Archive Posts for 2010

Items of Interest for December 2010:

Financial Aid Nights

Timeline for Spring Semester Program Processing

State of Maine Grant 2011-2012 EFC Cut-Off

Items of interest for November 2010:

College Access Sub-Grants

Financial Literacy Council

Showcase Maine 2010

The Maine Red Claws, Portland Pirates and Portland Sea Dogs mascots came together today to announce their partnership with the NextGen 529 College Investing Plan. Collectively the teams will provide eleven $1,000 scholarships for Maine students. The assembly of these team mascots comes as the Red Claws and Pirates join the Sea Dogs in launching their own scholarships through the NextGen Plan.

With expenses rising every year, it’s more important than ever to start saving and investing early for college. These new scholarships will help bring the dream of attending college one step closer for Maine families. Placed in a NextGen 529 plan from the start, these scholarships will help the winners take their first steps on campus.

“With the cost of college going up every year, the power of these scholarships and the NextGen College Savings Program can't be underestimated,” said Geoff Iacuessa, the General Manager of the Portland Sea Dogs.

Each year the Sea Dogs receive thousands of essays from students across the state. “It is tough to pick just three winners but hopefully getting students and their families to think about college, through these essays, will not only inspire them to continue their education but will also get parents to look into the NextGen College Savings Program. We’re thankful for the Maine Red Claws and the Portland Pirates for joining us this year. By these teams stepping up and creating their own scholarship programs, more Maine students are getting the opportunity and incentive to further their education.”

The criteria for the scholarships are decided by each individual team. In conjunction with the NextGen Most Improved Student Program, the Portland Sea Dogs award $1,000 NextGen Field of Dreams Scholarships to three deserving students in each grade level: K-5, 6-8, and 9-12. Students are asked to respond to a topic selected by the Sea Dogs in an essay (for the older contestants) or submitting a picture (for the younger contestants). The winners are selected prior to the Sea Dogs’ NextGen Field of Dreams game and awarded the scholarship at the game.

The Portland Pirates will also award a $1,000 3-Stars Scholarship to three deserving students in each grade category: K-5, 6-8, and 9-12. Students will be asked to respond to a topic selected by the Pirates by submitting an essay (or a picture for the younger contestants). Winners are selected prior to the Portland Pirates’ final regular season game and awarded the scholarship during the game.

 “This is a terrific opportunity for the Portland Pirates to partner with NextGen in a scholarship program which will have meaningful financial impact on a young student’s future educational expenses,” said Pirates Managing Owner/CEO Brian Petrovek. “We are looking forward to seeing the quality work that will be submitted by prospective candidates and we will be encouraging all students to enter this exciting 3-Stars Scholarship Program.”

“Studies have shown that children with college funds are more likely to picture themselves going to college and that by 4th grade, children have already started to formulate an idea that they are or are not college material,” said Jon Jennings, Red Claws President and General Manager.

The Red Claws are asking schools to nominate 4th grade students in whom they see potential but perhaps that student doesn’t see it in themselves. “Our hope is that these scholarships will provide that spark that will make them think ‘I can go to college, too’ and will give their parents a way to help make that goal come true.”

NextGen helps families make the dream of attending college possible. Since its launch in 1999, the breadth of investment choices has increased from just one option, to now over 39 investment portfolios between the NextGen Client Direct and Select Series. There are many benefits that come from an investment in a NextGen plan, including potential tax savings, control and choice over your investment options, low investment minimums and plenty of flexibility in choices. Visit www.famemaine.com for more information on how to enroll.

The Board of Directors of the Finance Authority of Maine (FAME) held its annual meeting Tuesday, November 16, 2010, at Portland’s Holiday Inn By the Bay.  The Board elected officers, received a presentation from the Midcoast Regional Redevelopment Authority (MRRA), approved low-cost financing for a Maine company, and authorized rulemaking for some programs. 

Earlier in the day, FAME Board members and staff toured SIGCO, Inc., a Westbrook-based glass manufacturer that is expanding with the assistance of tax-exempt financing facilitated by FAME.

Re-elected as officers for 2011 are:  Glenn Lamarr of Fort Kent, Chair; Susan Snowden of Scarborough, Vice Chair; and Cheri Walker of Portland, Treasurer.  The same slate has served as officers since 2010.

The Board also received a presentation on the current activities of MRRA by Steve Levesque, executive director.  The Board further authorized rulemaking for the certificate of approval process for MRRA projects and modified the Maine Seed Capital Tax Credit Program to allow businesses opening on the former Brunswick Naval Air Station base enhanced benefits.

Approved for low-cost financing through the Recovery Zone Facility Bond Program was Priority Development Group Holdings, LLC, a commercial real estate development company based in Topsham.  The company was approved for bond allocations in an amount up to $26,000,000 to finance the development of several commercial properties in Sanford, Thomaston, Waterville, Richmond, Hollis and Winslow.  The bonds will be privately placed with one or more banks, and the project does not carry any liability or credit enhancement on the part of FAME or the state. 

“We are pleased to assist Priority Development Group Holdings in its efforts to move forward with a variety of new developments throughout the state.  This is good news in a challenging economic environment and will increase good-paying jobs in Maine,” stated FAME Board Chair Glenn Lamarr.

“Priority Development appreciates FAME’s timely support of our ‘shovel-ready’ development projects,” stated James Howard, president of the company.  “Our company and local communities will benefit from this low-cost financing, which will enable us to increase good paying jobs in various parts of the state.”

