Archive Posts for 2011

The Finance Authority of Maine (FAME), which administers state and federal college grants and scholarships, is pleased to announce the 2012 schedule for free workshops on completion of the Free Application for Federal Student Aid (FAFSA) throughout the state. 

College Goal Maine will launch on January 4th and continue into February, offering free assistance with FAFSA completion, which is required by most educational institutions for financial aid consideration.

Ten free regional workshops will take place on January 29, 2012, which is known in many states as College Goal Sunday.

For the past eight years, FAME’s free FAFSA completion program has drawn thousands of Maine families to locations all over the state to workshops that provide financial aid information to college-bound students and their families. All locations will again use computer labs, allowing participants to access the FAFSA online during the seminar. Line-by-line assistance will be provided by financial aid professionals from Maine colleges and universities. All attendees are encouraged to bring recent tax information or estimates. Residents of all ages who are interested in college or postsecondary education should consider attending.

Financial assistance can come from a variety of resources, including grants, scholarships, federal and other student loans, and work-study jobs. Application deadlines vary at each school, and students are urged to contact schools directly about filing deadlines. 

Many financial aid applicants are filing too late for grants, loans and scholarships, according to FAME Chief Executive Officer Beth Bordowitz: “These free workshops are designed to help Maine students of all ages access needed financial aid. FAME wants to encourage early applications so Maine families and students can take full advantage of all available resources.” 

“In this economy, any education beyond high school is valuable in acquiring a job – whether it is a one-year certificate or a two-or four-year degree,” said Bordowitz. “Gaining access to financial aid is an important step toward continuing education."

To learn more about the College Goal Maine FAFSA workshops and locations, visit http://www.collegegoalsundaymaine.com/ or call FAME toll free at 1-800-228-3734.

Items of Interest for November 2011:

Financial Planning Conference & Showcase Maine

Reserve Cup Challenge

College Goal Maine

The Board of Directors of the Finance Authority of Maine (FAME) recently approved direct loan financing for Great Northern Paper Company, LLC in Millinocket.  FAME’s actions will help to strengthen the company’s financial position and create and retain approximately 215 jobs in Maine.

“FAME is pleased to assist Great Northern Paper Company, which is a vital asset to the Katahdin region and to the state of Maine.  Our expectation is that the mill will remain competitive on a global basis and continue to employ hardworking Mainers,” stated new FAME Board Chair Susan Snowden. 

At FAME’s November 15 meeting, the Board approved a direct loan of $1 million to help re-start the Great Northern Paper Company’s mills in Millinocket and East Millinocket.  The loan proceeds will be used by the company to make personal property tax payments due the towns by the end of 2011. 

The East Millinocket Mill resumed operations of its Number 5 paper machine and now employs 215 Mainers. 

“Great Northern is very appreciative of FAME’s swift and flexible actions. Their efforts will greatly assist us in maintaining sustainable business operations and keep folks employed long term” stated Richard Cyr, CEO of Great Northern Paper.

The Board also held public hearings on two proposed rules created in response to recent legislative action:  an amendment to the existing Maine Seed Capital Tax Credit Program and the newly created Maine New Markets Tax Credit Program.

Finally, the Board elected the following individuals as officers for 2012:  Susan Snowden of Scarborough, Chair; Cheri Walker of Falmouth, Vice President; and Patrick Murphy of Portland, Treasurer. 

The Finance Authority of Maine (FAME) held its annual meeting and awards event, Showcase Maine, on Tuesday, November 15, 2011, 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 featured a reception, including exhibits by forty-five Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Robert C. Doll, CFA, CPA.  Doll is the Senior Managing Director, Chief Equity Strategist, and Head of the U.S. Large Cap Series at BlackRock.  BlackRock is one of the world’s leading providers of investment advisory and risk management solutions.

“We were happy to celebrate the successes of the past year with our many partners in both the business and higher education sectors,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “Attendees enjoyed visiting our showcase of Maine businesses and educational organizations.”

In addition to the reception showcasing various Maine business and educational organizations, the evening featured a dinner and awards presentation.  This year’s award recipients included: 

• Kepware Technologies, Inc. of Portland (Business at Work for Maine Award):  Kepware develops a wide range of communication and interoperability software solutions for the automation industry.  They are committed to strengthening Maine’s workforce by providing scholarships and internship opportunities for engineering students.

