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Maine
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Guaranteed Community Facility Program

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HOW TO APPLY:

You must contact a lender to apply and will be provided information on lending policies. Click here to contact an area office. Basic information can be provided over the telephone.

ELIGIBLE APPLICANTS:

Towns and Cities

Counties

Indian Tribes

Not-for-Profit Corporations

Quasi-municipal Districts

Applicants must be unable to obtain the necessary credit without the guarantee.

AREAS SERVED:

Essential Community Facilities

  1. 20,000 or less population
  2. Ineligible Areas
    1. Auburn, Bangor, Brunswick, Lewiston, Portland, Sanford, South Portland

LOAN PURPOSES:

Land or Equipment Purchase

Construction

Contingency

Legal, Administrative, Architectural, Engineering fees

Interest on interim financing

Refinancing - as long as it is a minor part of the loan

RATES AND TERMS:

Negotiated between the lender and the borrower

Terms up to 40 years or useful life of security

Either fixed or variable rates, not both

  1.    Rate cannot increase more than 1% per year, or 5% over the life of the loan

1% maximum servicing fee on guaranteed loan

May use other funds to leverage, including Rural Development Direct Loan

Payment of interest upon interest is not allowed

MAXIMUM GUARANTEE:

80% General rule

Guaranteed portion is saleable on secondary market

Bank must hold at least 5% of the loan

Fee 1% of guarantee portion paid to Rural Development at closing

Bank must be unwilling to make loan without guarantee

Personal guarantees are not required

SECURITY:

All security must secure the entire loan

  1. General Obligation Bonds
  2. Revenue Bonds
  3. Real Estate Mortgages
  4. Assignment of Income
  5. Financing Statement

TYPICAL TYPES OF PROJECTS:

Schools, other than state- funded facilities

Hospitals and Clinics

Nursing Homes

Group and Waiver Homes/Assisted Living Facilities

 

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 Click here to obtain more information on our guaranteed community facilities program, or to request an application.

 If you would like to review USDA Regulations, Procedures, Notices, RD Forms, or RD Handbooks, Click Here.

 

Return to Community Facilities.

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