Following the regular board meeting, FAME held its annual dinner and awards program, “Showcase Maine.”  Approximately 285 leaders in government, business and higher education attended the event.  In addition to hosting a reception showcasing various Maine business and educational organizations, FAME presented a number of awards to Maine business and higher education leaders.  This year’s recipients included:

• CPM Constructors of Freeport (Business at Work for Maine Award), a general contracting company founded in 1985 that has expertise in a number of construction areas, including concrete, bridge renovation and replacement, site work, commercial building construction and renovation, street and road renovations and drainage upgrades, heavy construction work and the design/build process;

• The 2010 Financial Literacy for Maine Youth Summit Planning Committee (Education at Work for Maine Award), for its commitment to increased financial education and literacy for the people of Maine;

• Kennebunk Savings Bank (Financial Institution of the Year Award), which has worked closely with FAME to ensure that Maine’s small businesses can access the financing they need; and

• Hon. Justin Alfond (Dirigo Legislative Champion Award) of Portland, state senator and newly-elected assistant minority leader from Portland.  Sen. Alfond was co-chair of the 124th Maine Legislature’s Joint Standing Committee on Education and Cultural Affairs, and was recognized for his support of FAME’s mission, including increased access to higher education and business opportunities for all Maine people.
 
Following the awards presentation, Maine Olympic gold medalist Seth Wescott delivered the keynote speech.  Wescott, a two-time gold medalist in the snowboard cross event, co-owns “The Rack,” a restaurant near Sugarloaf.

The Finance Authority of Maine (FAME) recently notified eighteen Maine schools and non-profit education organizations that they have been chosen to receive sub-grants totaling $534,663 as part of the Maine College Access Challenge Grant administered by FAME.

The grants were awarded on a competitive basis to eligible Maine schools and non-profit organizations.  Successful proposals support the overall goal of increasing the number of Maine students who are prepared to enter and succeed in postsecondary education, with a focus on preparation, aspiration and success.  List of recipients.

Grant recipients range from Ashland High School in Aroostook County, which will provide all students and parents with free programming to increase career and postsecondary aspirations for all through a variety of courses, informational meetings, field trips, speakers and tutoring, to Syntiro’s Bridging the Gap Program, which will address the complex challenges faced by low-income students as they embark on their college journeys, to the University of Maine at Farmington’s Upward Bound Program, which will provide a comprehensive set of services designed to increase the number of low-income and first generation students prepared to enter and succeed in postsecondary education and increase their financial literacy.

In August, FAME was notified by the U.S. Department of Education that Maine had been awarded a $1.5 million College Access Challenge Grant for fiscal year 2011.  Available monies are to be used by states on efforts to increase college access and success among underserved student populations.

“FAME is pleased to announce these sub-grants for the MCACG Program,” stated Beth Bordowitz, Chief Executive Officer of FAME.  “These much-needed funds will help FAME and its partners throughout Maine strengthen our college access and financial education efforts to help Maine students and families achieve their postsecondary education goals.”
The FAME college access team includes veteran financial aid professionals who not only work with high schools but also coordinate with middle and elementary schools, as well as adult education centers, to reach students and parents.  The free services provided are available to all Maine citizens, regardless of income.

MCACG is part of a federal program designed to significantly increase the number of underrepresented students who enter and remain in postsecondary education.  To accomplish this purpose, MCACG will focus on three key components:  (1) college access and completion services and programs; (2) competitive grants to organizations providing college access and/or completion services or programs; and (3) scholarships for low-income students to enroll in early college courses.

The Finance Authority of Maine (FAME) has announced that its annual meeting and awards event, Showcase Maine, will be held Tuesday, November 16, 2010, from 4:30 p.m. to 7:45 p.m. at Portland’s Holiday Inn By The Bay.

Showcase Maine is a celebration of the many successful partnerships FAME has forged over the years with Maine’s business and higher education communities. 

The evening will feature a reception, including displays by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Maine’s own Seth Wescott, a two-time gold medalist in the snowboard cross event, and co-owner of a restaurant near Sugarloaf.

“We look forward to celebrating the many businesses and individuals that have succeeded during this challenging economic time.  They serve as inspiring examples as the state moves forward,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “FAME’s ability to adapt to change and provide innovative financial solutions to Maine’s business and higher education communities has been crucial to the success of many students and families.”

In addition to the reception showcasing various Maine business and educational organizations, the evening will feature a dinner and awards presentation by FAME.  This year’s award recipients include: 

• CPM Constructors of Freeport (Business at Work for Maine Award), a general contracting company founded in 1985 that has expertise in a number of construction areas, including concrete, bridge renovation and replacement, site work, commercial building construction and renovation, street and road renovations and drainage upgrades, heavy construction work and the design/build process;

• The 2010 Financial Literacy for Maine Youth Summit Planning Committee (Education at Work for Maine Award), for its commitment to increased financial education and literacy for the people of Maine;

• Kennebunk Savings Bank (Financial Institution of the Year Award), which has worked closely with FAME to ensure that Maine’s small businesses can access the financing they need; and

• Hon. Justin Alfond of Portland, state senator from Portland and co-chair of the 124th Maine Legislature’s Joint Standing Committee on Education and Cultural Affairs, in recognition of his support for FAME’s mission, including increased access to higher education and business opportunities for all Maine people.

Anyone interested in attending Showcase Maine may register online by November 9 at www.famemaine.com or contact FAME at (800) 228-3734.

Despite the challenging economy and national trends to the contrary, the Finance Authority of Maine (FAME) has recorded a two percentage point decline from last year’s student loan default rate.  This represents the largest decline among all guarantors nationwide.  According to data recently released by the U.S. Department of Education, FAME’s student loan cohort default rate fell to 5.9 percent for Fiscal Year 2008, compared to 7.9 percent during Fiscal Year 2007. 

