Low interest loans available for So. Maine businesses, nonprofits impacted by COVID-19

SACO, Maine — Southern Maine businesses and nonprofits in need of critical gap financing, due to being adversely affected by the coronavirus pandemic, can apply to a new loan fund awarded by the U.S. Economic Development Administration CARES Act to Southern Maine Planning and Development Commission.

SMPDC will review applications and administer the low interest loans to impacted businesses in York and southern Oxford counties.

“The goal of the fund is to quickly provide funds to businesses in order to alleviate sudden and severe economic issues caused by the coronavirus pandemic,” said Paul Schumacher, executive director of SMPDC. “Borrowers will need to show how the pandemic impacted them. SMPDC will modify terms and conditions of loans, as well as limit application fees, so that the loan will fit the businesses needs and allow them to survive and grow.”

As a local lender, SMPDC has relationships with businesses and business organizations in the region, which will enable it to provide a timely and personal response to business lending needs, Schumacher said.

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Specifically, the fund will:

Allow interest rates to be set at three-quarters of prime rate, currently 3% or lower;

Allow for short periods of interest only or deferred payments;

Require an application fee of $100 for loans $25,000 or less;

Relax underwriting requirements;

Provide a simplified application process for loans under $25,000.

“These investments will provide small businesses across Maine with the necessary capital to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future,” U.S. Secretary of Commerce Wilbur Ross said in making the award to SMPDC.

To apply, email Chuck Morgan at cmorgan@smpdc.org, or Kelsey Pelton at kpelton@smpdc.org, call (207) 571-7065 or visit smpdc.org/economic_recovery.

SMPDC is a non-partisan nonprofit that cultivates sustainable communities and strengthens local governments by leading planning and economic development for 39 member towns in Southern Maine. Visit www.smpdc.org.