• STRIVE U (Education at Work for Maine Award):  STRIVE U provides postsecondary education and training to young adults with developmental disabilities in the realms of residential, employment, and community skills, with the goal of enabling its graduates to live and work as full community members with maximum independence and productivity.

• Camden National Bank (Financial Institution of the Year Award):  Camden National is committed to the communities it serves, supporting a variety of businesses, community, and non-profit organizations.  The bank sponsors Community Spirit of Giving, a community outreach program that helps raise money to help area families in need at the holidays.  Over the past year, the bank has partnered with FAME on fifty-six loans totaling over $16 million. 

• Hon. Christopher W. Rector of Thomaston (Dirigo Legislative Champion):  Rector, state senator from Knox County, is co-chair of the 125th Maine Legislature’s Joint Standing Committee on Labor, Commerce, Research, and Economic Development.  He is a strong supporter of FAME’s mission of helping Maine people pursue business and educational opportunities.

Prior to the annual dinner event, FAME and the Maine Office of Securities hosted a day-long Financial Planning Conference for Maine Professionals with continuing education credits available.  Presenters included Joseph Hurley, founder and chief executive officer of Savingforcollege.com, an authority on college savings plans.  The conference was geared toward professionals such as accountants, attorneys, bankers, and financial advisors. 

The Finance Authority of Maine (FAME) will hold its annual meeting and awards event, Showcase Maine, on Tuesday, November 15, 2011, 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 exhibits by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Robert C. Doll, CFA, CPA.  Doll is the Senior Managing Director, Chief Equity Strategist, and Head of the U.S. Large Cap Series at BlackRock.  BlackRock is one of the world’s leading providers of investment advisory and risk management solutions.

“We look forward to celebrating the successes of the past year with our many partners in both the business and higher education sectors,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “We know that people enjoy attending our showcase of Maine businesses and educational organizations, and it is a privilege for us to recognize some of the bright stars guiding Maine forward.”

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: 

• Kepware Technologies, Inc. of Portland (Business at Work for Maine Award):  Kepware develops a wide range of communication and interoperability software solutions for the automation industry.  They are committed to strengthening Maine’s workforce by providing scholarships and internship opportunities for engineering students.

• STRIVE U (Education at Work for Maine Award):  STRIVE U provides post-secondary education and training to young adults with developmental disabilities in the realms of residential, employment, and community skills, with the goal of enabling its graduates to live and work as full community members with maximum independence and productivity.

• Camden National Bank (Financial Institution of the Year Award):  Camden National is committed to the communities it serves, supporting a variety of businesses, community, and non-profit organizations.  The bank sponsors Community Spirit of Giving, a community outreach program that helps raise money to help area families in need at the holidays.  Over the past year, the bank has partnered with FAME on fifty-six loans totaling over $16 million. 

• Hon. Christopher W. Rector of Thomaston (Dirigo Legislative Champion):  Rector, state senator from Knox County, is co-chair of the 125th Maine Legislature’s Joint Standing Committee on Labor, Commerce, Research, and Economic Development.  He is a strong supporter of FAME’s mission of helping Maine people pursue business and educational opportunities.

Prior to the annual dinner event, FAME and the Maine Office of Securities will be hosting a day-long Financial Planning Conference for Maine Professionals with continuing education credits available.  Presenters include Joseph Hurley, founder and chief executive officer of Savingforcollege.com, an authority on college savings plans.  Others will present at the conference, as well, which will be held at Portland’s Holiday Inn By the Bay.  The conference is geared toward professionals such as accountants, attorneys, bankers, and financial advisors.  To learn more about the conference and/or register, please visit:

http://archive.constantcontact.com/fs047/1102549409703/archive/1108097382456.html

The Finance Authority of Maine (FAME) is displaying the work of J. Donna Asmussen, a professional Maine artist specializing in watercolor, with additional focus in printmaking. 

FAME Chief Executive Officer Beth Bordowitz stated:  “FAME is pleased to recognize Donna and to help bring public attention to Maine artists.” 

A painter and printmaker, Ms. Asmussen works mainly from her home studio in Smithfield, Maine. Before becoming involved in the arts, she worked in education as a teacher, school administrator, and consultant for many years in Rhode Island and Maine.  She studied oil painting briefly in Rhode Island while a public school teacher there, and currently studies watercolor with Stan Keirstead in Western Maine and printmaking with Scott Reed at Colby College.     