The new FAME figure is well below the FY 2008 national average rate.  U.S. Secretary of Education Arne Duncan recently announced that this year’s national cohort default rate was 7.0 percent, an increase from the 6.7 percent posted nationally in FY 2007. 

Although many borrowers nationwide are experiencing difficulties with repayment in the stubborn recession, FAME improved its default rate as a guarantor in the Federal Family Education Loan Program (FFELP). 

Cohort default rates measure the percentage of all Federal Stafford Loan borrowers entering repayment in a given federal fiscal year who default on their loans before the end of the following fiscal year.  The current default rate data represents the cohort of borrowers whose first loan repayments were due between October 1, 2007 and September 30, 2008, and who defaulted before September 30, 2009.

FAME’s lower than average default rate is the result of its expanded outreach and default prevention services that support the efforts of college financial aid offices and educate borrowers.  In July 2008, FAME expanded its default prevention program to include an early intervention program that focuses on “at-risk” borrowers.  Through this program, borrowers are contacted by phone during their grace period and are provided with important loan repayment information, including repayment assistance for borrowers who are experiencing economic hardship. 

Since the program’s inception, nearly 10,000 Maine students have been enrolled in the early intervention program.  Because of these efforts, many Maine colleges experienced lower default rates than the previous year.  FAME’s ability to maintain a low default rate saves Maine taxpayers millions of dollars each year by reducing claim payments from the U.S. Department of Education.  It also directly benefits borrowers, schools and lenders. 

“We are proud of our low default rate, especially in these challenging economic times.  FAME’s emphasis on default prevention rather than on post-default collection is the right one for students, schools, and taxpayers,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME’s business model puts the needs of student loan borrowers first, where they should be,” she added. 

Items of interest for September, 2010:

Changes to FAME's Outreach Department

PSAT Day

Financial Aid 101

The Finance Authority of Maine (FAME) was recently notified by the U.S. Department of Education that Maine has been awarded a $1.5 million College Access Challenge Grant for fiscal year 2011.  Available monies are to be used by states on efforts to increase college access and success among underserved student populations. 

In Maine, the grant will be known as the Maine College Access Challenge Grant (MCACG) Program and will be administered by FAME.  The grant will enable FAME to expand its outreach efforts to help students achieve their postsecondary goals.  Funds will be used to provide information and outreach to Maine students and families regarding financial aid, financial education, and debt management.

“FAME is pleased to announce the availability of grant funds for the MCACG Program,” stated Beth Bordowitz, Chief Executive Officer of FAME.  “These much-needed funds will help us strengthen our outreach and financial education efforts to help Maine students and families achieve their postsecondary education goals.” 

The FAME outreach team includes veteran financial aid professionals who not only work with high schools but also coordinate with middle and elementary schools, as well as adult education centers, to reach students and parents.  The free services provided are available to all Maine citizens, regardless of income.

MCACG is part of a federal program designed to significantly increase the number of underrepresented students who enter and remain in postsecondary education.  To accomplish this purpose, MCACG will focus on three key components:  (1) college access and completion services and programs; (2) competitive grants to organizations providing college access and/or completion services or programs; and (3) scholarships for low-income students to enroll in early college courses.

Funding for grants will be awarded on a competitive basis to eligible non-profit organizations.  Proposals should support the overarching goal of increasing the number of students who are prepared to enter and succeed in postsecondary education, with a focus on preparation, aspiration and success.  The application deadline is September 24, 2010.

Eligibility and application information are available on FAME’s Web site.   Questions about MCACG or the application process should be directed to adostie@famemaine.com.

Items of Interest for August 2010:

Maine College Access Challenge Grant Program

EPIC Update

Harold Alfond College Challenge Casting Calls

The Board of Directors of the Finance Authority of Maine (FAME) recently approved the allocation and issuance of a Recovery Zone Facility Bond for a Westbrook-based business in order to help stimulate the economy and preserve and create Maine jobs. 

At its August 19, 2010 meeting, the FAME Board approved low-cost financing through the Recovery Zone Facility Bond Program for SIGCO, Inc. and Lake Creek Properties, LLC of Westbrook.  The two companies jointly submitted an application to obtain a bond allocation in the amount of $2,750,000 for the expansion of a building and the purchase of manufacturing equipment used in SIGCO’s glass fabrication process.  Norway Savings Bank will provide financing for the project.  Cumberland County Commissioners submitted a letter in support of the company’s application.

SIGCO, Inc. is a Westbrook-based glass and architectural metal fabricator and distributor.  Lake Creek Properties, LLC is a related company that owns the real estate on which the company operates.  SIGCO employs ninety-three employees and hopes to grow the workforce to 100 employees next year and to 110 employees the following year.

FAME Board Chair Glenn Lamarr stated:  “FAME is pleased to assist SIGCO, Inc. in accessing lower-cost financing to help with its expansion and purchase of equipment.  We expect the project to help stimulate the local economy and preserve Maine jobs.”

“SIGCO greatly appreciates FAME’s support of our expansion plans and equipment purchase as we grow our business,” stated David McElhinny, President of SIGCO, Inc.  “With FAME’s help, we are able to undertake this expansion project and solidify our position as New England’s premier glass fabricator.”

Last spring, the Maine Legislature enacted and Governor Baldacci signed into law Public Law 2009, Chapter 517, An Act to Facilitate Recovery Zone Facility Bonds, Recovery Zone Economic Development Bonds and Qualified Energy Conservation Bonds.  The law, which became effective March 17, 2010, facilitates low-cost financing for eligible private and public projects state-wide.  The law implements federal recovery act provisions to help Maine businesses, municipalities, counties and others access tax-exempt bond financing for economic development projects. 

