FAME Announces Availability of Low Interest Financing for Economic Development
Wednesday, March 31, 2010
8:51 AM
The Finance Authority of Maine (FAME) announces the availability of low-cost economic development financing for certain eligible projects made available through the American Recovery and Reinvestment Act of 2009 (ARRA).
The Maine Legislature recently enacted and Governor Baldacci has signed into law important economic development legislation that will facilitate low-cost financing for eligible private and public projects state-wide. Public Law 2009, Chapter 517, An Act to Facilitate Recovery Zone Facility Bonds, Recovery Zone Economic Development Bonds and Qualified Energy Conservation Bonds, became effective March 17, 2010.
The legislation implements federal recovery act provisions and ensures that Maine will be able to take advantage of these one-time opportunities. The initiatives will help Maine businesses, municipalities, counties and others access tax-exempt bond financing for economic development projects.
FAME Chief Executive Officer Elizabeth Bordowitz stated: “FAME is pleased to offer lower-cost financing opportunities for eligible private projects that meet the guidelines set forth by the federal government. To be eligible to access this tax-exempt financing opportunity, projects must be ‘shovel ready’ and creditworthy, with commitments in place from underwriters, banks or others to buy the bonds once issued.”
The bill was sponsored by Senate President Libby Mitchell at the request of FAME. The Legislature’s Business, Research, and Economic Development Committee worked closely with President Mitchell and various stakeholders, including FAME, the Baldacci administration, the Maine Municipal Bond Bank, and Maine counties to reach consensus and not miss out on this crucial economic development opportunity.
The purpose of ARRA and the bonds is to provide immediate economic benefit and stimulus to the states. Most of the opportunities contained in the new law expire December 31, 2010. Along with Maine counties, FAME and the Maine Municipal Bond Bank will help facilitate these opportunities for financing economic development. FAME and the Bond Bank will use their experience and expertise in the issuance of bonds. FAME will help facilitate private economic development projects, while the Bond Bank will help with public projects.
Anyone interested in more information may contact FAME (for private projects) at (800) 228-3734 or (for public projects) the Maine Municipal Bond Bank at (800) 821-1113. Additionally, interested persons may contact their local county officials for more information. Click here for more information on this program.