Northeast Bank commits $10M to small business lending
Northeast Bank announced on Monday its commitment to make available up to $10 million for qualified small business loans throughout Maine. The program, which will be offered in conjunction with the U.S. Small Business Administration, targets new and existing small businesses in Maine that are looking to grow or expand their operations.
The new loan pool is available to qualified small business owners immediately, and includes both micro loans for startup companies as well as larger loans to businesses looking to expand or re-tool their operations.
Marcel Blais, Northeast Bank’s COO, said the $10 million commitment represents a tripling of the bank’s average funding of small business loans during the past three years.
“The mood in the market is much more positive in terms of businesses’ willingness to expand,” Blais told Mainebiz. “As a bank, we want to be a good lender. It’s time for us to step back in and let people know we’re back out there [with money to lend].”
Blais said Northeast Bank’s preferred lender status with the SBA enables it to offer faster turnaround times on some types of business loans guaranteed by the federal agency, including Express 7(a) loans up to $350,000 in which the response to an application will be given within 36 hours.
Seth Goodall, who stepped down earlier this summer as Maine Senate majority leader to become administrator of the SBA’s Northeast regional office, said SBA’s lending throughout Maine has grown approximately 28% in FY 2013. With only a month left in the fiscal year, Goodall said SBA-backed loans in Maine total almost $79 million.
“It’s a very positive sign that businesses are beginning to grow,” he told Mainebiz.
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