CESO, Maine – Businesses and nonprofits in southern Maine in need of critical gap funding, due to negative effects of the coronavirus pandemic, can apply for new loan fund granted by law CARES from the US Economic Development Administration to the Southern Maine Planning and Development Commission.
SMPDC will review applications and administer low-interest loans to affected businesses in York and South Oxford counties.
“The aim of the fund is to quickly provide funds to businesses to alleviate the sudden and severe economic problems caused by the coronavirus pandemic,” said Paul Schumacher, executive director of SMPDC. “Borrowers will have to show how the pandemic has affected them. SMPDC will change the terms and conditions of the loans, as well as limit application fees, so that the loan meets the needs of businesses and allows them to survive and grow. “
As a local lender, SMPDC maintains relationships with businesses and trade organizations in the region, which will enable it to provide a quick and personal response to business lending needs, Schumacher said.
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More specifically, the fund:
Allow interest rates to be set at three quarters of the prime rate, currently 3% or less;
Allow short interest-only periods or deferred payments;
Charge a $ 100 application fee for loans of $ 25,000 or less;
relax underwriting requirements;
Provide a streamlined application process for loans under $ 25,000.
“These investments will provide small businesses in Maine with the capital to bounce back from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future,” said US Secretary of Commerce Wilbur Ross by presenting the award to SMPDC. .
SMPDC is a non-partisan, non-profit organization that cultivates sustainable communities and strengthens local governments by leading the planning and economic development of 39 member cities in southern Maine. Visit www.smpdc.org.