FAME News

At its April 18, 2013 meeting, the Board of Directors of the Finance Authority of Maine (FAME) approved financing for three businesses in the transportation, tourism and manufacturing sectors of Maine’s economy. The businesses are Isherwood Enterprises, Inc. d/b/a Custom Coach and Limousine; Mega Industries Realty, LLC and Mega Industries, LLC (co-borrowers); and Rood Enterprises, LLC and B & B Precise Products, Inc. (co-borrowers). FAME’s actions will help these companies create and retain approximately 171 Maine jobs.

“FAME is pleased to support these Maine companies and their plans for continued operation and expansion,” stated FAME Chief Executive Officer Beth Bordowitz. “We are beginning to see signs of an economic recovery taking hold in Maine and our actions will help these businesses to position themselves to create and retain good Maine jobs.”

Custom Coach and Limousine is a Portland-based, family-owned and operated company that was founded in 1988 with one mini-coach. Today the company employs fifty people and operates a fleet of over forty-five vehicles. FAME will provide loan insurance on various Camden National Bank loans to the company, which will help lower the cost of debt. 

FAME also approved a direct loan of $180,000 through its Economic Recovery Loan Program to Mega Industries. The company manufactures high-power, low-frequency microwave components for scientific, military, and commercial applications. Mega Industries will use the funds to help expand its existing manufacturing facility in Gorham. The company expects to create eight new jobs and retain forty-six jobs as a result of FAME’s financing.

“Mega Industries is grateful to FAME for its assistance as we expand our operations and grow our workforce,” stated Peter Anania, President of Mega Industries, LLC and Anania & Associates Investment Co.

Finally, FAME also has agreed to insure three separate loans by Androscoggin Bank to B & B Precise Products, Inc. The financing will enable the company to access working capital and purchase two new machines for its manufacturing facility. 

B & B Precise Products, Inc. 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 C certified precision manufacturer employing fifty-seven individuals. The company’s customers include global companies in the aerospace, defense, homeland security, semiconductor, and energy sectors. FAME’s financing is expected to help the company create an additional eight-to twelve jobs. 

“Our company very much appreciates FAME’s support. FAME’s actions 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 recognizing April as Financial Literacy Month by offering a variety of statewide initiatives and educational workshops intended to promote the importance of financial education to Maine citizens.

FAME’s College Access and Financial Education (CAFÉ) Team will be visiting schools throughout Maine to present a variety of topics intended to improve the financial capability of Maine students. From kindergarten to college and beyond, FAME offers a diverse selection of financial education initiatives to Maine students.

FAME’s CAFÉ Team annually presents financial education sessions to several thousand Maine students. These sessions are offered directly in the school or college setting through presentations, games and a variety of hands-on learning activities.  

 
FAME also partners with American Student Assistance (ASA) to revolutionize how Maine college students manage their finances and student loans. Through the innovative educational membership program SALT®, powered by ASA and administered through a pilot program created by FAME, Maine college students and alumni receive financial education and pro-active debt management education and services free-of-charge. FAME launched the pilot at Husson University last fall, with an additional nine institutions having signed-on to the program since then. The pilot is funded by the Maine College Access Challenge Grant, a federal grant administered by FAME. Students should contact their college directly for more information about SALT.

“FAME’s financial education efforts have become a key and growing part of our mission. We provide outreach to schools throughout the state, from Aroostook to York Counties, in order to help prepare Maine students for financially prudent futures,” stated FAME Chief Executive Officer Beth Bordowitz. “FAME is a proud co-sponsor of the upcoming financial literacy conference for education professionals.” 

“Fostering Financial Literacy in Maine Schools Conference,” the fourth annual financial literacy conference for Maine teachers, administrators, counselors and others, will be held at the Augusta Civic Center on May 2, 2013 from 8:00 a.m. to 4:00 p.m.  FAME again is sponsoring the conference along with the Maine Office of Securities, the Maine JumpStart Coalition, the Maine Credit Union League, and others. FAME staff also will be presenting at the event, which is designed to help Maine teachers develop strategies for educating students about the basics of earning, saving, spending and investing money.

