Loan Programs

Flexible Financing Options for Businesses

We oversee various gap-financing microloan programs for qualifying businesses. Whether you’re starting a brand new venture or expanding your current business, we have loan programs that will fit your individual needs.

Which loan program fits your needs?

The Sunrise Loan Fund (SLF) was set up by Sunrise County Economic Council (SCEC) with help from a variety of sources.  These sources include the U.S. Department of Agriculture Rural Development, Finance Authority of Maine, private foundations and others. We have several loan products and manage loan programs for other organizations. SCEC makes sure all regulations are met for all loan products.  All loan products are intended to provide gap-financing to Washington County businesses with an emphasis on job creation or retention.  

Generally, a business plan is required.  But if you have never written one, and don’t know where to start, help is available!  Visit our business resources page for help. You can also give us a call at 207-255-0983 and we will set up an appointment with the Loan Officer.

The Sunrise AG Microloan fund (SAM) is a loan program set up by Sunrise County Economic Council (SCEC) through the generosity of an anonymous donor. SAM is for Washington County-based commercial small farms and food producers who need capital, as well as our county’s farmers’ markets, buying clubs, retail businesses, and food pantries. These microloans help our local foods businesses grow and thrive.  They protect and create jobs and help increase the amount of locally grown food.

Loan amounts range from $500 to $20,000. The microloans are for clients who may not be able to get a loan from other lenders.  The microloans may also be used as part of a larger loan package, in a gap financing role. SAM may act as the primary lender and provide up to 80% of the request with the client providing the remaining 20% from other sources. SAM can be used by first-time borrowers and clients with no credit history or poor credit history. These loans can provide opportunities that may not be available through other lenders.

Eligible Uses & Requirements:

Loan funds may be used for equipment, inventory, material, purchase/improvement; creation and/or expansion of value added-products/services; training and education, marketing assistance; energy efficiency improvements; and help with start-up capital.

Basic Loan Fund Requirements: The applicant must be a resident of Washington County; have ownership in a farm, agriculture or food-related business; creating or keeping a job(s). Loans will not be made for debt consolidation, general operating expenses, or existing debt.

Loan Terms and Conditions:  Loan terms and conditions will be decided by the Sunrise Loan Fund Committee, based on risk, collateral, character, and creditworthiness.  Loan processing fees range from 2%-3% of the total loan request.

Additional Business Support Resources: Assistance with business plans, loan applications, and marketing are available from the many resource providers who work with SCEC.  Many are free, and all are confidential. These resources can assist farmers and food producers in business training and education, leading to increased profitability, better business decisions and strategies for success.

The Down East Commercial Fisheries Fund (DECFF) was created by the Sunrise County Economic Council (SCEC) to invest in Washington County-based commercial fisheries and marine-related industries. The program was set up to help Washington County’s fishing industry. As with all Sunrise Loan Fund programs, DECFF provides gap financing to qualifying borrowers.

The loan fund offers two options.

The first option is for higher-risk clients looking for loans of up to $2,500.  These clients usually would not qualify to borrow from banks.  For these loans, DECFF acts as the primary lender and provides up to 80% of the loan request.  The client would provide the remaining 20% from other sources.  This option is for first-time borrowers and clients with a lack of a credit history or poor credit.  These loans provide opportunities that may not otherwise be available.

The second option covers loans ranging from $2,500 to $10,000. It is set up to assist existing businesses that need financial assistance to grow, expand, hire and sustain their operations. DECFF provides up to 50% of the loan request with the client providing the remaining 50% from other sources.

Eligible Uses & Requirements

DECFF funds may be used for boat and gear purchase/improvements; creation and/or expansion of value-added products/services; training and education; marketing assistance; energy/efficiency improvements; and assistance with start-up capital.

Loan fund requirements include but are not limited to: applicant must be a resident of coastal Washington County; have ownership in a commercial fisheries and/or marine-related business; creating or keeping a job(s); denial of other credit sources.

Loans will not be made for debt consolidation, general operating expenses, or existing debt.  Loans require some money from another source.

Loan terms and conditions will be decided by the Sunrise Loan Fund Committee, based on risk, collateral, character, and creditworthiness.

Washington County Government has a loan and grant program through the tax increment financing (TIF) district it established for the Unorganized Territories (UTs) in Washington County.  This is funded through deferred property taxes from the Stetson I & II wind-farms outside of Danforth.  A portion of the wind-farm property taxes are returned to Washington County each year.  These funds are to be used for economic development and job creation in the Unorganized Territories.

