Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 326 - COMPLIANCE ASSISTANCE LOAN PROGRAM
Section 457-326-3 - Eligibility

Universal Citation: 94 ME Code Rules ยง 457-326-3

Current through 2024-38, September 18, 2024

A. To be eligible for financial assistance under the program, a borrower must demonstrate at least one of the following:

1. The borrower is the owner or operator of an existing underground oil storage facility or underground tank which a) is located on premises which are not used solely for residential, including rental residential, purposes; and b) is leaking or has been identified by the MDEP as posing an environmental threat, or removal is required by applicable law or rule;

2. The borrower is required by applicable law or regulation to install equipment related to air quality improvement in association with a project described in subsections 1, 3, or 4 of this section 3(A);

3. The borrower is constructing, replacing or renovating an aboveground tank or an aboveground facility and the work is being supervised by a State registered professional engineer or State certified tank installer with training and experience in aboveground oil storage facility installation; or

4. The borrower is renovating an underground oil storage tank or facility, and the work is supervised by an underground oil storage tank installer certified by the Maine Board of Underground Storage Tank Installers and the estimated cost of the work is greater than $1,000.

Notwithstanding anything herein to the contrary, owners or operators of 15 or more gasoline service stations are not eligible for financial assistance under the program.

B. To be eligible for financial assistance under the program, a borrower must demonstrate each of the following:

1) Financial need for the assistance.

2) A reasonable likelihood that the borrower will be able to repay the loan.

3) Any financial assistance will be used only for a project.

C. A borrower shall be eligible for a loan in accordance with the following criteria:

1) Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan with interest of 6% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.0 or greater, but less than 1.2. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 1%.

2) Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan with interest of 4% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.2 or greater, but less than 1.5. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 2%.

3) Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan with interest at 2% below the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letter if the borrower's debt service coverage is 1.5 or greater, but less than 2.5. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 3%.

4) Subject to the limitations of subsection 3(C)(5), a borrower shall be eligible for a loan at the high prime rate of interest as published by the Wall Street Journal on the date of the commitment letterif the borrower's debt service coverage is 2.5 or greater, but less than 3.0. In no event shall a loan to any borrower made under this subsection be at an interest rate less than 3.5%.

5) A borrower with debt service coverage of 3.0 or greater or net worth of $750,000 or greater shall not be eligible for assistance under the program, unless the borrower can demonstrate financial need to the satisfaction of the Authority.

D. A borrower may obtain a loan for a project that has already been completed if the borrower provides satisfactory evidence of compliance with each of the following:

1) The project was completed no later than nine months previous to the date the complete application is received by the Authority.

2) The loan is made to the same individual or entity, who owned or operated the project at the time the project was undertaken.

3) The loan will assist in maintaining a compliant and viable business.

4) Terms shall be set in accordance with section 3(C) hereof.

5) Notwithstanding anything herein to the contrary, projects financed on or after April 1, 2016 pursuant to the Authority's Economic Recovery Program as described in Chapter 311 of the Authority's rules, as amended from time to time, may be considered for refinancing under this program, if an application is made within three months of the effective date of this rule.

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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