For more information on the financial literacy conference, please visit:

http://jumpstart.org/states-maine.html

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

The partnership between the Maine Departments of Environmental Protection and Agriculture, Conservation and Forestry, the Finance Authority of Maine and the Maine Municipal Bond Bank will support implementation of projects that reduce agricultural impacts to water resources.

AUGUSTA - Maine's Departments of Environmental Protection and Agriculture, Conservation and Forestry are helping farmers who want to do their part to protect water quality by releasing $3 million for agriculture improvements loans.

The two State departments, in partnership with the Finance Authority of Maine (FAME) and the Maine Municipal Bond Bank, have expanded the Nutrient Management Loan Program, developed to fund construction of containment and handling facilities for milk room and manure waste. Since its inception in 1999, that program has made 14 loans totaling $1.3 million.

The DEP-administered Clean Water State Revolving Fund will provide up to $3 million for FAME to finance the loans with farmers able to borrow up to $450,000 at a fixed interest rate of 2 percent for up to 20 years.

"Agriculture is a $1.5 billion industry in Maine, and the thousands of people who work in it have the important responsibility of stewarding 1.25 million acres," said Governor Paul R. LePage. "I thank these two agencies for coming together with FAME and the bond bank to increase the sustainability of Maine farms and our state. This expanded loan program is good news for our natural resources and for our economy."

Loans will fund agricultural projects that mitigate nonpoint source pollution by reducing or treating agricultural runoff and improving or maintaining water quality through irrigation system improvements and the use of irrigation reservoirs to maintain in-stream flows and water levels.

Eligible improvement projects include repairs to or installation of roof runoff structures, water and sediment control basins, composting facilities, anaerobic digesters and irrigation system water conservation. DACF will review the proposed projects for eligibility and to ensure they are completed in accordance with USDA's Natural Resources Conservation Services design criteria.

"Maine's farmers know firsthand the great value of clean water and the importance of minimizing agricultural runoff," said DEP Commissioner Patricia W. Aho. "Thanks to our increased funding commitment, these important partners in protection will be able to better steward the land and water they depend on for their livelihood while investing in the future of the farms that feed Maine people and our economy."

"These loan opportunities will lead to investments in agricultural infrastructure," added DACF Commissioner Walt Whitcomb. "Long-term agricultural viability protects Maine water resources."

Since 1989, the Maine Clean Water State Revolving Fund has provided over $650 million in low-interest loans for projects that improve water quality and protect environmental and public health, largely to publicly owned wastewater treatment facilities.

For more information on Maine's Nutrient Management Loan Program, visit http://www.maine.gov/agriculture/narr/ or contact Maine Department of Agriculture, Conservation and Forestry's Nutrient Management Coordinator Mark Hedrich at (207) 287-7608 or mark.hedrich@maine.gov.

For more information on Maine's Clean Water State Revolving Fund, visit http://www.maine.gov/dep/assistance/grants-loans or contact Maine Department of Environmental Protection Engineering Services Manager John True at (207) 287-7808 or john.n.true@maine.gov.

Maine “dream-maker” and philanthropist Harold Alfond would have celebrated his 99th birthday on March 6th. His legacy lives on in our state through the Alfond Scholarship Foundation, which to date has awarded over $9 million - or 18,000 $500 Harold Alfond College Challenge Grants - to Maine babies – so they can dream big, too.

The Alfond Grant is awarded to a NextGen College Investing Plan® account administered by the Finance Authority of Maine (FAME).  Opening a NextGen® account to receive the grant can even be done online in about 15 minutes. The grant is available to any Maine resident baby for whom a NextGen account has been opened by their first birthday.

Harold Alfond was well-known for challenging wider involvement to accomplish a certain goal, and the Alfond Scholarship Foundation works with many community and hospital groups to encourage more parents to open NextGen accounts and receive the $500 grant.

Central Maine Medical Center Pediatrics, for example, had tried many things to encourage patients to sign up for the Alfond Grant and most recently installed an on-line application kiosk for parents to sign up right in the waiting room. “We have been reminding parents about the $500 opportunity for the past four years, and they often say they will get to it when they have time. It’s such a great opportunity and we want to help families in as many good health and aspirational aspects as we can,” said Pam Cullet, Practice Manager.

