Governor Mills Issues New Executive Order

April 22, 2020 |

On April 21, Governor Mills signed an Executive Order that modifies the FAME Consumer Loan Program created in response to the COVID-19 pandemic.

The League worked closely with FAME and the Governor’s Office on these modifications, which make the Consumer Loan Program more palatable for Maine credit unions. The Order makes the following changes:

  • Financial institution can use a borrower’s creditworthiness as a factor in determining loan eligibility.
  • Grace periods for repayment are extended from 180 days to 365 days.
  • The repayment period is extended to 1,825 days to be paid in 60 equal installed payments.
  • Financial institutions that have made a good faith effort to collect on a loan can  file a claim with FAME after the 1,825th day following the end of the grace period but no later than the 2,095th day following the end of the grace period.

The FAME-backed consumer loan is still intended to be the loan product of last resort to assist those struggling during these challenging economic times.

Participating credit unions must submit the member loan information to FAME. To learn more, please contact FAME or visit their website.