Fueling Maine’s Economic Growth by Supporting 10,000 Businesses that Created and Retained 200,000 Jobs

Augusta, Maine – November 28, 2023 – The Finance Authority of Maine (FAME) marks a significant milestone this year as the agency celebrates 40 years of unwavering commitment to supporting Maine’s business community and helping Mainers meet the costs associated with higher education. 

Since its establishment in 1983, FAME has been at the forefront of fostering economic growth, job creation, and education opportunities in the state. In its first four decades, FAME has helped nearly 10,000 Maine companies with approximately $2.5 billion in financing, resulting in the creation and preservation of over 200,000 Maine jobs throughout the state. FAME has been instrumental in helping Maine students and families meet the costs associated with higher education, as well, awarding over $470 million in grants to over 285,000 Maine students. 

“Over four decades, FAME has strengthened Maine’s economy by empowering thousands of Maine people to go to college or to start or expand a business,” said Governor Janet Mills. “FAME has been a critical partner in my Administration’s work to build an economy poised for future prosperity—efforts that have helped to fuel more economic growth over the last four years than during the preceding fifteen. I congratulate FAME on their milestone, and I look forward to our continued work to strengthen economic opportunities for all who call Maine home.”

FAME began its journey in 1983 by working closely with Maine’s lending community to enhance access to funding and bridge gaps in the state’s commercial finance system. Over the years, FAME’s mission has evolved, expanding its scope to meet the diverse financial needs of Maine’s businesses and residents seeking access to affordable higher education. 

Here are some key highlights from FAME’s journey:

Diverse Business Assistance Programs

FAME has offered a wide array of business assistance programs, from traditional loan insurance programs for small and larger businesses to investment tax credits for business investors. The quasi-independent agency also offers taxable and tax-exempt bond financing programs, allowing creditworthy firms in Maine to access capital at favorable rates and terms. 

Creating Brighter Futures for Maine Students

In 1990, the Maine Legislature significantly expanded FAME’s mission by tasking it with responsibility for administering the state’s higher education finance programs. Through various grant, loan, loan repayment, and scholarship programs, FAME helps Maine residents pursue higher education. Some highlights:

• Since 1992, FAME has awarded more than $420 million in need-based grants through the Maine State Grant Program. Over 350,000 grants were awarded during this period.
• FAME’s outreach and counseling programs have encouraged numerous young people to aspire to, plan for, and pursue higher education. This work includes financial aid nights, webinars, FAFSA completion assistance, and financial education tools. 
• FAME proudly administers Maine’s Section 529 education savings program, NextGen 529®. It is a top ten savings plan in the nation, with approximately $13 billion in assets under management. The program provides a $100 initial matching grant to eligible accounts; a $100 grant to eligible beneficiaries with qualifying automatic contributions made directly from a bank account or via payroll deduction; and up to a $300 match per year for those making contributions to their account.
• Since NextGen’s inception, FAME has awarded over $50 million in grants to encourage Maine families to save.
• The Harold Alfond College Challenge (also known as the Alfond Grant) provides a $500 grant to eligible Maine resident babies to be used for future higher education expenses. Over 150,000 Alfond Grants have been awarded to Maine children over the years. This $75 million investment has been leveraged by family NextGen contributions, investment earnings, and FAME matching grants to represent $400 million in education savings for a brighter future for Maine’s children.

Innovation and Flexibility

FAME’s strength lies in innovative, adaptable solutions, making them the preferred resource for businesses and individuals pursuing success in Maine’s evolving economic landscape. 

• FAME’s loan insurance helps to cover a commercial lender’s credit risk. For a business, it may mean the difference between obtaining a loan, going out of business, or never getting the opportunity to start a business. Loan insurance is available for almost any prudent business activity and insures up to 90 percent (100 percent for veterans) of a loan to a maximum FAME insurance exposure for any one relationship of $7.5 million. Since inception, the state has invested approximately $40 million in funding for this program, which in turn has resulted in over $750 million in loan insurance offered by FAME over the years. This insurance has supported approximately $1.5 billion in commercial loans to Maine businesses in partnership with local Maine lenders and has helped to create and retain over 100,000 Maine jobs.