There are no income limits and no contributions are required to receive the $500 grant. Funds in the NextGen account may be used to pay for qualified higher education expenses at any accredited post-secondary school, including four-year and two-year public and private colleges, certificate programs, trade schools, and even graduate schools.1

Families of Maine babies may apply for the grant by visiting http://www.500forbaby.org or calling FAME at 1-800-282-3734 and completing an application by their child’s first birthday.

About the Alfond Scholarship Foundation

The Alfond Scholarship Foundation is a nonprofit corporation established specifically to sponsor and support the Harold Alfond College Challenge. The foundation is a partnership of organizations and individuals who truly embrace Mr. Alfond’s philosophy, and includes representatives from the Maine Compact for Higher Education, FAME, the University of Maine System, the Maine Community College System, the Maine Community Foundation, the Mitchell Institute, and at-large members that include representatives from MaineGeneral Health and the Maine Hospital Association. To learn more about the Harold Alfond College Challenge, please visit www.500forbaby.org.

About the Finance Authority of Maine (FAME)

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine people and businesses pursue educational and business opportunities. Established in 1983, FAME is committed to innovative, flexible financial solutions that address the needs of Maine individuals and companies in a changing economic landscape. FAME administers the Harold Alfond College Challenge and the NextGen College Investing Plan®. To learn more about FAME, please visit www.famemaine.com

1 To be eligible for the favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, withdrawals must be “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax, as well as applicable state and local income taxes.

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

The Alfond Grant is awarded to a NextGen account. NextGen is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in NextGen, request a NextGen 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 NextGen, which you should carefully consider before investing. You also should consider whether your 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.

The Board of Directors of the Finance Authority of Maine (FAME) has approved financing for East Boothbay-based Hodgdon Shipbuilding, LLC and two New Markets Capital Investment Program Tax Credit certificates related to investments in GNP Maine Holdings, LLC, an entity related to the former Great Northern Paper mills in Millinocket and East Millinocket.  The projects are expected to help to create and retain 448 Maine jobs. 

At its December 20, 2012 meeting, the FAME Board approved a $300,000 Economic Recovery Loan to Hodgdon Shipbuilding, LLC.  The company plans to utilize the funds to construct a 10.5 meter Limousine Tender for use with mega-yachts.  The proposed model tender will serve as a demonstrator for the company at popular yacht shows around the globe. 

Hodgdon Shipbuilding has been building high-quality yachts and other sea-going vessels in East Boothbay since 1816.  It is currently the oldest, continuously operated boat-building company in the United States.  FAME’s action will help the company to create and retain approximately 139 Maine jobs. 

Hodgdon Group, LLC president and chief executive officer, Timothy Hodgdon, stated:  “Thanks to FAME’s assistance, Hodgdon Shipbuilding will be able to proceed with construction of a demonstrator tender that should lead to increased production and jobs in the state.  We are grateful for FAME past and current assistance with our company’s growth and success.” 

FAME also approved the certification applications of two community development entities, Stonehenge Community Development LXI, LLC, and Enhanced Capital New Market Development Fund X, LLC, under the Maine New Markets Capital Investment Program.  The action is related to investments by each entity in GNP Maine Holdings, LLC, a company related to Great Northern Paper, LLC, in Millinocket and East Millinocket.  These are the first certification applications to be approved under the new program, which was created by the 125th Maine Legislature to be administered by FAME. 

FAME authorized the issuance of a tax credit certificate for Enhanced Capital in the amount of $8,125,260, and a tax credit certificate for Stonehenge Community Development in the amount of $7,800,000. 

In doing so, the board determined that both entities have made or will make investments required under the statute in the low-income community of East Millinocket.  These investments are related to capital expenditures at the mill and are expected to help create and retain 309 Maine jobs in the Katahdin region.

The Maine New Markets Capital Investment Program provides refundable state tax credits of up to 39 percent to investors in qualified community development entities (CDEs) that reinvest in certain businesses in eligible low-income communities in Maine.  The program is modeled after the federal New Markets Tax Credit Program, and is administered by the Finance Authority of Maine, in cooperation with Maine Revenue Services and the Maine Department of Economic and Community Development. 