Ms. Asmussen’s background in education has led her to partner with local schools and libraries, loaning them original works to encourage children to experiment with art.  A variety of her works can be viewed on her website at www.artjourneyer.com. 

Pieces currently displayed at FAME include watercolors and monoprints inspired by the ever-changing seasonal beauty of Maine, with a focus on her new work, a series of pen and ink images, washed with watercolor, capturing scenes from Belgrade Lakes and the Maine coast.

The public may view Donna Asmussen’s 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 I-95.  The exhibit is open to the public until mid-January 2012.  A reception is planned for Thursday, November 10 from 5 p.m. – 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 October 2011:

FAME Annual Showcase Maine

Financial Planning Conference for Maine Professionals

Fort Kids First: Future College Plan

The Board of Directors of the Finance Authority of Maine (FAME) today approved eighty percent commercial loan insurance on a BDC Capital Corp. loan of $2.25 million to Hampden-based Maine Trailer, Inc.  FAME’s actions will help to strengthen the company’s financial position and create and retain twenty-six jobs in Maine.

“FAME is pleased to assist Maine Trailer as it restructures its capital so that it can remain a viable Maine employer,” stated FAME Board Chair Glenn Lamarr. 

FAME’s loan insurance will help the company refinance debt and fund capital expenditures, as well as pay off debt. 

Located in Hampden, Maine Trailer is in the business of trailer leasing, sales, service and parts distribution.  Founded in 1984, the company was acquired in 2001 by an investment group headed by William Peters and Richard Donahue.  The company’s market area includes central and northern Maine.  It recently opened a location in Auburn.  Some of the company’s customers include Old Town Canoe, Hartt Transportation, L.L. Bean, Dysart’s Service, Inc., and Pottle’s Transportation. 

Maine Trailer President William Peters stated:  “Thanks to FAME’s assistance, Maine Trailer will be able to strengthen its financial position, maintain good-paying jobs in the state, and hopefully grow.” 

Also at today’s meeting, FAME approved low-cost financing for Gulf of Maine Properties, Inc. and Gulf of Maine Research Institute to help refinance a portion of the costs of construction of their facility in Portland.  FAME agreed to issue non-recourse or “conduit” tax-exempt bonds in an amount not to exceed $3.9 million through its Revenue Obligations Securities Program.  The project does not carry any liability or credit enhancement on the part of FAME, and will be privately placed with Peoples United Bank. 

Finally, the Board approved extending through December 31, 2011 FAME’s set-aside of up to $1.5 million in its Economic Recovery Loan Program for low-interest food processing loans. 

Items of Interest for September, 2011:

Welcome Jessica Whittier

Training for Financial Aid Staff

Sub-grants Awarded

The Finance Authority of Maine (FAME) recently notified fifteen Maine schools and non-profit education organizations that they have been chosen to receive sub-grants totaling $674,748 through the Maine College Access Challenge Grant (MCACG) 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.  All recipients and their project descriptions are listed online at FAME’s Web site: www.famemaine.com

Grant recipients include Eastern Maine Community College in Bangor, which will offer free placement assessment and academic skill development opportunities to underprepared high school seniors at rural high schools in Penobscot, Piscataquis, Waldo, and Hancock Counties; Franklin County Adult Education, which will address growing wait lists of residents seeking to enter their college access system; and the Maine Development Foundation, which will expand its Maine Employers’ Initiative to increase services linking employers and their employees to education resources and to encourage Maine’s working adults to take advantage of educational opportunities, including degree completion.

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 2012.  Available monies are to be used by states on efforts to increase college access and success among underserved student populations.  FAME will provide a one-third required match, which equals $750,000 per year.  For the 2011-2012 academic year, the funds will be divided between college access services and sub-grants to various partner organizations across the state.

“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. 

To accomplish its purposes, MCACG  focuses 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 FAME college access and financial education team includes professionals who not only work with high schools,  middle schools and elementary schools, but also coordinate with colleges, adult education centers, and college access programs to reach students and parents.  The free services provided are available to all Maine citizens, regardless of income.

