FAME Approves Low-Interest Financing and Authorizes Rulemaking for New Programs

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

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

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

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

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

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

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

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

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

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