“FAME is pleased to support these storied Maine companies with their plans to expand make improvements, and create and retain Maine jobs,” stated FAME Board Chair Susan Snowden. 

After the monthly board meeting, FAME hosted Gov. Paul LePage for an informal holiday visit with members of the Harold Alfond Scholarship Foundation and FAME staff.  FAME administers the Harold Alfond College Challenge Grant, which provides a $500 grant to all Maine resident babies under one year of age who open a NextGen College Investing Plan® account.  The Governor toured FAME with Chief Executive Officer Beth Bordowitz, Alfond Scholarship Foundation Chair Larry Pugh, Harold Alfond Foundation Chairman Gregory Powell, and others, to thank FAME employees for their assistance in making the program a great success.  To date, the program has enrolled over 15,000 Maine babies with college savings accounts.

The Finance Authority of Maine (FAME) is currently displaying photography by Dennis Griggs of Topsham.  Dennis owns Tannery Hill Photographic Laboratory in Topsham and his clients include the United States Postal Service, Bath Iron Works, Greater Portland Landmarks, the Maine Development Foundation, local banks and advertising agencies.  Dennis received formal training in Photographic Science at Rochester Institute of Technology and also was a photographer at Brunswick Naval Air Station.  

FAME Chief Executive Officer Beth Bordowitz stated:  “FAME is pleased to host Dennis’s photography, which adds vibrancy to our office while helping to bring public attention to Maine artists and photographers who enrich our communities.” 
In addition to serving as one of New England’s foremost commercial photographers, Dennis regularly attends “casting calls” on behalf of the Harold Alfond College Challenge, which provides a $500 grant to all Maine resident babies under one year of age who open a NextGen College Investing Plan® account.  The babies are offered free professional photographs, which are taken by Dennis.  A collection of featured photographs of these babies are part of the current display at FAME. 

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-January 2013.  FAME is open 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.       

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.

The Finance Authority of Maine (FAME) held its annual meeting and awards event, Showcase Maine, on Tuesday, November 13, 2012, at Portland’s Holiday Inn By The Bay.

Showcase Maine is a celebration of the many successful businesses and higher education initiatives happening within Maine. 

The evening featured a reception, including a showcase of exhibits by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Robert C. Pozen. 

Pozen is a senior lecturer at Harvard Business School and a senior fellow at the Brookings Institution.  He previously served as chair of MFS Investment; vice chair of Fidelity Investments; and president of Fidelity Management and Research Company.  Pozen offered post-election reflections on the U.S. economy, including the likelihood of Congress avoiding the impending “fiscal cliff.”

“We enjoyed celebrating the successes of the past year with our partners in Maine’s business and higher education communities,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “We are proud to showcase Maine businesses and educational organizations, and it was a privilege for us to honor some of Maine’s innovative leaders.”

This year’s award recipients included: 

• Anania & Associates Investment Company, LLC of Portland (Business at Work for Maine Award):  Anania & Associates Investment Company is a private investment fund that invests in small, well-managed companies in the manufacturing, service and distribution sectors.  Over the years it has successfully utilized the FAME-administered Maine Seed Capital Tax Credit Program to increase out-of-state investment in Maine.  Some businesses in Anania & Associates’ portfolio have used other FAME programs to expand into new product lines.

• Junior Achievement of Maine (Education at Work for Maine Award):  JA is a non-profit organization dedicated to educating Maine students in grades K-12 about entrepreneurship, work readiness, and financial literacy through experiential, hands-on programs.  In the 2011-12 academic year, JA delivered programs to 535 Maine classes and 9,915 students in 112 Maine schools.

• Camden National Bank (Financial Institution of the Year Award):  Camden National Bank frequently partners with FAME to provide financing to Maine businesses.  It also 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. 

• Machias Savings Bank (Financial Institution of the Year Award):  Machias Savings Bank actively partners with FAME to provide financing to local businesses, including lobstermen and the fishing industry.  In 2011, Machias Savings employees donated volunteer labor by participating in many worthy causes, from coaching youth sports to serving on non-profit boards.  During the same period, the bank made contributions to various organizations, as well.

