The Compliance Assistance Loan Program is intended to help businesses finance the renovation, removal, disposal or replacement of all or any part of certain oil storage facilities or tanks and certain air quality improvement equipment, in conjunction with the Maine Municipal Bond Bank and the Maine Department of Environmental Protection.
About the Compliance Assistance Loan Program
Eligibility
- Projects include a) renovation, removal, disposal or replacement of all or any part of an eligible underground oil storage facility or tank, or b) the construction (in connection with replacement), replacement or renovation of an aboveground tank or aboveground facility, or c) the installation of equipment related to the improvement of air quality in association with a project. A project may include the costs associated with replacement or repair of a fire-suppression system or any portion thereof that has been damaged during the course of other work associated with the project.
- Net worth may not be greater than $750,000.
- Debt service coverage may not be greater than 3:1.
- Propane facilities are excluded.
- Units of local government are not eligible as borrowers.
- Owners of 15 or more gas stations are not eligible as borrowers.
Loan Amount/Exposure
Up to $400,000
Interest Rate
Fixed, between 1% and current Prime, based on debt service coverage ratio.
Loan Term
Up to 15 years
Security
Business and personal assets
Fees
Loan origination fee: 1.5% (1% at origination and 0.5% payable over the first year of the loan)
Annual loan administration fee: 0.75% of outstanding principal balance (payable over the second year and subsequent years)
Closing costs, but not origination or administration fees, may be financed.
How to Apply
Submit a complete application to FAME. FAME will underwrite the request and make a final decision. The Maine Department of Environmental Protection will certify eligibility to FAME.
Application Downloads
Save and print your completed forms, then mail to FAME.