Along with Maine counties, FAME and the Maine Municipal Bond Bank help facilitate these opportunities for financing economic development.  FAME and the Bond Bank use their experience and expertise in the issuance of bonds.  FAME helps to facilitate private economic development projects, while the Bond Bank helps with public projects.

Anyone interested in more information may contact FAME (for private projects) at (800) 228-3734 or (for public projects) the Maine Municipal Bond Bank at (800) 821-1113.  Additionally, interested persons may contact their local county officials for more information.  FAME has posted a fact sheet with county contact information at its Web site: http://www.famemaine.com/files/Pages/business/businesses/bonds/Recovery_Zone_Facility_Bonds.aspx

FAME also approved an increase in the maximum dollar amount in its Economic Recovery Loan Program.  The Economic Recovery Loan Program provides subordinate (gap) financing to assist Maine businesses in their efforts to remain viable and/or improve productivity.  Effective August 19, 2010, the new maximum loan amount for a single loan relationship will be increased from $300,000 to $500,000 through June 30, 2011.  The increased loan limit is a result of the June 2010 voter-approved bond question that recapitalized the Economic Recovery Loan Program by $3 million.

Finally, the FAME Board authorized initiation of the rulemaking process for several proposed rules, including the Maine Veterinary Medicine Loan Program and the Maine Food Processing Grant Program.  The veterinary medicine program results from Public Law 2009, Chapter 488, which was enacted during the Second Session of the 124th Maine Legislature.  The law, An Act to Encourage Veterinary Practice in Maine and Make Revisions to Related Medical Education Programs Administered by the Finance Authority of Maine, created the Maine Veterinary Medicine Loan Program to be administered by FAME.  When funded, the program will feature up to two forgivable loans of up to $25,000 per year for Maine veterinary students and will promote veterinarian practice for livestock in areas of the state that are underserved for livestock practitioners.  Loan recipients in the program may receive forgiveness of either 12.5% or 25% annually of their total balance depending on their employment and the level of livestock service they provide.  The Maine Food Processing Grant Program results from the voter-approved June bond measure that authorizes FAME to administer food processing grants fro fishing, agricultural, and dairy enterprises.  The rule is designed to assist Maine food processors, their employees, and Maine communities with grants to support the creation, retention, and growth of such enterprises.  Public hearings on both rules will be held at the Board’s September 16, 2010 meeting in Wells.
         

The Finance Authority of Maine (FAME) is currently displaying the work of Connie Henderson, a watercolor artist from Dixmont, Maine. 

“FAME is pleased to support Maine artists and benefits from the beautiful art adorning our hallways,” stated FAME Chief Executive Officer Beth Bordowitz.   

Henderson was born in Portland, Maine, and began painting during her childhood.  She won her first prize at the age of ten.  She subsequently studied under several well-known artists and earned a degree in fine arts from the University of Maine.  She enjoys passing on to her students what she has learned from her past teachers.   

Henderson has received several awards and was accepted into the juried Senior Festival Show at the University of Maine Hutchinson Center in Belfast.  She also was accepted into the juried part of the Maine Public Broadcasting Network auction. 

Henderson currently exhibits at the Works of Hand Gallery in Winter Harbor, Maine.  She has been offering workshops for over thirty years.  Henderson’s works can be viewed online at www.dirigoroadgallery.com. 

FAME hopes to bring visibility to the achievements of Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others. 

The public may view the exhibition at the FAME office Monday through Friday from 8:00 a.m. to 5:00 p.m.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off Interstate 95.  The exhibit is open to the public until mid-October.            

To learn more about FAME art exhibits and openings, or if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine people and businesses pursue educational and business opportunities. 

Items of Interest for July, 2010:

Updates to FAME Web Site

End of Year Outreach Statistics

EPIC Update

Sebastian Bond of Brunswick, Maine has a head start on his college education thanks to his parents Andrew and Melanie, and the Harold Alfond College Challenge Grant. Bond is the 5,000th Maine baby to receive the Grant.  As with all Maine babies under one year of age, Sebastian was eligible for a $500 grant from the Alfond Scholarship Foundation to start a NextGen College Investing Plan® (NextGen®) account.

Born at 9:30 a.m. on May 6, 2010 at Mid Coast Hospital in Brunswick, Sebastian is one of approximately 13,500 Maine resident babies born each year who can receive the Alfond Grant as long as they sign up before their first birthday.  The Harold Alfond College Challenge was created to help families aspire to and prepare for higher education by starting early.  Since 2008, the Alfond Scholarship Foundation has contributed $2,500,000 to tax-advantaged NextGen college savings accounts.

 “One of the best gifts for us to give as parents is to enable Sebastian to grow up and be what he wants to be, and this is one way for us to help him get started at a very early age,” said Andrew Bond, Sebastian’s father.  “We heard about the Alfond Grant when it originally made the news and it was reinforced as a good idea in our birth classes and at our doctor’s office.”

 “I had to pay for school myself, and knowing how difficult it was for me, I would rather he not have to go through that same struggle,” said Melanie Bond, Sebastian’s mother.

“The Alfond Grant gets you to start thinking about saving early on.  If the money had not been there to start the account, it would have been easier for us to put off saving,” said Andrew Bond.

Harold Alfond, former owner of the Dexter Shoe Company, believed all Maine children deserve the opportunity to succeed.  By establishing this grant program before he passed away in November 2007, he encouraged aspiration and access to higher education for all Maine’s children.