• Hon. David Richardson of Carmel (Dirigo Legislative Champion Award):  Richardson, a state representative from Carmel, was co-chair of the 125th Maine Legislature’s Joint Standing Committee on Education and Cultural Affairs.  He is a strong supporter of FAME’s mission, especially with respect to providing higher education opportunities for all Maine students.

“Our company, which has collaborated with FAME on financing, enjoyed exhibiting our handsewn shoes before the dinner and making new connections.  We also enjoyed hearing the positive testimonials by the various award winners, as well as the informative remarks by Bob Pozen,” stated Kevin Shorey, partner in Quoddy, Inc. of Perry and Lewiston.

Prior to the dinner and awards ceremony, the FAME Board met and re-elected the following individuals as officers for 2013:  Susan Snowden of Scarborough, Chair; Cheri Walker of Falmouth, Vice President; and Patrick Murphy of Portland, Treasurer. 

Items of Interest for October 2012:

Alfond Babies Make TV Debut

Husson and Thomas Celebrate SALT

Promising Practices Forum

The Finance Authority of Maine (FAME) will hold its annual meeting and awards event, Showcase Maine, on Tuesday, November 13, 2012, beginning at 4:30 p.m. at Portland’s Holiday Inn By The Bay.

Showcase Maine is a celebration of the many successful businesses and higher education initiatives happening within Maine. 

The evening will feature a reception, including a showcase of exhibits by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Robert C. Pozen. 

Pozen is a senior lecturer at Harvard Business School and a senior fellow at the Brookings Institution.  He previously served as chair of MFS Investment; vice chair of Fidelity Investments; and president of Fidelity Management and Research Company.  Pozen will offer post-election reflections on the U.S. economy, including the likelihood of Congress avoiding the impending “fiscal cliff.”

“We look forward to celebrating the successes of the past year with our partners in Maine’s business and higher education communities,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “We are proud to showcase Maine businesses and educational organizations, and it is a privilege for us to honor some of Maine’s innovative leaders.”

This year’s award recipients include: 

• Anania & Associates Investment Company, LLC of Portland (Business at Work for Maine Award):  Anania & Associates Investment Company is a private investment fund that invests in small, well-managed companies in the manufacturing, service and distribution sectors.  Over the years it has successfully utilized the FAME-administered Maine Seed Capital Tax Credit Program to increase out-of-state investment in Maine.  Some businesses in Anania & Associates’ portfolio have used other FAME programs to expand into new product lines.
• Junior Achievement of Maine (Education at Work for Maine Award):  JA is a non-profit organization dedicated to educating Maine students in grades K-12 about entrepreneurship, work readiness, and financial literacy through experiential, hands-on programs.  In the 2011-12 academic year, JA delivered programs to 535 Maine classes and 9,915 students in 112 Maine schools.
• Camden National Bank (Financial Institution of the Year Award):  Camden National Bank frequently partners with FAME to provide financing to Maine businesses.  It also 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. 
• Machias Savings Bank (Financial Institution of the Year Award):  Machias Savings Bank actively partners with FAME to provide financing to local businesses, including lobstermen and the fishing industry.  In 2011, Machias Savings employees donated many hours of volunteer labor by participating in many worthy causes, from coaching youth sports to serving on non-profit boards.  During the same period, the bank contributed monetarily to various organizations, as well.  
• Hon. David Richardson of Carmel (Dirigo Legislative Champion Award):  Richardson, a state representative from Carmel, was co-chair of the 125 Maine Legislature’s Joint Standing Committee on Education and Cultural Affairs.  He is a strong supporter of FAME’s mission, especially with respect to providing higher education opportunities for all Maine students.

The public is welcome to attend in this celebration.  Anyone interested in attending the event can register online at www.famemaine.com

Items of Interest for September, 2012:

FAME's Cohort Default Rate

College Access Sub-Grant Recipients

Legislative Update

The Board of Directors of the Finance Authority of Maine (FAME) recently toured several Androscoggin County businesses prior to its monthly meeting, which was held at Bates College.  The Board also met with the Androscoggin County Chamber of Commerce, area legislators, and community leaders to learn about regional economic and higher education needs.

