FAME Offers Improved Loan Program
Tuesday, September 15, 2009
11:31 AM
The Finance Authority of Maine (FAME) announced that recent improvements to its Regional Economic Development Revolving Loan Program (REDLP) will take effect September 14, 2009. The modifications result from enactment last spring by the Legislature and Governor John E. Baldacci of Public Law 2009, Chapter 131, An Act to Modify the Regional Economic Development Revolving Loan Program.
REDLP, created by the Legislature in 1993, is designed to make loans through Maine’s regional economic development agencies for the purpose of creating or retaining jobs. FAME makes disbursements to regional economic development agencies and the agencies, in turn, make loans to eligible borrowers.
“FAME is pleased to offer an enhanced REDLP to better meet the needs of Maine’s regional economic development agencies and the businesses they serve,” stated FAME Chief Executive Officer Beth Bordowitz. “FAME is committed to partnering with these local agencies and supporting Maine’s small businesses in this challenging economy.”
The new law has two components. The first is geared toward meeting the credit needs of businesses in this challenging economy. Through June 30, 2010, participating regional agencies will be able to make loans to almost any eligible Maine business, regardless of size or sector, with certain limited exceptions. Commencing July 1, 2010, the program will revert back to its original purposes, with modifications to update the program.
The changes include: increased maximum fund disbursements to regional economic development agencies; amended financing terms and conditions; expanded eligibility for projects, especially Maine’s targeted cluster industries such as composites, energy, and marine and biotechnology; and expanded business eligibility for program funds.
The program enhancements, which won broad support in the Legislature, result from the combined input of various Maine regional economic development agencies.
“These sensible, no-cost changes to REDLP are ways by which FAME, in partnership with regional economic development agencies, is addressing the capital needs of Maine’s small businesses during these challenging economic times,” stated Will Armitage, Executive Director of Biddeford-Saco Area Economic Development Corporation, which participates in the program.
From 1996 through 2007, REDLP provided 535 loans totaling $27 million. These loans in turn leveraged an additional $218.1 million in investments and created and retained a total of 9,104 Maine jobs. Interested parties should contact their regional agency for information and applications regarding REDLP.