There is no requirement to add personal funds to the accounts, though it was Mr. Alfond’s hope that families, businesses and even communities would invest in these children’s futures.  According to the Finance Authority of Maine (FAME), administrator of the program, 40% of all Maine babies born since January 1, 2009 are being enrolled before their first birthday and over 25% of all families are making additional contributions to their babies’ accounts.

Families may request NextGen application materials be mailed to them directly or they may download them by going to www.500forbaby.org.  Any questions about the Alfond Grant or NextGen should be directed to FAME 1-800-228-3734 or info@500forbaby.org.

Items of Interest for June 2010:

College Access Challenge Grant

Opportunity Maine Reminder

The Harold Alfond College Challenge Enrolls 5,000th Baby

The Finance Authority of Maine (FAME) and the Maine Office of Securities announced today that Maine has entered into a settlement with OppenheimerFunds, Inc. on behalf of certain NextGen College Investing Plan® (NextGen) participants.  The settlement ends an investigation by the Office of Securities in conjunction with the Office of the Attorney General into the management of certain investments offered by OppenheimerFunds, Inc. within the NextGen College Investing Plan. 

All OppenheimerFunds portfolios in NextGen were terminated by FAME in July 2009.

“This settlement, similar to those reached by other states with OppenheimerFunds, resolves the matter and returns money to the accounts of families so they may continue saving for college,” said FAME Chief Executive Officer Beth Bordowitz.  “We will continue to vigilantly monitor all funds offered in the NextGen plan for the benefit of Maine families and other account holders seeking to prepare for future college expenses.”

“I am pleased that the investigation by my Office and the Office of the Attorney General resulted in a settlement favorable to Maine residents,” said Securities Administrator Judith Shaw.  “I commend FAME for its diligence in overseeing funds critical to the continued success of Maine’s youth.”

“My staff and the Office of Securities continue to work together to protect Maine investors,” stated Attorney General Janet T. Mills.  “I appreciate FAME’s assistance throughout the investigation and the leading role that FAME and the Securities Administrator played in reaching this favorable result.”

The settlement will divide $6,030,000 among certain account holders based on their exposure to Oppenheimer Core Bond Fund from January 1, 2008 through March 31, 2009.  A relatively small portion of the overall NextGen investments was invested in that Fund. 

Affected investors who maintain a NextGen account will have their allocation of the settlement credited directly to their NextGen account.  Others will be eligible to receive a check.  FAME will be notifying affected account holders about the distribution of the settlement.

More information is available at www.me-edsettlement.com.

NextGen was created by the Maine Legislature in 1999 as a qualified tuition program under Section 529 of the Internal Revenue Code.  It is a tax-advantaged investing program of the Finance Authority of Maine designed to help families prepare for higher education expenses.  Merrill Lynch is the program manager and underwriter of the plan.  Anyone can open an account, regardless of income or residency, and assets can be used at any accredited U.S. post-secondary institution.  Matching grants are available to eligible families.

The Maine Office of Securities protects Maine investors by investigating and prosecuting violations of the securities laws; licensing broker-dealers, agents, investment advisers, and investment adviser representatives; and reviewing registration statements and exemption filings for securities issuers that are seeking to sell in Maine.  To learn more information about the office, please visit http://www.maine.gov/pfr/securities/index.shtml

NextGen is a Section 529 plan administered by FAME.  Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, member SIPC, is the program manager and underwriter. Before investing you should carefully consider the investment objectives, charges, expenses and risks of investing in the NextGen Plan.  You should also consider whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 plan.  Request a Program Description from your Maine bank or financial advisor, or call FAME at 1-800-228-3734 and read it carefully.

The Board of Directors of the Finance Authority of Maine (FAME) today approved commercial loan insurance on separate bank loans for two Maine companies, AS & CB Gould and Sons, Inc. of Cornville, and WahlcoMetroflex of Lewiston.  FAME’s actions help the companies create and retain a total of 131 Maine jobs.

FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution.  Pro-rata insurance covers a certain percentage of a lender’s loss in the event of default and liquidation.

“The approval of loan insurance for these two Maine companies illustrates the diversity of Maine businesses that FAME can assist.  Creating and maintaining jobs in both the forest products and manufacturing sectors are essential to the Maine economy,” stated FAME Chief Executive Officer Beth Bordowitz. 

AS & CB Gould, Inc., formed in 1978, operates three mechanized logging operations in the state.  The company has over thirty employees and includes as customers Dirigo Timberlands, Osito, and Plum Creek.  FAME will provide 90% pro-rata loan insurance on a five-year term loan by Camden National Bank in the amount of $1,153,000, as well as 25% leveraged loan insurance on a fifteen-year loan by the bank in the amount of $117,000.  These facilities are in addition to 90% pro-rata loan insurance on a Camden National term loan in the amount of $325,000 already approved by FAME.  The loan insurance will help the company refinance existing debt and purchase equipment for its tree harvesting operations.  FAME’s actions will help the company create four full-time positions and retain thirty Maine employees.

“Gould appreciates FAME’s swift assistance in the form of loan insurance, as well as its past assistance through other loan insurance.  The new equipment is critical to helping the company improve its cash flow and improve operations going forward,” stated company chief executive officer Michael Gould. 

FAME also approved 80% pro-rata loan insurance on a $1,250,000 Androscoggin Bank line of credit for WahlcoMetroflex in Lewiston.  For over fifty years, the company has been a global leader in designing and manufacturing diverters, dampers and expansion joints.  The underlying insured bank loan will provide a revolving line of credit to help the company secure manufacturing contracts.  FAME’s actions will help the company retain ninety-seven Maine jobs.  FAME has provided previous financing assistance to the company, including past help for the current management team to buy the company out of a former parent company’s bankruptcy. 