On September 16, 2011, the U.S. Department of the Treasury and Maine Governor Paul LePage announced the approval of Maine’s State Small Business Credit Initiative (SSBCI) application (Governor’s press release).  The $13.2 million in funds will help create new private sector jobs and spur more than $132 million in additional small-businesses lending in that state.  The funding will take place in three stages, with the first allocation of $4.3 million now taking place.

The SSBCI funds will be used to recapitalize three existing, successful programs:

1. $7 million will be available to a group of 15 regional economic development agencies to make loans to businesses in their area. See FAME’s Regional Economic Development Revolving Loan Program.

2. $3.2 million will be allocated to FAME for the Economic Recovery Loan Program – loans of up to $1 million that meet the program’s underwriting requirements, which can be used statewide;

3. $3 million will be allocated to the Small Enterprise Growth Fund – Maine’s state-run venture capital fund.

For more information, please contact FAME’s Bob Corey at (207) 620-3524.

Items of Interest for August, 2011:

September is College Savings Month

College Goal Maine

EPIC Web Site Portal

The Finance Authority of Maine (FAME) recently was notified by the U.S. Department of Education that Maine has been awarded a $1.5 million College Access Challenge Grant for Fiscal Year 2012. 

The Maine College Access Challenge Grant (MCACG) Program is part of a U.S. Department of Education program designed to significantly increase the number of underrepresented students who enter and remain in postsecondary education.

“FAME is pleased to again have been chosen as the Maine recipient of this important grant,” stated Beth Bordowitz, Chief Executive Officer of FAME.  “We look forward to partnering with other organizations across the state to help Maine students and families achieve their postsecondary education goals.” 

Since 2008, FAME has been the designated state administrator of the program.  FAME in turn has collaborated with a variety of statewide organizations and made sub-grants to carry out the purposes of the grant.  Among other things, FAME and its partner sub-grantees have provided Maine students and families information about the benefits of a college education, college opportunities, and college and career planning; informed students and families about financial aid options for college, financial literacy, and debt management; performed outreach activities for students at risk of not continuing their education; assisted families in completing the FAFSA form; provided need-based grants to students; provided professional development for guidance counselors at middle and high schools and financial aid administrators and college admissions counselors at colleges; and increased its commitment to and focus on college access services for adult learners.

During the 2010-2011 academic year, more than 30,000 Maine students and families were assisted by FAME staff.

Grant funds total $1.5 million per year for five years.  FAME will provide a one-third required match, which equals $750,000 per year.  For the 2011-2012 academic year, the funds are expected to be divided between college access services and sub-grants to various partner organizations across the state.

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

Additional information on the Maine College Access Challenge Grant Program is available on FAME’s Web site, www.famemaine.com.  Questions about the program should be directed to Angela Dostie at (207) 620-3542 or by e-mail at adostie@famemaine.com.

Items of Interest for July 2011:

NASFAA Update

College Access and Financial Education Year End Numbers

Legislative Updates

The Board of Directors of the Finance Authority of Maine (FAME) today approved a $750,000 direct loan to Lobster Web, LLC (Lobster Web) to aid with the refurbishment of the former Stinson Cannery in Prospect Harbor as the company begins to process bait and lobster.  The Board also approved a $300,000 direct loan, as well as commercial loan insurance, to B&B Precise Products, Inc. (B&B), a Benton-based global precision machining company.  FAME’s actions will help to immediately create and retain approximately eighty-five jobs in Hancock and Kennebec Counties, with more hires expected in the coming years.

“FAME is pleased to assist with the redevelopment of the former Stinson Cannery in Prospect Harbor, as well as with the continued growth of B&B’s global sales.  The success of these businesses is essential to the economies of the surrounding communities and the state as a whole,” stated FAME Board Chair Glenn Lamarr. 

FAME approved a $750,000 direct loan to Lobster Web to help it purchase and install machinery and processing equipment, as well as to make structural improvements.  The company acquired the former cannery facility from Bumble Bee Foods, Inc. in February 2011.  Lobster Web will process lobster and bait, and provide packaging and shipping services to global customers, including cruise ship lines, restaurant chains, and supermarkets.  It plans to aggressively market its products via the Internet.  Lobster Web intends to create approximately forty-five jobs during its first year of operations and more in subsequent years. 

