Linked Investment Program for Agriculture
This program reduces a borrower's interest rate. Loans are approved and funded by lenders according to their own policies. The Maine State Treasurer will make a deposit in the form of a Certificate of Deposit (CD) with the originating lender at up to 2% less than prevailing rate, provided similiar discount is applied to the interest rate on the lender's loan to the business.
Eligibility
- Principal source of income must derive from producing crops or raising livestock.
- Must be applied to an agricultural operating loan (specifically for the purchase of seed, feed, fertilizer, chemicals, veterinary services, labor, production-related energy and/or other production), and not loans for capital projects.
Loan Amount / Exposure
Maximum CD investment of $200,000 (actual loan may be greater).
Interest Rate
Up to 2% interest rate savings to borrower.
Loan Term
- CD investment made for maximum of one year (loan term may be greater).
- Participation limited to two years (additional two years available in limited cases).
Security
Collateral requirements are at the lender's discretion. The Treasurer's CD investment is not pledged as collateral for the loan.
Fees
$100 reservation fee (half may be refunded in limited cases).
Process
Contact FAME for reservation application (due by April 30 of each year).
Additional Information
Loans are approved and made by lenders according to their own policies. Loan does not need to insured by FAME.
Contact
207-623-3263
1-800-228-3734
FAX: 207-623-0095
TTY: 207-626-2717