The FAME Board and staff visited a variety of businesses during their September 19-20 visit to Androscoggin County, including:  Tex Tech Industries, Inc. in North Monmouth; Ricker Hill Orchards in Turner; and the Bates Mill complex; Quoddy, Inc.; and WahlcoMetroflex, Inc., all in Lewiston. 

The Board also held its monthly meeting at Lewiston’s Bates College, where it enjoyed presentations by Bates College President A. Clayton Spencer and Mr. Hussein Ahmed, a representative of the Somali community. 

Area legislators State Sen. Margaret Craven and State Rep. Peggy Rotundo joined FAME for part of the day, as well.
 
FAME Board Chair Susan Snowden stated:  “It was a real privilege to visit with a variety of business and community leaders in Androscoggin County.  We are excited about the level of energy that exists there, and we are pleased that FAME has been able to assist in the region’s growth.  We look forward to a strong, continued partnership.”

At the monthly meeting, members voted to approve loan insurance for a Bangor Savings Bank loan to Biddeford Internet Corp. (GWI), as well as a direct loan to Ocean Renewable Power Company (ORPC), headquartered in Portland.  Members also adopted a new rule as a result of a recent legislative amendment to the Maine New Markets Tax Credit Program.

ORPC is a Maine-based developer of hydrokinetic power systems that harness the power of oceans and rivers to create clean and renewable energy.  It recently launched the first commercial tidal energy turbine generator unit in North America, in Lubec.  FAME approved a $750,000 Economic Recovery Loan for working capital as part of a larger financing package including monies from state and federal sources.  The direct loan will help the company to create and retain an estimated twenty-seven jobs in Maine.

Chris Sauer, a co-founder and president/chief executive officer of ORPC, stated:  “FAME’s assistance at this critical and exciting stage of our company’s growth is deeply appreciated and helpful.  We applaud the FAME board’s vision and support as Maine moves boldly forward with its first, commercial ocean energy project.  Good-paying jobs in Downeast Maine will result.”

The Finance Authority of Maine (FAME) recently notified twenty-two Maine schools and non-profit education organizations that they have been chosen to receive sub-grants totaling $889,277 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 Ashland District High School, which will provide individualized Free Application for Federal Student Aid (FAFSA) completion assistance; PSAT, ASVAB, Accuplacer, and SAT test-taking for all seniors; job shadowing; and follow-up programming to ensure that graduates have enrolled and are attending post-secondary institutions.  Another grant recipient is Waldo County Technical Center, which will offer weekly financial literacy lessons and workshop series through their current academic readiness program; “FAFSA feasts” to provide group support and knowledgeable guidance with financial aid completion; and a summer send-off session to provide support for seniors and their families.  Wiscasset Adult and Community Education, another sub-grantee, will provide students with a Personal Higher Ed Navigator to assist with transcripts, prior learning assessment, career decision making, applications, FAFSA, admissions, orientation, peer networking, and ongoing support.

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 2013.  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 2012-2013 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. 

The Finance Authority of Maine (FAME) continues to post impressive Cohort Default Rates for Maine student loan borrowers.  According to data released September 17, 2012 by the U.S. Department of Education, FAME’s federal Fiscal Year 2010 official Cohort Default Rate was 4.9%, the lowest rate for the agency since 2005.  It also is the agency’s third-lowest rate since 1993.  By comparison, FAME’s Fiscal Year 2009 Cohort Default Rate was 6.1% of borrowers and in FY 2008 was 5.9%.  Last year’s national average for guaranty agencies was 7.0%  

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.  National rates will be released by the U.S. Department of Education on September 24, 2012. 

 “FAME’s ability to maintain a low default rate benefits borrowers, schools and lenders,” stated FAME Board Chair Susan Snowden.  “FAME’s remarkable default rate is the result of expanded college access, financial education and debt management services that support financial aid offices and educate borrowers.” 

“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.  Each year the agency recognizes April as Financial Literacy Month by offering a variety of financial education and financial-aid related workshops to students across the state.  FAME annually co-sponsors “Fostering Financial Literacy in Maine Schools,” a financial literacy summit for Maine teachers, administrators, counselors and others.  FAME also recently launched SALT, a first-of-its-kind collaboration with American Student Assistance that delivers financial education and debt management services free-of-charge to Maine students and alumni.