Lobster Web President and Chief Executive Officer Antonio Bussone stated:  “Thanks to FAME’s assistance, we expect to re-employ many of the former Stinson Cannery workers previously laid off by Bumblebee Foods.  Over 80 percent of all domestic seafood landings that are either cooked or frozen are processed in plants located in Canada.  Lobster Web will help Maine to better compete with Canadian seafood processors and add value in-state to Maine seafood.” 

Also at today’s meeting, FAME approved a $300,000 direct loan and loan insurance on two loans by Bangor Savings Bank (65 percent pro-rata insurance on a $1.2 million term loan and 40 percent pro-rata insurance coverage on a $750,000 line of credit) for B&B Precise Products, Inc.  FAME’s actions will help the company create five to ten additional jobs and provide it with working capital and debt service relief through refinancing as it continues to grow.

B&B is located in Benton and was established in 1990 as a machine shop with two employees.  Today it is an ISO 9001:2000/AS9100 REV B Certified Precision Manufacturer employing thirty-five individuals.  B&B provides solutions integration and total products solutions to its customers ranging from concept design and rapid prototyping to high-volume production and finish assembly.  The company’s customers include global companies in the aerospace, defense, homeland security, semiconductor, and energy sectors.

“Our company very much appreciates FAME’s partnership and support, which will enable us to grow and compete in the global economy,” stated Wellman “Will” Rood, President of B&B Precise Products, Inc.

The Finance Authority of Maine (FAME) is currently displaying the works of Larinda Meade, an artist from Portland who specializes in printmaking. 

FAME Chief Executive Officer Beth Bordowitz stated:  “FAME is pleased to recognize Larinda and to help bring public attention to Maine artists who enrich our society.” 

Meade interprets the landscapes around her using printmaking techniques, especially etching and drypoint.  She attended the State University of New York (SUNY) Potsdam and graduated with a studio arts degree in 1973.  After teaching art at the secondary level for several years and participating in graduate art classes focused on printmaking and photography, Meade also worked in the fields of adult education, workforce development and administration.  Meade recently exhibited her work in Amherst, MA; Galway, Ireland; New Zealand; and Portland, Maine.

Meade has participated in printmaking classes at the Maine College of Art and at Zea Mays Printmaking Studios in Florence, MA.  She enjoys discovering ways of creating non-toxic and less toxic intaglio printmaking.  Meade currently uses mono printing and drypoint while continuing to explore acrylic hard grounds and acrylic aquatint.  Her works can be viewed at www.LarindaMeade.com.

FAME strives to bring visibility to the achievements of Maine artists by providing opportunities to exhibit their artwork and to inspire passion about art in others.  The public may view the exhibition for free at FAME’s Augusta office until mid-September on Mondays through Fridays from 8:00 a.m. to 5:00 p.m.  FAME’s office is located near the Augusta Civic Center at 5 Community Drive, Augusta, Exit 112 off I-95.  A reception with Meade is planned at FAME’s office on Thursday, July 21 from 4:30-7:30 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 June 2011:

Harold Alfond College Challange

Legislative Update

State Budget

Items of interest for May, 2011:

College Goal Sunday Award

State of Maine Grant EFC Cut-off for 2010-2011

Educators for Maine Selection 2010-2011

The Finance Authority of Maine (FAME) today announced the recipients of $975,000 in food processing grants to be used for Maine fishing and agricultural enterprises.

Grant recipients are: Stonington Sea Products (seafood sales and processing); Blake’s Custom-Cut Meats of Alexander (slaughter house); Northern Girl, LLC of Van Buren (vegetable processing); Portland Shellfish Co., Inc. (seafood processing and distribution); Somerset Grist Mill of Skowhegan (grain milling); and The Gelato Fiasco, Inc. of Brunswick (gelati manufacturing/sales). The grants are expected to help create and retain 165 Maine jobs.

Created by the 124th Maine Legislature and funded by Maine voters through a general obligation bond approved in June 2010, the Maine Food Processing Grant Program provides grants for Maine food processors to support the creation, retention, and growth of fishing, agricultural, and dairy enterprises. 

Successful applicants for the competitive funds were required to be food processors located in Maine that demonstrated how the funds will be used to benefit the grantee, Maine’s food processing industry, and/or the community at large. FAME prioritized applications based on the economic feasibility and viability of the projects; the likely benefits of the grants to the financial success of the enterprises; the likely benefits of the grants toward the goals of creating and/or retaining Maine jobs; and the likely benefits of the grant to areas of the state having high areas of unemployment. 

