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Small Business Loans in Maine (2021 Update)
While Maine may only have 150,000 small businesses state-wide, the growth of entrepreneurship is on the rise. Most of these businesses run on the backs of owners who have no staff or employees. Taking out a loan is often essential for these companies to get off the ground and survive. Small business loans are specific to the needs of entrepreneurs, giving them much-needed cash that is put into their company's assets.
Taking Out a Loan
To take out a loan, you'll need a reputable bank that offers competitive rates. Interest rates vary from roughly 5 percent to 8.5 percent. Variable rates are available to those who don't want to get locked into a higher rate agreement. Variable rates change depending on the market and current loan components. You should have a clear goal for the loan before taking one out. Know where that money will be spent and avoid using the cash on frivolous expenditures. This prevents the loan money from being irresponsibly used so that it is prioritized for business-related disbursement.
Banks in Maine That Offer Small Business Loans
Check out these highly-rated banking institutions for your small business loan:
The Bank of Maine
Founded in Portland in 1834, The Bank of Maine is the oldest banking institution in the state. However, that streak ended when it was acquired by Camden National Bank in 2015.
Katahdin Trust Company
Katahdin Trust Company opened in Patten on 7 March 1918 as a response to the massive disregard of large banks to the needs of families and business owners in smaller communities.
Camden National Bank
Camden National Bank is a Maine-based business whose roots are deeply embedded in the state. Aside from providing financial services in the area, it is also heavily invested in supporting local communities.
Franklin Savings Bank
Founded in Farmington on November 1868, Franklin Savings Bank aided the people of Franklin County to save and to earn in interests from their savings. It remains a savings bank, but it is also rated as one of the best banks for small business loans.
Machias Savings Bank
One of the most firmly established community banks in Maine, Machias Savings Bank has been around since 1869 and has remained true to its small-town roots even today.
Sanford Institution for Savings
Sanford Institution for Savings was founded in 1933 in Sanford. Thanks to the constant growth of its total assets, it can accommodate anyone – from individuals to big businesses.
Requirements for Application
During the business loan application process, you'll need to give company documentation to the lender to improve your chances of being approved. Banks want to know that you're running a business that has a chance of succeeding. They may deny loans to high-risk or niche market companies that don't have much chance of bringing in substantial revenue. Essentially, your lender wants to know that you'll have enough money to pay back the loan. If they think that your business will fail over time, they may not consider you a responsible borrower. Business owners' credit scores may also be considered during the application process.
Lenders will look at losses, expenditures, bills, revenue and client sales before approving your case. For businesses with delinquencies on their report, these will most definitely be seen by lenders and banks. Business loans can take up to two months to be fully approved and the money you've requested will be deposited into the bank account you've chosen.
What to Expect with a Business Loan
Once you receive your money, you'll be required to pay back the loan in the form of monthly installments. Some find it easier to have automatic payments deducted from their bank accounts so they don't have to remember to pay another bill. If the loan should ever become a financial burden to you, you can refinance or consolidate the amount to create smaller payments. Don't expect the loan to be your only lifeline out of a failing business, since you'll still have to pay back the loan with interest attached. Business loans are a beneficial way to get a lump sum of cash, but they shouldn't be used to save a suffering company.
Top Cities in Maine and Their Lenders
Maine is one of the northernmost states in the country – the area is well-known for its scenic and rugged coastline. Like much of the Northeast, Maine is known for being extremely affluent – the standard of living in the state is exceptionally high. While Maine is a popular tourist destination and has plenty of full-time residents, the state is one of the least populated in the country. For this reason, you won’t have many major cities to choose from if you do decide to start a business in Maine.
Regardless, the largest cities in Maine do have adequate infrastructure to support a growing business. In this section of the article, we’re going to take a deeper look at the top cities in Maine and what type of local small business lender they have.
As the largest city in Maine, Portland is the economic hub of the region. It has the largest port in the state, and therefore plays a major role in the region’s manufacturing and transportation industries. If you want to start a business in a bustling area of the state, Portland is your place to go. Below are the top lenders for small businesses in Portland:
CEI is a business lender in Portland that has been helping local companies since 1979. They’re a great choice if you want a lender who fully understands the Portland economy. They provide custom small business loans to their clients.
Evergreen Credit Union
Evergreen Credit Union is a mid-sized lender with a large client base in Portland. They provide traditional business loans, as well as SBA loans. They’re another great partner if you want someone with local experience.
Lewiston, Main is another economic hub in the state. Manufacturing and healthcare play a major role in the local economy. Lewiston is also known for being a much cheaper place to live than Portland. Below are Lewiston’s top small business lenders:
Androscoggin Bank is a large lender in the Northeast region that happens to have a significant client base in Lewiston. They provide real estate loans, credit lines, traditional term loans, and custom business loans.
Maine Family Federal Credit Union
Maine Family Federal Credit Union is a Maine-based credit union that has business lending customers throughout the state. They also provide other financial services if you’re in need. They’re a good option for people who want a single source of financing services. They have a range of different business loans and lending product available.
Bangor is home to the University of Maine. There are plenty of small businesses in the area that cater to the college in the town. If you want to open a business in Bangor, you should use the small business lender below:
Bangor Savings Bank
Bangor Savings Bank is our favorite lender in Maine. They have been working to help small businesses in the Bangor region for decades. They also know how to help you get the business banking solutions you need. Bangor Bank also has a fairly large lending capacity. They have been known to lend Bangor businesses up to $20m in capital.
Biddeford is considered the retail capital of Maine. There has been a lot of investment in the area in recent times. If you’re considering started a retail business, this is the place to be. Biddeford’s top business lender is provided below:
Biddeford Savings Bank
Biddeford may be a small city, but they happen to have a great local partner for business lending. If you’re worried about finding a local lender in Biddeford that understands the city’s economy, you should make sure to work with Biddeford Savings Bank. They have the experience and expertise you need to take your business to the next level. They also offer small business and personal banking for those who want full-service banking and financing solutions!
Augusta is not close to being the largest city in Maine, but it is the capital of the state. This makes it a prime location for many government jobs and retail businesses. If you’re thinking that Augusta might be a good place for you to start a business, consider the lender below for your small business financing:
cPort Credit Union
cPort Credit Union is a mid-sized credit union that has a physical presence in Augusta. If you’re in the state’s capital and need access to affordable financing for your business, cPort Credit Union is definitely one of your best options. We highly recommend you work with this lender if you’re in the area. They provide equipment loans, commercial property loans, and business lines of credit. They can even help you refinance your current business loans to make them more affordable for your business. They have a full understanding of Augusta’s economy.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don't worry as there still may be other alternative lenders willing to work with you.