The Finance Authority of Maine (FAME) has partnered with American Student Assistance (ASA) to revolutionize how Maine college-goers finance and repay their higher education costs.  Through the innovative educational membership program SALTSM, functionally powered by ASA and administered in Maine by FAME, Maine college students and alumni will receive financial literacy and proactive education debt management services free-of-charge. 

SALT is the industry-leading financial empowerment program created by ASA to improve the financial capabilities of college students and alumni, as well as to assist student loan borrowers once they enter repayment.  In addition to one-on-one counseling and guidance, students and alumni will have access to online tools as part of ASA’s membership program, including:  a highly interactive, experience-based financial education curriculum; a personalized dashboard by which students may track their loans; interactive calculators; access to job and scholarship searches; and other benefits and rewards to help reduce the cost of attending college.

FAME will launch a pilot version of the program this fall when students return to class.  The pilot program will include up to nine participating Maine colleges and universities and will be funded by the Maine College Access Challenge Grant.  Students should contact their college directly for more information about SALT.

As a public purpose, nonprofit organization, ASA is committed to offering SALT services free of charge to student and alumni members by sharing the costs of service delivery with like-minded stakeholders who want to develop student financial capabilities. Since SALT’s launch earlier this year, more than eighty colleges and universities from across the country have signed up to give their students and alumni access to the program.  FAME is the first non-college entity to partner with SALT.

“This is a first-of-its-kind collaboration between two student loan service providers to address the problems of college affordability and student debt,” stated ASA President Paul Combe.   “This kind of creative solution is critical, especially because our nation’s higher education system traditionally does not include these types of proactive activities that teach students the best way to pay for college and manage the resulting debt.  We believe the Maine initiative can serve as a replicable model for other states wrangling with these issues,” he added.

According to the Project on Student Debt and the Class of 2010, Maine ranks second in the nation for the highest debt level among four-year college graduates, with an average of $29,983 per student.  At an interest rate of 6.8 percent, such debt translates into average monthly payments of $345 for more than 10 years, with total interest expected to be repaid totaling $11,422. 

“Maine students often try to navigate the college financing and loan repayment waters with inadequate knowledge of the process and without thinking through the consequences of their indebtedness,” said FAME Chief Executive Officer Beth Bordowitz.  “FAME has many initiatives in place to provide that knowledge.  With the launch of SALT, FAME is providing another opportunity for Maine students to be better prepared to plan their futures.” 

Previous ASA programs have demonstrated that students provided with proactive, customized and targeted communication, such as those provided via SALT, are 50 percent less likely to fail in loan repayment. 

About ASA

American Student Assistance is a private nonprofit whose public purpose mission is to empower students and alumni to successfully manage and repay their college loan debt.  The company was established in 1956 as the nation’s first student loan guarantor and is based in Boston, Massachusetts.  For more information, please visit www.asa.org.

Items of Interest for August 2012:

New Director of Business Development and Customer Relations

New Initiatives and Publications

EPIC Processing Notification

The Board of Directors of the Finance Authority of Maine (FAME) has approved financing for Portland-based Apothecary by Design, LLC, which will help the company to create and retain thirty-eight Maine jobs.  FAME’s action will help the company to fund lease-hold improvements at an additional facility and to make upgrades at its existing headquarters. 

FAME has supported the company by providing loan insurance on loans made by Bangor Saving Bank since the company started in 2008.

“FAME is pleased to have helped Apothecary by Design get started and with its new plans to grow,” stated FAME Chief Executive Officer Beth Bordowitz. 

Apothecary by Design, LLC is a locally owned, independent pharmacy offering a range of integrated pharmacy services that include retail prescription services, specialty pharmacy services focusing on disease management, pharmaceutical compounding, and nutritional health and well being.

At its August 16 board meeting, FAME approved 90 percent loan insurance on a $150,000 loan by Bangor Savings Bank.  It also approved the re-advancement of funds on an existing loan and the renewal of an existing line of credit.

