Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 101 - LOAN INSURANCE PROGRAM
Section 457-101-2 - Eligibility

Universal Citation: 94 ME Code Rules ยง 457-101-2

Current through 2024-38, September 18, 2024

A. Borrower Eligibility: In order to be eligible for Loan Insurance, the Lender's loan must be to an "agricultural enterprise," "fishing enterprise," "industrial enterprise," "manufacturing enterprise," or "recreational enterprise" as defined in the Act, that is located in the State, and that is not a religious or fraternal organization.

B. Project Eligibility: In order to be eligible for Loan Insurance the Lender's loan must be for use by the Borrower solely to finance the acquisition of a business or to acquire real or personal property to be used in a business, or to finance business operations. Ineligible uses of Loan proceeds include:

(1) refinancing of existing indebtedness of the Lender that is not insured by the Authority and as to which the Lender is reasonably likely to suffer a loss, as determined by the authority, unless specifically approved by the Authority on the basis that a significant benefit to the Borrower will result from the loan which benefit would not be extended to the Borrower without loan insurance;

(2) personal, family or household expenses of the borrower or any guarantor;

(3) acquisition, construction or operational expenses related to residential housing, investment real estate, gambling facilities or adult entertainment facilities;

C. Lender Eligibility. In order to be eligible for Loan insurance, a Lender must be capable of prudently monitoring the loan in accordance with industry standards, as determined by the Authority.

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