FAME Loan Guarantee Program for COVID-19 Borrowers

ME BFI News & Notices

Published March 20th, 2020

Detected March 18th, 2026

Summary

The Maine Bureau of Financial Institutions announced a new FAME Loan Guarantee Program to assist borrowers affected by COVID-19. Maine banks and credit unions can participate in offering consumer loans up to $5,000 and partner with the SBA for business loans.

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What changed

Superintendent Lloyd LaFountain of the Maine Bureau of Financial Institutions has notified financial institutions of a new COVID-19 Relief Consumer Loan Program administered by the Finance Authority of Maine (FAME). This program, established by recent emergency legislation, allows Maine banks and credit unions to offer no-to low-interest consumer loans of up to $5,000, with a limit of three loans per borrower over 30-day periods. FAME is also partnering with the SBA to provide loan products to Maine businesses experiencing COVID-19 related hardships.

Financial institutions are encouraged to evaluate these new programs to assist consumers and businesses. The announcement directs lenders to a release from FAME for more detailed information regarding the program specifics and eligibility criteria. While no explicit compliance deadline is stated, the program is designed to address immediate COVID-19 impacts.

What to do next

Review FAME's COVID-19 Relief Consumer Loan Program details.
Evaluate participation in the FAME/SBA loan guarantee programs.
Assess eligibility criteria for affected consumers and businesses.

Source document (simplified)

Superintendent LaFountain notifies financial institutions of new FAME Loan Guarantee Program for borrowers affected by COVID-19

Mar 20, 2020

GARDINER – Superintendent Lloyd LaFountain of the Maine Bureau of Financial Institutions announced today that Maine’s banks and credit unions may participate in a new lending program administered by the Finance Authority of Maine (FAME) aimed at providing assistance to eligible borrowers affected by COVID-19.

The Loan Guarantee Program was established by the Legislature in recently enacted emergency legislation related to COVID-19. The legislation included a new consumer loan guarantee program, the COVID-19 Relief Consumer Loan Program, which is administered by FAME in partnership with Maine financial institutions. It will provide a limited number of no-to low-interest consumer loans through a loan guarantee program involving Maine’s banks, credit unions, and FAME. Loans of up to $5,000 (minus any unemployment benefits received by borrower) may be available and up to three loans to any one borrower can be applied for, one per each 30-day period.

In addition, FAME has partnered with the United States Small Business Administration (SBA) to offer different loan products to Maine based business who have experienced interruption or hardship due to COVID-19. The superintendent encourages lenders to evaluate the new programs as they endeavor to help Maine’s consumers and businesses.

For more information, please read the release from FAME (3/19/2020).