FAME Chief Executive Officer Elizabeth Bordowitz stated:  “FAME is particularly pleased with the diversity of the grant recipients, which process seafood, vegetables, meat and even make gelati. The companies range from new ones with few employees to well-established companies with many employees. The competition was keen and we regret that we did not have sufficient funds for all of the exciting food processing projects that Maine entrepreneurs are ready to pursue. We believe these grants will, as the Maine Legislature and voters intended, help Maine’s food processing industry grow, succeed, and provide good jobs in this challenging economy.”

“Our company is thrilled to receive the much-needed grant. We intend to use the monies to purchase equipment that will enable us to start up the business and create six jobs in Northern Aroostook County,” stated Marada Cook, President of Northern Girl, LLC.

Stonington Sea Products, which engages in seafood processing and sales, also received a grant. Adelbert Gross, company manager, stated: “We will put the grant monies back into the community to hire employees and employ local vendors such as contractors and truckers as we grow our business,” he said.

Additional details concerning the grant awards may be viewed on FAME’s Web site at www.famemaine.com

The Board of Directors of the Finance Authority of Maine (FAME) today approved a loan insurance program designed to assist more than 200 independent Maine   grocers that were negatively affected by the recent closure of their vendor, Associated Grocers of Maine.

 In cooperation with various Maine lenders, FAME will provide up to 50% loan insurance on loans made by financial institutions to local grocery stores with an outstanding account receivable due Associated Grocers of Maine.  The Gardiner-based retail cooperative is now in receivership, and many small grocers are attempting to locate and work with a new food distributor.  FAME’s program may help by assisting these grocers access financing they may need to make the transition to a new supplier of their inventory.
 
FAME’s commercial loan insurance program insures a portion of a loan to a business made by a participating financial institution.  The OnLine Answer (OLA) Program allows a lender to apply online to FAME and receive an almost immediate answer.  This successful program, in operation for five years, accounts for approximately 75% of the commercial loan insurance loans closed annually by FAME. 

FAME Board Chair Glenn Lamarr stated:  “FAME is pleased to assist Maine’s mom-and-pop community grocers, who were caught by surprise when their vendor closed and its bank called for immediate payment of all outstanding accounts receivable.  We hope this program will provide local stores with the ability to attract needed capital in order to remain in business and help preserve Maine jobs during this difficult time.” 
    
 “FAME hopes that our swift-responding OLA program will enable Maine’s local grocers to remain in business during this sudden disruption.  OLA is a faster, easier, and lower cost way for our partner lenders to apply for loan insurance.  Lenders using OLA often receive an answer in minutes, if not sooner,” stated FAME Chief Executive Officer Elizabeth Bordowitz.

Items of Interest for April, 2011:

Maine Financial Aid

Robert C. Byrd Honors Scholarship Program

Harold Alfond College Challenge Casting Calls

The Board of Directors of the Finance Authority of Maine (FAME) recently approved commercial loan insurance to help Woodland Pulp LLC convert its Baileyville mill from oil to natural gas and help retain hundreds of jobs in Washington and Aroostook Counties.

FAME approved 90% pro-rata insurance coverage on a $5,278,000 Machias Savings Bank term loan for Woodland Pulp LLC to provide longer-term financing after completion of a natural gas pipeline connector and the conversion of the mill from oil to natural gas. The project will take advantage of the Maritimes & Northeast natural gas transmission main that originates at Sable Island in Nova Scotia and crosses New Brunswick into Maine.  The line crosses the border at the St. Croix River approximately 4.5 miles north of the Baileyville pulp mill and was installed in 2000. 

FAME Board Chair Glenn Lamarr stated:  “FAME is pleased to assist Woodland Pulp and Machias Savings with financing for the mill’s conversion to natural gas.  We expect the project to help make the mill more competitive, stimulate the local economy, improve the environment, and preserve and grow Maine jobs.”

The Baileyville mill employs 310 people directly.  It is estimated that the mill supports another 1,800 jobs in Washington and Aroostook Counties related to logging, trucking, and other products and services.  The company exports tons of pulp per year through the deepwater port at Eastport. 