“WahlcoMetroflex appreciates FAME’s continued support of our company,” stated John Powell, president and chief executive officer of the company.  “We look forward to a bright future employing our cutting-edge technology and industry knowledge.”

AUGUSTA — The Finance Authority of Maine (FAME) is pleased to announce the recipients of the 2010-2011 Educators for Maine Loans and Robert C. Byrd Honors Scholarships. 

“FAME congratulates this year’s recipients of the Educators for Maine Loan and the Robert C. Byrd Honors Scholarship.  They represent the best of Maine and forecast a bright future for our state as a whole,” stated Beth Bordowitz, FAME’s Chief Executive Officer.

The Educators for Maine Loan Program is a competitive, merit-based loan program for Maine students pursuing careers in teaching, including speech pathology and child development.  The loan may become forgivable for recipients who provide return service as educators in Maine.  The loan is awarded to seniors graduating from high school who are residents of Maine, have demonstrated academic achievement, and intend to become Maine educators after graduating from college.  The loan is also awarded to current college or university students who are residents of Maine, are enrolled in an education program of study, have demonstrated academic achievement, intend to become Maine educators after graduating from college, and do not currently hold state certification.  Students are also evaluated based on their community involvement, awards and specials honors received, as well as the style and content of an essay. 

For the 2010-2011 academic year, forty Maine students were selected to receive the $3,000 loan.  Twenty undergraduate students enrolled in education programs and twenty graduating high school seniors intending to major in education were selected to receive the $3,000 award.  The loan is renewable for each year of study, up to a maximum of $12,000.  Recipients were recently notified by letters personally signed by Governor John E. Baldacci.

FAME is also pleased to announce the recipients of this year’s Robert C. Byrd Honors Scholarship.  The Robert C. Byrd Honors Scholarship program is a highly competitive, merit-based scholarship that is funded by federal dollars and offered to students in all fifty states.  Awards are made to graduating high school seniors who are residents of Maine and have demonstrated significant academic achievement in a rigorous program.  Students are also evaluated based on their community involvement, awards and specials honors received, as well as an essay.  While the number of awards varies from year to year, at least one recipient is selected from each Maine county annually. 

For the 2010-2011 academic year, twenty-seven students were selected to receive the $1,500 Byrd Honors Scholarship.  The award is renewable for up to four years.

FAME has posted more information about the Educators for Maine Loan Program and the Robert C. Byrd Honors Scholarship on its Web site:  www.famemaine.com.  The information includes names of 2010-2011 recipients (who have authorized such disclosure), as well as their high schools and home towns.

The Finance Authority of Maine (FAME) is displaying the work of Alec Hartman, a professional Maine artist specializing in photography. 

FAME CEO Beth Bordowitz stated: “FAME is fortunate to be able to brighten its hallways with beautiful art while simultaneously supporting a young and creative artist like Alec.” 

Hartman currently resides in East Vassalboro and has been photographing nature and wildlife since childhood. He has produced award-winning photography that is displayed in galleries throughout Maine, as well as in London, England.  

Hartman’s work is noted for the human-like expressions of its wildlife subjects and his ability to capture the extraordinary beauty in everyday landscapes. A collection of his photography can be found on his website at www.alecphoto.com.  

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others. 

The public may view the Hartman exhibition at the FAME office Monday through Friday from 8:00 a.m. to 5:00 p.m. The FAME building is located at 5 Community Drive, Augusta, Exit 112 off Interstate 95.  The exhibit is open to the public until mid-July.   

To learn more about FAME art exhibits and openings or, if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.

Items of Interest for May 2010:

Changes to FAME's Guarantee

Selections for Educators for Maine Program and Robert C. Byrd Honors Scholarship Program

Wiscasset High School Offers Creative Program

The Finance Authority of Maine (FAME) recognized April as Financial Literacy Month by offering a variety of educational workshops and seminars to students across the state.

FAME offered a total of thirty financial literacy and financial aid-related events in April for students ranging from fourth grade to adult learners, despite the fact that one of those weeks involved school vacation.  Serving over 2,000 students, FAME:

• Held thirty-nine “Get A Life” financial literacy game sessions involving 885 students;
• Participated in four college fairs, with approximately 1,035 students attending;
• Conducted a FAFSA-completion computer lab for adult students; and
• Offered six financial aid information sessions – two for adult education students; one for college students; three for high school students – at which a total of 147 students attended.

In 2000, The Jumpstart Coalition for Personal Financial Literacy began promoting April as Financial Literacy for Youth Month.  In 2003, the United States Senate designated April as Financial Literacy for Youth Month, and in March 2004 the Senate officially recognized April as National Financial Literacy Month.

“Maine’s Financial Literacy Month was a great success.  FAME was happy to offer a variety of innovative financial literacy workshops and educational seminars to help Maine students prepare for strong and responsible financial futures,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME looks forward to actively participating in the upcoming financial literacy summit and consumer protection conference, as well.” 

FAME is also excited to introduce “Cash” and “Max,” the cartoon stars of FAME’s new elementary school financial literacy curriculum.  According to FAME Default Prevention Specialist Mary Dyer, the characters were created to encourage career and college exploration and to introduce money management concepts.  FAME recently released its new Money Management Tool Kit, designed to provide valuable money management information to high school, college and adult students.  Along with the new publications, a money management section was recently added to the FAME Web site. 

