AUGUSTA – Gov. John Baldacci and Finance Authority of Maine officials on Friday announced a plan to assist businesses directly affected by the shutdown of Great Northern Paper Inc.
The Katahdin Loan Insurance Program, available for companies within 20 miles of Millinocket or East Millinocket and-or businesses that provide services or supplies to Great Northern Paper, is leveraged insurance allowing a six-month principal and interest payment moratorium.
The program offers a $50,000 loan insurance limit per extended business entity on secured loans only. There will be no rate increase during the moratorium, and the ceiling rate for insured loans may not exceed 10 percent. Lenders must provide a minimum moratorium period of six months. The insurance is limited to a maximum of 25 percent of the loan.
Applications may be submitted immediately and must be received no later than the close of business on April 30. They will be considered first-come, first-served until the $1 million program ceiling is reached.
Applications and additional information about the program are available from FAME at (800) 228-3734 or on the Web at www.famemaine.com.