The TIF Program has a nature-based tourism fund, a revolving loan fund, an economic development planning fund, and a County match fund. Businesses, individuals and other organizations may apply for funding through these programs. Applications are reviewed by the SCEC Loan Committee and then referred to the County Commissioners for final approval.

Sunrise County Economic Council, as economic development agency for Washington County Government, administers the UT TIF Grant and Loan Programs. Please go to
http://www.washingtoncountymaine.com/index.php/business-economy/tax-increment-financing-tif-district  for more information, application forms and guidelines.

For a downloadable map of the UTs, please click here.

Frequently Asked Questions

Who reviews my application?

Down East Commercial Fisheries Fund & Sunrise Ag Microloan Fund: 
The SCEC Loan Officer processes, analyzes, and presents your loan application to the Sunrise Loan Fund Committee. The Loan Officer does NOT vote on your application.  The Loan Committee meets once a month.  A completed application packet includes the loan application, personal finance statement, credit report, income tax returns, business plans, etc.

Washington County UT TIF Loan:
When the Loan Committee meets once a month, they vote on a recommendation for the Washington County Commissioners to approve/deny the loan. The Commissioners meet once a month. A completed application packet includes the loan application, personal finance statement, credit report, income tax returns, business plans, etc.

How much money can I apply for?

This depends on how much money is in the loan fund at the time of the request.

Sunrise Ag Microloan Fund – The minimum loan is $500, and the maximum loan is $20,00

Down East Commercial Fisheries Fund – The minimum loan is $500, and the maximum loan is $10,000.

 

What are the interest rates and terms?

Down East Commercial Fisheries Fund & Sunrise Ag Microloan Fund: 
Interest rates and terms are decided by the SLF Loan Committee.  Interest rates are based on the Wall Street Journal Daily Prime Interest Rate, current interest rates, credit rating, credit risk, and other factors.  Most Sunrise Ag Microloans and Down East Commercial Fisheries Fund loans are 1% above the daily Prime Interest Rate.

Washington County UT TIF Loan:
Interest rates and terms are decided by the Washington County Commissioners.  Interest rates are based on the
Wall Street Journal Daily Prime Interest Rate, current interest rates, credit rating, credit risk, and other factors.  UT TIF Loans are 1.5% below the daily Prime Interest Rate.

Is collateral required?

All SLF loans must be secured by collateral. The SLF would like a first security position, but will take a second position on collateral depending on the loan request, the value of collateral offered, loan amount, credit history, credit risk, etc..

What other costs can I expect?

Like a bank, SLF has certain costs that must be passed on to its loan clients.

Documentation and processing fees range from 1% to 2%, depending on which loan product is used.

Other common costs are the credit report and State of Maine UCC fees. Other charges may include annual service fees, mortgage-filing fees, title insurance, attorney costs, etc.  The borrower is responsible for paying these costs which are due at the loan closing.  It is possible for these costs can be financed.

What is Secondary Lending and/or Gap Financing?

SLF funds are not intended to be used as the primary source of funding; they’re designed for gap financing.  SCEC is what is known as a Secondary Lender.

“Gap financing” covers the “gap” between what a lender will lend you and what you need to complete your business project. For example: If you secure 80%-90% of your project costs, the remaining 10%-20% is considered gap financing. It is not uncommon to see more than two participating lenders in larger loans.

By law, SCEC loans cannot compete with the banks and other financial institutions. They are intended to complement existing resources.

To Apply

Please download our Application and Personal Financial Statement.

Drop Off Your Application

The  Machias office
7 Ames Way, Machias
The Calais office
Washington County Community College, 1 College Drive

 

Mail Us Your Application

Attn Loan Officer
Sunrise County Economic Council
7 Ames Way
Machias, ME 04654

 

FOR YOUR SECURITY PLEASE DO NOT EMAIL ANY LOAN RELATED DOCUMENTS!

SCEC is an equal opportunity lender.

Loan Committee Members

Sean Daye

Machias Savings Bank
PO Box 318
Machias, ME 04654

Blaine Jones

Camden National Bank
66 Main Street
Ellsworth, ME 04605

Shirley Erickson

Maine Educational Loan Authority
248 Yoho Head Road
Machiasport, ME 04655

Joe Perkins

Washington Hancock Community Agency
PO Box 299
Ellsworth, ME  04605

Charles J. Rudelitch

Sunrise County Economic Council
7 Ames Way
Machias, ME 04654

Betsy Fitzgerald

Washington County Manager
PO Box 297
Machias, ME 04654

Susan Hatton

Susan Hatton

Program Manager

Contact me for all of your loan questions!
207-255-0983