“Woodland Pulp very much appreciates FAME’s swift and substantial support of our conversion plans.  The project will help make the mill more competitive, profitable, and eco-friendly,” stated Bert Martin, Director of the Woodland Mill in Baileyville.  “The mill is an economic engine for Washington County and Maine, and the planned improvements will help us compete effectively in the global market.”      
    
In addition to the financial savings for the mill, the conversion to natural gas will lead to significant environmental improvements.  Particulate, sulphur dioxide (SO2), carbon dioxide (CO2), and nitrous oxides (NOX) emissions will be reduced significantly, which will improve the environment and be considered a favorable change to the mill’s air license.

The FAME Board also took actions at its March meeting that it announced today, as well. 

FAME announced that it has increased its maximum loan insurance coverage from 60% to 75% in the OnLine Answer (OLA) Program for Maine lenders.  This successful program, in operation for five years, accounts for approximately 75% of the commercial loan insurance closed annually by FAME.

“OLA is a faster, easier, and lower cost way for our partner lenders to apply for loan insurance.  Lenders using OLA often receive an answer in minutes, if not sooner,” stated FAME Chief Executive Officer Elizabeth Bordowitz.

“Farm Credit of Maine has taken advantage of FAME’s improved OLA product and we really appreciate the increased coverage and ease of use,” stated Matthew Senter, Regional Portfolio Manager for Farm Credit of Maine.

The FAME Board also has approved an increase in the maximum dollar amount available through 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.  The new maximum loan amount for a single loan relationship will be increased from $500,000 to $750,000.

Finally, the FAME Board has authorized the setting aside of up to $1,500,000 of Economic Recovery Loan Program funds for loans related to food processing in Maine.  Although unrelated to the Maine Food Processing Grant Program that FAME administers, these monies have been earmarked due to the apparent need for more funds for such projects.  FAME received 28 requests totaling approximately $5.2 million for Maine Food Processing Grants.  Available grant monies total only $1 million, however.  Like the grant program, maximum food processing loans through ERLP will be limited to $300,000; will offer maximum terms of five years and a prime interest rate; and allow no construction financing.  The loans will follow all other general guidelines of the Maine Food Processing Grant Program.

Despite continued economic challenges and high unemployment rates, the Finance Authority of Maine (FAME) continues to maintain a cohort default rate that is below the national average of 7.0%   According to data recently released by the U.S. Department of Education, FAME’s federal Fiscal Year 2009 draft cohort default rate held steady at 6.1% of borrowers who entered repayment during federal Fiscal Year 2009, which is the same rate posted by the agency in the prior year. 

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 2011.  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 expanded college access, financial education and debt management services that support financial aid offices and educate borrowers.  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 continue to be proud of our low default rate, especially in these challenging economic times.  But we are working hard to reduce student default rates further.  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 believes strongly that financial education is the cornerstone of debt management and default prevention.  Consequently, the agency will once again recognize April as Financial Literacy Month by offering a variety of financial education and financial-aid related workshops to students across the state.

FAME also is a major sponsor and contributor to the second annual financial literacy summit for Maine teachers, administrators, counselors and others.  The summit, entitled “Fostering Financial Literacy in Maine Schools,” will be held at the Augusta Civic Center on Thursday, May 12, 2011 from 8:00 a.m. to 3:45 p.m.  For more information on the financial literacy summit, please visit:

http://events.r20.constantcontact.com/register/event?llr=x88czdeab&oeidk=a07e3fk0yycc4f93129

Items of Interest for March 2011 - Correction:

FAME FY2009 Draft Cohort Default Rate

Tales From the Road

Harold Alfond College Challenge Casting Calls

Items of Interest for February 2011:

Maine Financial Aid

State Grant Review

NextGen Grants

Items of Interest for February 2011:

FAME News

Meet Our New Commercial Loan Officer

Featured Program

The Maine Red Claws, Portland Pirates and Portland Sea Dogs mascots gathered today at Glenburn Elementary School to announce their partnership with the NextGen College Investing Plan® (NextGen). 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 NextGen.

With higher education 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.

“As the cost of college rises each year, the power of these scholarships and NextGen 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 as part of the team’s annual NextGen Field of Dreams scholarship contest. “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 encourage parents to look into investing for college through NextGen. We’re thankful that the Maine Red Claws and the Portland Pirates are joining the Sea Dogs 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,” Iacuessa added.

