Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 303 - NATURAL DISASTER BUSINESS ASSISTANCE PROGRAM
Section 457-303-6 - CRITERIA AND CONSIDERATION

Universal Citation: 94 ME Code Rules ยง 457-303-6

Current through 2024-38, September 18, 2024

A. No application will be approved unless the chief executive officer determines that the borrower has insufficient access to any other funds from any source on a timely basis other than pursuant to this program, and that the borrower needs financial assistance in order to recover from the effects of the natural disaster and ensure the continued viability of the business.

B. No application will be approved unless the chief executive officer determines that there is a reasonable likelihood that the borrower will be able to repay any assistance under this program according to its terms.

C. No application will be approved to the extent that it seeks more financial assistance than the borrower actually needs in calendar year 1987. Financial assistance may not be used to expand or otherwise materially change a business from what it was prior to the natural disaster, provided that mitigation of future natural disaster damage shall be an eligible use of financial assistance.

D. No application submitted by a lender will be approved unless the chief executive officer determines that the secured loan will be documented and serviced as required by the Authority.

E. No application will be approved unless the chief executive officer determines that the borrower is eligible and the loan proceeds will be used in connection with an eligible project.

F. No application will be approved unless the chief executive officer determines that the application is complete and that information sufficient to make an informed decision on the application has been received.

G. In reviewing each application, the chief executive officer will consider the following, as applicable:

1. The extent to which the borrower demonstrates immediate need for the loan.

2. The economic feasibility of the business endeavor as evidenced by the borrower's present and past financial situation and business experience and the general reasonableness of the business proposal and financial projections for the future.

3. Whether the borrower and any guarantors have satisfactory credit histories.

4. Whether the borrower has sufficient capital and other resources to conduct the business as planned, and the amount and source of equity contributed.

5. The adequacy of the security offered for the loan.

6. The extent to which the risk of financial loss is shared by others.

7. The viability of the industry of which the enterprise is a part and the contribution of the enterprise to that industry.

8. The impact of the business on the borrower and the community, including the extent to which the business contributes to local economic development, market development and employment opportunities.

9. The vulnerability of the business to future natural disasters.

H. All applications must be received in substantially complete form on or before June 30, 1987.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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