September 2009 Archive

Items of interest for the September 29 edition:

New FAME Web Site

2009 Financial Aid Tool Kit available

Online database transitions to EPIC

D.C. Update

GOAL$: Financial aid nights begin 

FAME is pleased to introduce our newly re-designed Web site.  This grant-funded initiative represents our commitment to providing Maine citizens with easy-to-find information and resources.  This is only the first stage of our re-design, however, as we also will be including new functionality and features during the coming months.  Please share comments or suggestions at info@famemaine.com.

Governor John E. Baldacci issued a proclamation today naming September 2009 as College Savings Month in Maine.  The Governor spoke at a brief ceremony marking the 10th anniversary of Maine’s college savings plan, the NextGen College Investing Plan.®  Launched a decade ago, NextGen is the fifth-largest college savings plan in the nation, with more than $4.4 billion in assets.

“September is back to school and it is also time to take action on college savings,” Baldacci said.  “With NextGen firmly established and ever-evolving over the past 10 years, our citizens have the best opportunity and a firm foundation to help pay for a college education.  Being able to save for college tuition now can be a big help later in life.”

The Governor presented the proclamation to Beth Bordowitz, CEO of the Finance Authority of Maine, during a ceremony at the State House.  Also in attendance was Tammy and Christopher Creswell, NextGen account owners who live in St. Albans.  The Creswell’s two children for whom the college savings accounts were opened also attended the ceremony.

NextGen was created by the Maine Legislature in 1999 as a qualified tuition program, and is designed to help families prepare for higher education expenses.

“NextGen is a successful program that has become even more vital as college tuitions rise,” said Bordowitz.  “FAME is proud to play a role in helping so many Maine students reach their college dreams.”

NextGen is a Section 529 plan administered by FAME, with Merrill Lynch as the program manager.  NextGen's earnings are state and federal income-tax-deferred, and are tax-free so long as the withdrawals are used for qualified higher education expenses.

Governor Baldacci noted that among other NextGen benefits to residents, the Harold Alfond College Challenge enables Mainers to easily augment their savings for their children’s education.  This first-in-the-nation program provides a $500 grant for every Maine newborn to start a NextGen savings account for future college expenses.  There are no income limits to participate in the program.

Other NextGen benefits for Mainers currently include:
• A one-time $200 initial matching grant to help Maine families with adjusted gross incomes of $75,000 or less open their NextGen account;
• Up to $250 per year, per beneficiary, tax deduction for Maine taxpayers who make contributions to a NextGen plan;
• Waiver of the annual account maintenance fee;
• Direct deposit available for Maine income tax refunds;
• For Maine workers, Life-long Learning Accounts that provide employer-matched individual NextGen accounts to help employees upgrade their skills and education while meeting the demands of businesses for a skilled workforce; and
• Annual need based scholarships for qualifying Maine students.

The Finance Authority of Maine (FAME) announced that recent improvements to its Regional Economic Development Revolving Loan Program (REDLP) will take effect September 14, 2009.  The modifications result from enactment last spring by the Legislature and Governor John E. Baldacci of Public Law 2009, Chapter 131, An Act to Modify the Regional Economic Development Revolving Loan Program.

REDLP, created by the Legislature in 1993, is designed to make loans through Maine’s regional economic development agencies for the purpose of creating or retaining jobs.  FAME makes disbursements to regional economic development agencies and the agencies, in turn, make loans to eligible borrowers.

“FAME is pleased to offer an enhanced REDLP to better meet the needs of Maine’s regional economic development agencies and the businesses they serve,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME is committed to partnering with these local agencies and supporting Maine’s small businesses in this challenging economy.”

The new law has two components.  The first is geared toward meeting the credit needs of businesses in this challenging economy.  Through June 30, 2010, participating regional agencies will be able to make loans to almost any eligible Maine business, regardless of size or sector, with certain limited exceptions.  Commencing July 1, 2010, the program will revert back to its original purposes, with modifications to update the program.

The changes include:  increased maximum fund disbursements to regional economic development agencies; amended financing terms and conditions; expanded eligibility for projects, especially Maine’s targeted cluster industries such as composites, energy, and marine and biotechnology; and expanded business eligibility for program funds. 

The program enhancements, which won broad support in the Legislature, result from the combined input of various Maine regional economic development agencies.

“These sensible, no-cost changes to REDLP are ways by which FAME, in partnership with regional economic development agencies, is addressing the capital needs of Maine’s small businesses during these challenging economic times,” stated Will Armitage, Executive Director of Biddeford-Saco Area Economic Development Corporation, which participates in the program.

From 1996 through 2007, REDLP provided 535 loans totaling $27 million.  These loans in turn leveraged an additional $218.1 million in investments and created and retained a total of 9,104 Maine jobs.  Interested parties should contact their regional agency for information and applications regarding REDLP.