A financial literacy summit for Maine teachers, administrators, counselors and others, “Fostering Financial Literacy in Maine Schools:  Best Practices, Innovative Approaches,” will be held at the Augusta Civic Center on May 7, 2010 from 8:00 a.m. to 3:30 p.m.  FAME helped plan the summit and will be presenting at the event, which is designed to help Maine students and youth understand the basics of earning, saving, spending and investing money.

For more information on Friday’s summit, please visit:  http://www.state.me.us/education/documents/FLSmarketing1.pdf

Additionally, a free consumer protection conference sponsored by The New England Consumer Advisory Group (NESCAG) at the Federal Reserve Bank of Boston and the Maine Bureau of Consumer Credit Protection will be offered Tuesday, May 11, 2010 from 10:00 a.m. to 1:00 p.m. at the University of Maine Augusta’s Jewett Hall.

The event will feature a variety of speakers, topics, free handouts, and light refreshments.  The topics include: Smart Credit Card Usage; The Secrets of Auto Buying and Financing; Understanding Student Loans (FAME to present); How Bank Debit Cards Work; Elder Financial Protection; Identity Theft; and Saving Your Home from Foreclosure.
For more information on the conference, please visit:  http://www.maine.gov/pfr/consumercredit/events.htm

Items of Interest for April 14, 2010:

Health Care and Education Reconciliation Act of 2010

State Legislative Update

Washington D.C. Update

AUGUSTA — The Board of Directors of the Finance Authority of Maine (FAME) approved on April 15, 2010 90% pro-rata commercial loan insurance for a $1,140,000 Gorham Savings Bank loan to Count & Crush, LLC d/b/a Clynk. 

The loan will help the company fund the acquisition of new sorting equipment.  FAME’s actions will help the company create four full-time positions and retain fifty-one full and part-time Maine employees.

Clynk employs a new technology for the redemption and recycling process using a patented, card-based system.  Customers may efficiently redeem bottles and cans at redemption centers located at participating Hannaford Supermarkets in Maine. The cardholder receives credit for their bottles and cans by printing out a receipt at the Clynk kiosk located inside the store; the receipt can be redeemed at checkout.

Clynk offers redemption services at twenty-five locations and is scheduled to open an additional sixteen locations in 2010. The company estimates that between 25,000 and 30,000 Maine customers visit their facilities each month.

“FAME is pleased to support the growth of this Maine-based company which is a global pioneer of redemption and sorting technology,” stated FAME Board Chair Glenn Lamarr. “The company’s innovative technology and commitment to recycling and improving the environment are important elements of Maine’s economic and energy future.”

FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution, in this case Gorham Savings Bank. Pro-rata insurance covers a certain percentage of a lender’s loss in the event of default and liquidation, in this case up to 90%.
 
“Clynk appreciates FAME’s swift assistance in the form of loan insurance, as well as its past assistance through loan insurance and the Maine Seed Capital Tax Credit Program. The new equipment is critical to taking Clynk to the next step and creating and retaining Maine jobs,” stated company chief executive officer Clayton Kyle. “We are eager to move forward and grow our business.”

The Finance Authority of Maine (FAME) announces the availability of low-cost economic development financing for certain eligible projects made available through the American Recovery and Reinvestment Act of 2009 (ARRA). 

The Maine Legislature recently enacted and Governor Baldacci has signed into law important economic development legislation that will facilitate low-cost financing for eligible private and public projects state-wide.  Public Law 2009, Chapter 517, An Act to Facilitate Recovery Zone Facility Bonds, Recovery Zone Economic Development Bonds and Qualified Energy Conservation Bonds, became effective March 17, 2010. 

The legislation implements federal recovery act provisions and ensures that Maine will be able to take advantage of these one-time opportunities.  The initiatives will help Maine businesses, municipalities, counties and others access tax-exempt bond financing for economic development projects. 

FAME Chief Executive Officer Elizabeth Bordowitz stated:  “FAME is pleased to offer lower-cost financing opportunities for eligible private projects that meet the guidelines set forth by the federal government.  To be eligible to access this tax-exempt financing opportunity, projects must be ‘shovel ready’ and creditworthy, with commitments in place from underwriters, banks or others to buy the bonds once issued.”

The bill was sponsored by Senate President Libby Mitchell at the request of FAME.  The Legislature’s Business, Research, and Economic Development Committee worked closely with President Mitchell and various stakeholders, including FAME, the Baldacci administration, the Maine Municipal Bond Bank, and Maine counties to reach consensus and not miss out on this crucial economic development opportunity.  

The purpose of ARRA and the bonds is to provide immediate economic benefit and stimulus to the states.  Most of the opportunities contained in the new law expire December 31, 2010.  Along with Maine counties, FAME and the Maine Municipal Bond Bank will help facilitate these opportunities for financing economic development.  FAME and the Bond Bank will use their experience and expertise in the issuance of bonds.  FAME will help facilitate private economic development projects, while the Bond Bank will help with public projects.

Anyone interested in more information may contact FAME (for private projects) at (800) 228-3734 or (for public projects) the Maine Municipal Bond Bank at (800) 821-1113.  Additionally, interested persons may contact their local county officials for more information.  Click here for more information on this program.

Items of Interest for March 30, 2010:

Boothbay Region Elementary School wins WGME's Kid Correspondent for 2010

Final Funding Authorizations Posted

Careers of the 21st Century

Items of Interest for March 19, 2010:

FAME Staff Updates

Legislative Updates

Washington DC Updates

The Finance Authority of Maine (FAME) is displaying the work of David Clinard, a professional Maine artist specializing in photography. 