The approved financing will help the company’s specialty department relocate to Portland’s Preble Street in order to gain efficiencies and additional work space due to the company’s rapid growth.  FAME’s action also will permit various upgrades at the company’s existing Marginal Way headquarters, including the enlargement of its compounding lab, allowing it to double its capacity and improve the workflow of both its retail and compounding pharmacy services.  The reconfiguration also will allow the company to expand its nutraceutical and supplement offerings. 

The company’s managing partner, Mark McAuliffe, stated:  “We are grateful to Bangor Savings Bank and FAME for helping Apothecary by Design to increase production, maintain and create good-paying jobs in the state, and continue our growth and expansion.” 

The Finance Authority of Maine (FAME) is currently displaying the works of Svetlana Beattie, an artist residing in Augusta who specializes in oil painting, photography and sculpture.  The display features her paintings.

FAME Chief Executive Officer Beth Bordowitz stated:  “FAME is pleased to have Svetlana’s work adding color and vibrancy to our office, while helping to bring public attention to Maine artists who enrich our communities.” 

Born in Russia, Beattie moved to the United States in 1999.  She earned a bachelor of science in music education and a master's degree in child education and psychology.  She has continued her education at the University of Maine in Augusta, focusing on art.

One of Beattie’s passions is creating photographic character books, or personal photo albums “of the heart.”  She now has three such books in print, as well as two other books featuring her paintings.  Through her oil paintings, Beattie explores luminosity and color in nature with a sincere expression of joy and happiness.  Her brushwork is expressively loose and aids the impression of the moment.  The interplay of opposites creates a dynamic energy and emotional unity in her works.

        
Her fellow artist, Stephen Plumer, stated:  “I see Svetlana as an extremely dynamic, versatile artist not locked into a repeat style, but exploring new visual ideas continually.  Her use of color humbles me, and her design sense seems intuitively explainable.”
            
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 October 31 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.  Public receptions with Beattie and friends will be held on August 23 and September 27 from 5:00 p.m. 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 July 2012:

EPIC Database

FAME 5 on the 5th

FAME's 2012 Showcase Maine

Items of Interest for June 2012:

Departure of Martha Johnston

EPIC

Dental Education Loan Program

The Finance Authority of Maine (FAME) announced today that various fees within the NextGen College Investing Plan® (NextGen) will be reduced.

Effective June 29, 2012, total annual asset-based fees will be reduced in most portfolios in the Client Direct (self-directed) Series.  Also, total annual asset-based fees will be reduced in all unit classes in the Client Select (advisor-sold) Series.  In addition, initial sales charges on A Unit class purchases will be reduced for certain asset classes. These and other changes can be reviewed in more detail in the Supplements dated June 29, 2012 to the Client Direct Series and Client Select Series Program Descriptions.

Most portfolio fees will be reduced between four and eleven basis points.  Fees are being reduced up to eleven basis points in the actively available A and C Unit Classes in the Client Select Series.  The Account Maintenance Fee within the Client Direct Series has been eliminated.  

For a complete list of changes to the various portfolios, please visit FAME’s Website at: 
http://www.famemaine.com/NextGenLanding.aspx

“We are pleased to be reducing fees within NextGen,” stated FAME Chief Executive Officer Beth Bordowitz.  “We are able to offer these enhancements due to the program’s success, and we’re grateful to Merrill Lynch, the Program Manager, for their cooperation in reducing their fees.  It is important for the program to remain competitive with other Section 529 plans around the nation while offering a variety of choices for investors.  FAME and its Advisory Committee on College Savings, which is chaired by the State Treasurer, continually evaluate NextGen to identify opportunities to enhance and improve the plan.”

NextGen is one of the largest Section 529 college savings programs in the country, with almost $6 billion in assets as of May 31, 2012.  It was created by the Maine Legislature in 1999 as a qualified tuition program under Section 529 of the Internal Revenue Code.  NextGen is a tax-advantaged investing program of the Finance Authority of Maine designed to help families prepare for qualified higher education expenses.  Merrill Lynch is the program manager and underwriter of the plan.  Anyone at least age 18 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 accounts.

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

NextGen is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in NextGen, request a NextGen 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 NextGen, 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 May 2012:

Educators fo Maine Program

State of Maine Grant Program

FAME Showcase Maine and Annual Meeting 2012