personal Financial Statement
Frequently asked
How much can I borrow?
Most FAME Direct Loans are under $500,000, though up to $1,000,000 may be available if you can show substantial public benefit and FAME has enough funds available.
What interest rate will I pay?
A fixed rate that will not exceed 8% at the time your loan is committed.
Do I need to have been turned down elsewhere first?
Yes. You must demonstrate that other sources of capital have already been exhausted.
Is there a fee to get the loan?
Yes, a 1% commitment fee, plus closing costs paid by the borrower, which can be financed with the loan proceeds.
Will I need to personally guarantee the loan?
Yes, if you own 20% or more of the business, or own 5% or more and receive substantial income from it.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.