Each individual team decides the criteria for the scholarships. In conjunction with their Most Improved Student Program, the Portland Sea Dogs award a $1,000 NextGen Field of Dreams Scholarship to one deserving student in each of three grade levels: K-5, 6-8, and 9-12. Students are asked to submit an essay on a topic selected by the Sea Dogs (for the older contestants) or submit a picture (for the younger contestants). Winners are selected prior to the Sea Dogs’ NextGen Field of Dreams game and awarded the scholarship at the game.

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

“This is a terrific opportunity for the Portland Pirates to partner with NextGen in a scholarship program that 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 applicants and we will be encouraging all students to enter this exciting 3-Stars Scholarship Program.”

The Red Claws are asking teachers to nominate 4th grade students in whom they see potential. Five students will be chosen to receive a $1,000 High Five Scholarship from the Red Claws. “Our hope is that these scholarships will provide that spark that will make them think ‘I can go to college, too’ and will enable their parents to help make that goal come true,” said John Jennings, Red Claws President and General Manager.

”Research shows that children with college funds are more likely to envision themselves going to college and by 4th grade, have already started to formulate an idea that they are or are not college material,” said Jennings. “NextGen helps families make the dream of attending college possible.”

Since its launch in 1999, the breadth of investment choices through NextGen has increased from just one option to now over 39 investment portfolios between the NextGen Client Direct and Select Series. There are many benefits to investing in the NextGen Plan, including potential tax savings, control over choosing your investment portfolio(s), low investment minimums and a range of choices. Visit www.famemaine.com for more information on how to enroll.

About the NextGen® Plan

The Maine College Savings Program, also known as 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 age 18 or older with a valid social security number or U.S. taxpayer identification number can open an account, regardless of income or residency, and assets can be used at any U.S. accredited post-secondary institution. Matching grants are available to eligible accounts.

About the Finance Authority of Maine (FAME)

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and higher education opportunities. To learn more about FAME, please visit www.famemaine.com.

Please remember there’s always the potential of losing money when you invest in securities.

The NextGen Plan is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in the NextGen plan, request a NextGen College Investing Plan Program Description from your Maine bank or financial advisor, or call FAME at 1-800-228-3734 and read it carefully.

The Program Description contains more complete information, including investment objectives, charges, expenses and risks of investing in the NextGen plan, which you should carefully consider before investing. You also should consider whether your home state or your designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 plan. Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, member SIPC, is the program manager and underwriter.

Items of Interest for January 2011:

College Goal Maine

Tales from the Road

In the News 

The Finance Authority of Maine (FAME), which administers state and federal college grants and scholarships, is pleased to announce that College Goal Sunday’s dates and locations will be expanded this year as part of a new College Goal Month to better meet the needs of Maine students and families.  In addition to ten regional events to be held Sunday, January 30th, thirty-four other sites will be offering assistance during the months of January and early February.  

For the past seven years, College Goal Sunday has drawn thousands of families to locations all over the state in late January for free workshops to help complete the Free Application for Federal Student Aid (FAFSA), which is required by most educational institutions for financial aid consideration.

FAME recently announced that the program is expanding and will no longer be a one-day event.  Rather, the entire month of January will be deemed “College Goal Month,” dedicated to helping students and families complete the FAFSA.  Similar workshops also will take place in early February.
 
All locations will use computer labs, allowing participants to access and, in many cases, complete the FAFSA online during the seminar.  Line-by-line assistance will be provided by financial aid professionals from Maine colleges and universities.  All attendees are encouraged to bring recent tax information or estimates.  Residents of all ages who are interested in college or post secondary education should consider attending.
 
“FAME is pleased to be offering Maine families and students more convenient options for completing this important first step to get financial assistance to pursue higher education,” said FAME Chief Executive Officer Beth Bordowitz.  She noted that less than 40 percent of Maine’s graduating high school seniors file the FAFSA form by May 1st, the deadline for many state education grants.  “Many financial aid applicants are filing too late for grants, loans and scholarships,” said Bordowitz.  “FAME wants to encourage earlier applications so Maine families and students can take full advantage of all available resources.”
 
Financial assistance can come from a variety of resources, including grants, scholarships, federal student loans, and work-study jobs.  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.