FAME to assist with Saddleback expansion

The Board of Directors of the Finance Authority of Maine (FAME) recently approved commercial loan insurance on a Skowhegan Savings Bank loan to Saddleback, Inc. and Saddleback Land and Timber Corporation (Saddleback) for the operating needs and expansion of the Western Maine ski resort facility.  FAME also has adopted a new refinancing program for FAME-approved lenders that is designed to help lenders and borrowers succeed in current economic conditions.

FAME has agreed to provide 90% insurance on a $3 million loan by Skowhegan Savings Bank to Saddleback, which plans to expand its current operations and create a four-season destination facility in the Rangeley lakes area.

“We are pleased to assist Saddleback as it continues to improve operations at this renowned Maine mountain,” stated FAME Board Vice Chair Glenn Lamarr.  “FAME is very supportive of increased economic development in the Rangeley area and the retention and creation of an estimated 200 full and part-time jobs at the resort.”

“We are grateful for FAME’s assistance and excited about Saddleback’s plans for the future,” stated Warren Cook, CEO and General Manager of Saddleback.  “FAME’s actions will help us maintain and create good Maine jobs while expanding operations.  Saddleback has a storied Maine history and now, thanks in part to FAME, a bright future, as well.”  

Saddleback Mountain offers a 2,000-foot vertical drop and is one of seven New England mountains with a top-lift elevation of over 4,000 feet.  Saddleback has made a number of improvements over the last several years, including construction of a new base lodge and new lifts; expanded snowmaking; a new grooming fleet; and increased four-season destination programs for weddings and functions.  To learn more about Saddleback, please visit www.saddlebackmaine.com.

The FAME Board also has approved modifications to FAME’s current loan insurance policy that will allow FAME-approved lenders to obtain limited insurance coverage on previously uninsured exposures through a modification or refinance.  Under the new program, up to a maximum of 40% of FAME loan insurance may be provided.  Potential borrowers will need to demonstrate that some form of public benefit will result from this participation, such as the retention or creation of jobs and the impact the industry has on jobs and other businesses in the region.  This program is similar to one previously offered by FAME to assist Maine lobstermen overcome challenging economic and federal regulatory conditions.   

“By adjusting our loan insurance policy to allow the refinancing of certain existing debt, FAME is demonstrating its support for Maine’s economy and the important relationships local businesses maintain with their local lenders,” stated Beth Bordowitz, FAME’s Chief Executive Officer.  “We also hope that this program will assist traditional Maine industries, such as logging, during an especially stubborn recession.”

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