April 2008 Archive

The Board of Directors of the Finance Authority of Maine (FAME) today approved loans and loan insurance to assist a variety of Maine businesses.  The businesses include Architectural Glazing Technologies of Waterboro, a manufacturer of aluminum-framed skylights and curtain wall systems; Morin Brick Company of Auburn, a clay brick manufacturer; Curran Company, Inc. (formerly known as Curran Bean Sprout Co.) of Saco, a vegetable processing company; and Maine Woods Company, LLC, of Portage, which operates a hardwood saw mill and dry kilns.  A total of 275 Maine jobs will be created or preserved as a result of FAME’s actions.

"During these challenging economic times, FAME is pleased to partner with Maine lending institutions and businesses in order to strengthen the economy and grow and preserve Maine jobs,” stated FAME Board Chair Joyce Maker.

The Board approved a $600,000 Economic Recovery Loan for Architectural Glazing Technologies.  The loan approved will allow the company to make the best use of its expanded ability to provide glass curtain walls for large new construction and retrofit projects, using its state-of-the-art manufacturing process.   

The Board also agreed to provide Commercial Loan Insurance totaling $3,302,500 for Maine Bank & Trust for the financing of Morin Brick Company.  The company uses clay mined from its own land to make bricks used in commercial and residential development.  The loan will allow Morin Brick to put to use recently installed equipment upgrades to modernize a one- hundred-year-old manufacturing process.

Curran Company, Inc. was approved for both a $218,000 Economic Recovery Loan and Commercial Loan Insurance on a loan from Androscoggin Savings Bank.  The company prepares and re-processes vegetables sourced from across the United States.  This financing will enable the company to maintain its 58 employees engaged in processing vegetables for well-known companies such as Green Giant.

Finally, the Board voted to approve a $500,000 Economic Recovery Loan for Maine Woods Company.  The company is heavily dependent on the construction industry, which, like many other industries, is facing global economic challenges.  This loan will provide a bridge to recovery for the company.  “This assistance will allow our company to prevail over the current national slow-down in the construction industry,” stated Seven Islands Land Company President John McNulty.  “We are grateful to FAME for its assistance.”  Seven Islands Land Company, which manages over 850,000 acres of land in Maine, owns part of Maine Woods Company.

"FAME’s actions today in helping to preserve and grow approximately 275 Maine jobs is consistent with its mission of making business and education work for Maine,” stated Beth Bordowitz, Acting CEO of FAME.  “We wish these businesses continued success in these challenging economic times.”

In an effort to enhance the online experience of students, schools and counselors in Maine, FAME has redesigned and expanded the education portion of our web site. Most notable in this web site redesign is the creation of a new section titled “For Student Loan Borrowers.” This section was developed to provide comprehensive loan repayment information to borrowers, including a variety of calculators and information on how to avoid default. Financial Aid Administrators, Guidance Counselors and Advisors will notice that we have expanded the site to include information regarding our GOAL$ program.

The Board of Directors of the Finance Authority of Maine (FAME) recently approved interest rate reductions to help Maine businesses prevail over current economic challenges, especially increased energy costs.  One of the changes results from an enhanced partnership between the Maine Public Utilities Commission (PUC) and FAME to make energy conservation funds more available to Maine businesses.

Governor John E. Baldacci announced the changes at today’s Governor’s Energy Efficiency Summit, “Strengthening Business Through Energy Efficiency,” held at the Augusta Civic Center.  The summit, involving more than 550 Maine business and environmental leaders, explored the potential for aggressive energy efficiency investments to improve Maine’s economy.  Representatives from the Governor’s office, FAME, the PUC, the U.S. Environmental Protection Agency, and others participated in the day-long event.

In view of the current economic downturn both nationally and in Maine, including increased energy costs to Maine businesses, the FAME Board found on February 21, 2008 that substantial public benefit will result from the coordination of the Energy Conservation Loan Program, which is co-administered by the PUC and FAME, and dedicated funds set aside for energy conservation projects within the Economic Recovery Loan Program, which is administered by FAME.

Effective February 21, 2008, $1,000,000 of funds will be made available for energy conservation loans to provide additional funding for businesses to improve energy efficiency.  The Energy Conservation Loan Program has a maximum loan amount of $35,000.  The PUC will continue to fund all loans that meet the program’s current underwriting standards, which include applicants with fewer than 50 employees and less than $5,000,000 in sales.

The Energy Conservation Loan Program has made over $1 million in loans since its creation in 1997.  One success story involves L&D Trucking of Aroostook County.  A loan by this program helped the company purchase an auxiliary power unit for a truck.  The unit saves the company enough in energy costs to allow it to make regular loan payments and to re-invest in the business. 

FAME and the PUC recognize, however, that additional funds may be needed by businesses to fund larger projects that otherwise could not be pursued under the former loan limit.  With the changes, FAME will fund 90% of a total project, up to a maximum of $250,000, at a fixed interest rate of 3% for those projects that are in need of loans in excess of $35,000.  Loan terms cannot exceed five years, with a maximum fifteen-year amortization period.

Additionally, effective February 21, 2008 through June 30, 2008, the interest rate on all new Economic Recovery Loan Program loans will be reduced from Prime + 2% to Prime, which currently is set at 5.25%.  The loans in this program provide subordinate (gap) financing to assist businesses in their efforts to remain viable and/or improve productivity. 

FAME’s Economic Recovery Loan Program has made over $41.7 million in loans since being created by the Legislature in 1992.  An example of the program’s success is WahlcoMetroflex, Inc. of Lewiston.  The company, a world-leading designer and manufacturer, leveraged the program to remain Maine-based and to expand sales and increase its highly skilled workforce.

"During these challenging economic times, especially with energy costs skyrocketing, FAME  believes it’s important to modify these two programs so that Maine businesses and people may benefit immediately,” stated FAME Board Chair Joyce Maker.

"This program has already loaned almost a million dollars to Maine businesses for energy efficiency projects,” said Kurt Adams, Chairman of the Maine Public Utilities Commission. “Efficiency investment saves money and helps create jobs.  FAME is really stepping up to the plate with this significant increase in the maximum loan.”

FAME has been collaborating in recent months with the PUC, the Governor’s Office of Energy Independence, the Department of Economic and Community Development, legislators, and others on matters related to energy conservation.  With these stakeholders, FAME has been exploring alternative methods of financing for businesses, fishermen, loggers, and others to utilize non fossil-fuel based technologies to reduce costs and increase productivity. 

"FAME stands shoulder-to-shoulder with Maine businesses and people as they weather difficult economic hardships and an especially stormy Maine winter.  Improving these two programs hopefully will assist Mainers to prosper in the face of adversity,” stated Beth Bordowitz, Acting CEO of FAME.