FAME Chief Executive Officer Elizabeth Bordowitz stated:  “We are proud to support and recognize Maine artists and to bring public attention to the arts and artists who enrich our society and strengthen our communities.  FAME is pleased to provide an opportunity for Maine citizens to view Mr. Clinard’s beautiful photos of various Maine scenes.” 

Clinard’s interest in photography dates back to his childhood, when he first used an old Brownie box camera.  He is mostly self-taught, with the exception of black and white photography courses he completed at the University of Maine at Augusta and Unity College.   

Clinard is interested in capturing the simple things the natural world provides so well, such as shapes, designs, colors, contrasts, and patterns.  He looks for the “thing in itself” and from that captures many beautiful images.   

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others. 

The public may view the Clinard exhibition Monday through Friday from 8:00 a.m. to 5:00 p.m. The FAME building is located at 5 Community Drive, Augusta, Exit 112 off 95.  The exhibit is open to the public until the middle of April, with a reception on Thursday, March 25, from 5 to 7 p.m.    

To learn more about FAME art exhibits and openings, or if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.

Items of Interest for March 5, 2010:

Response to Bangor Daily News Editorial

Governor Baldacci Nominates New Appointments to the FAME Board

Harold Alfond College Challenge - Casting Calls in Waterville and Portland

AUGUSTA — Despite the challenging economy, the Finance Authority of Maine (FAME) has recorded an unofficial decline in its student loan default rate.  According to data recently released by the U.S. Department of Education, FAME’s draft student loan cohort default rate fell to 6.1% of borrowers who entered repayment during federal Fiscal Year 2009, a decline from the 7.9% rate posted last year for the previous cohort of borrowers.  It is the lowest rate posted by FAME since 2005.

The new figure is below the FY 2007 national average rate of 6.7% for all guarantors.  Although many borrowers nationwide are experiencing difficulties with repayment in the stubborn recession, FAME has improved its default rate as a guarantor in the Federal Family Education Loan Program (FFELP).  In Maine, there were 1,128 more borrowers who entered repayment in FY 2008 and 72 fewer borrowers than the previous year who defaulted.

Cohort default rates measure the percentage of all federal Stafford Loan borrowers entering repayment in a given federal fiscal year who default on their loans before the end of the following fiscal year.  Official cohort default rates won’t be released by the U.S. Department of Education until September 2010.  Draft rates are released in mid-February each year and typically serve as good indicators of the subsequent official numbers. 

FAME’s lower than average default rate is the result of its expanded outreach and default prevention services that support financial aid offices and educate borrowers.  Because of these efforts, many Maine colleges experienced lower default rates than the previous year.  FAME’s ability to maintain a low claims rate saves Maine taxpayers millions of dollars each year by reducing claim payments from the U.S. Department of Education.  It also directly benefits borrowers, schools and lenders. 

“We are proud of our low default rate, especially in these challenging economic times.  FAME’s emphasis on default prevention rather than on post-default collection is the right one for guarantors, schools, lenders and taxpayers,” stated FAME CEO Beth Bordowitz.  “FAME’s business model puts the needs of student loan borrowers first, where they should be,” she added.  “Eliminating these important services, as contemplated by pending federal legislation, would have a negative impact on Maine students and schools.”

Items of Interest for February,  2010:

FAME Commerical Loan Activity

Underound Oil Storage and Tank Replacement Program

Legislative Update

Items of Interest for February 2, 2010:

Education Program Applications Available Online

State Legislative Update

Washington DC Update

The Finance Authority of Maine (FAME), which administers state and federal college grants and scholarships, is urging Maine residents of all ages who are interested in college or post secondary education to explore all free resources before paying for private services.

Some local and national organizations are charging hundreds of dollars for seminars or individual assistance to research scholarships, loans or to complete the Free Application for Federal Student Aid (FAFSA), which is required by most educational institutions. FAME maintains that, due to the abundance of reliable, free help from professionals who work in college financing statewide, there is no need for families or students to pay for services.

“College can be an expensive undertaking. We encourage Maine families and students to take advantage of the extensive free assistance and resources available before paying for similar services,” says FAME Chief Executive Officer Beth Bordowitz. 

High school guidance counselors and college financial aid offices can be very helpful with the financial aid application process. FAME’s education counselors offer advice free of charge, as well as a free Financial Aid Toolkit on request. The free publication includes scholarship information, which can also be researched using free web-based search engines.

FAME will once again sponsor free College Goal Sunday seminars at twenty-two locations throughout the state on January 31, 2010 at 2 p.m.  College Goal Sunday provides line-by-line assistance with the FAFSA by financial aid professionals from many Maine colleges and universities. The FAFSA form is required by most schools for financial aid consideration.

Four of the sites will rely on the state’s interactive television (ITV) system to broadcast the free program for public viewing. Some sites will use computer labs, allowing participants to access and complete the FAFSA online during the seminar. All attendees are encouraged to bring recent tax information or estimates. Individual questions can be addressed following the group presentation.

Financial assistance can come from a variety of resources, including grants, scholarships, federal student loans, campus work study jobs and private or alternative loans. Application deadlines vary at each school. Students are urged to contact schools directly about filing deadlines. “Applying for aid on time and as early as possible is as important as ever,” added Bordowitz.

To learn more about the program, or for directions to a convenient location, please visit "http://www.collegegoalsundaymaine.com/" or call FAME toll free at 1-800-228-3734.

Items of Interest for January 19, 2010:

Common Manual Updates

State Legislative Update

Washington DC Update

Items of Interest for January 5, 2010:

College Goal Sunday

Education Portal Information Center (EPIC)

2,500 Maine Babies Enrolled