South Portland Loan Program

COVID-19 Rapid Response Microloan Program Summary  

Program Purpose: To provide financial assistance to South Portland-based businesses most impacted by COVID-19, which are in danger of closing, have laid-off workers, or have had to close temporarily.  Funds available are not intended to substitute for available COVID-19 federal and/or state commercial funding if a business is able to access one or both.  Interested business owners are encouraged to explore additional emergency funding available through the Greater Portland Council of Governments (GPCOG).  

Program Guiding Principles: 

  • Get working capital moving as quickly as possible 
  • Assist businesses as necessary to cushion effects of the pandemic 
  • Make application and participation as simple and easy as possible 
  • Leverage multiple funding sources to maximize impact 

Program Funds:  

Funds that have been appropriated and are available in the City of South Portland Business Development Revolving Loan Fund (balance of $59,172 as of July 1, 2020) 

Uses of Loan Funds: 

  • Eligible Funding Activities
  • Working capital expenses (e.g., rent, utilities, inventory, payroll, insurance) 
  • Business Consulting Services (e.g., accounting, marketing, software, legal assistance) 

Ineligible Funding Activities:

  • Refinancing existing debt
  • Down payments toward other financing 
  • Loan Costs:  
  • Application Fee: None
  • Commitment Fee:  One-half of one percent of the loan amount 


Loan Size, Type, and Terms:

  • Loan Size:  
  • Minimum $5,000.00  
  • Maximum $10,000.00  

Loan Interest:

Interest Rate:  0% Interest for 24 months 

Loan Repayment:  

6 months of deferred payments, followed by 18 months of repayment  

Loan Terms:    

24 months 

Security of Approved Loans:

UCC-1 on all business assets regardless of lien position relative to other lien holders. 

Community Resilience:

  • All Loan Applicants that are approved for a City of South Portland COVID-19 Rapid Response Microloan shall be encouraged to participate in the Greater Portland Resilience Exchange (GPREx) through GPCOG. 
  • Evidence may include completion of the Resilience Exchange survey, participation in case study, event, or partnership produced by GPCOG. 


The Applicant’s business operates in the City of South Portland, and requested loan funds are for the benefit of the South Portland business location. 

The Applicant must demonstrate efforts to secure other available state and federal emergency assistance funds. 

Required Submittals: 

GPCOG/City of South Portland Rapid Response Microloan Program Application and business tax returns for 2018 and 2019 (if available). 

  • Balance sheet for 2019. 
  • Profit and Loss for 2019. 
  • Payroll from early February showing the number of full and part-time employees. 

Copies of correspondence relating to the application, approval/denial and funding status of any United States Small Business Administration (SBA)  Emergency Loan, Economic Injury Disaster Loan (EIDL) Program, Paycheck Protection Program (PPP), Finance Authority of Maine (FAME) - COVID-19 Relief Business Direct Loan Program, and/or other emergency business relief programs that the applicant has applied for or currently has outstanding. For applicants who have any existing and outstanding emergency business relief loans; please provide a schedule that includes the loan balance, monthly payments, and if any portion is forgivable and under what circumstances.  

Schedule and Process:

  • Expedited loan closing after complete loan application package is received by GPCOG staff. The Application Package must include: 
  • GPCOG/City of South Portland Rapid Response Microloan Program Application (apply online here)
  • Copies of the 2018 business Federal Income Tax Return 
  • Either a copy of the 2019 business Federal Income Tax Return or the 2019 management-prepared profit and loss statement and year-end balance sheet. 
  • The 2020 year-to-date management-prepared profit and loss statement and balance sheet. 
  • Any information, including an existing business plan, that will help the application review team better understand the business. 

Program Sunset:  

Program funds will be available until fully committed. 


Andrew Butcher – Director of Innovation & Resilience, Greater Portland Council of Governments (GPCOG):, 207-774-9891 

William Mann –Economic Development Director, City of South Portland:, 207-347-4125. 

  1. Vincent Edwards

    Administrative Assistant
    Phone: (260) 804-3173