“Maine’s Legislature created FAME in 1983 with a primary purpose to improve economic opportunities for current and future Mainers,” said Dick Trafton, chair of the FAME board of directors. “As sponsor of that law, I am excited and rewarded by FAME’s loans to businesses, grants to students, and partnering with others in Maine’s public sector. As current chairman of FAME’s Board, I believe FAME improves life for most Mainers and will continue to grow its impact.”

FAME’s Impact on Maine’s Business Landscape: Supporting Innovative Companies

MedRhythms: Cutting-edge technology improving Mainers’ health

In recent years, FAME has provided financing for some cutting-edge technology businesses, including MedRhythms, Inc., a digital therapeutics company located in Portland. MedRhythms uses sensors, music, and software to build evidence-based, neurologic interventions to measure and improve walking. FAME has worked with the company to provide various types of financing, including investments made through the Maine Seed Capital Tax Credit Program and the Maine New Markets Capital Investment Tax Credit Program, which helped to finance the costs of developing and executing a commercialization strategy for a stroke rehabilitation digital therapeutic device, as well as additional R & D expenses. The company was awarded funding through the Grow Maine program, as well. MedRhythms was honored by FAME in 2022 with its Business At Work for Maine award.

Standard Biocarbon: Biochar production, a new High-Growth, Clean, Sustainable Industry

FAME partners well with other economic development finance entities at the state and local level. One example is the partnership between FAME, Coastal Enterprises, Inc., and the Maine Technology Institute to provide $2.5 million for Standard Biocarbon, Inc.’s first Maine manufacturing facility. Standard Biocarbon is a Maine-based, clean-tech startup producing biochar at industrial scale to supply demand in agriculture, remediation, and materials and to generate carbon removal credits. The financing helped to allow the company to purchase equipment for producing high-quality biochar at its facility in Enfield.

“The support from FAME and other finance agencies, together with investment and encouragement from the broader Maine community, officials, and local forest products industry, has been instrumental in bringing this industry to Maine,” said Fred Horton, co-founder, president, and chief executive officer.

Standard Biocarbon supplies biochar for use in agriculture, environmental remediation, and emerging applications in composite building materials and pavement. Studies have shown biochar to be effective for remediation of PFAS “forever chemicals” and heavy metals. Biochar does not degrade in nature, so carbon content is captured for thousands of years where biomass, whether burned or left to rot, soon releases all of the carbon back to the atmosphere. Biochar has emerged as a highly efficient, durable, economical, and scalable carbon dioxide removal technology.  

Empowering Entrepreneurship and Thriving Business Growth: Quoddy’s Success Fueled by FAME Support

Quoddy, a Maine-based footwear company, came under the ownership of Kristen and Kevin Shorey in 1997. Their entry into the industry stemmed from their background as retailers on a mission – they could not locate Maine-made shoes within the state, so they took the step of crafting their own. As their vision rapidly outgrew their original space in Washington County, they set their sights on joining the ranks of fellow shoemakers in Lewiston, a long-time hub for this traditional Maine industry. 

“FAME has been an invaluable partner in our journey to revive and expand Quoddy,” said Kevin Shorey, President of Quoddy Inc. “Their financial assistance, especially during our move to Lewiston, has been a game-changer for our business. Without FAME’s support, we wouldn’t be where we are today. They’re not just a lender; they’re a true partner who understands our business and helps us thrive. Their commitment to Maine’s small businesses, like ours, is vital for our state’s economy.”

Quoddy worked with FAME several times, the first in 1997 so they could move their business from Washington County to Lewiston, again in 2004, 2010, and 2018. From purchasing additional machinery to hiring more people, Shorey said they would not have been able to grow into the multi-million-dollar company that they are now, hiring dozens of people over the years. 

“There’s no reason not to partner with FAME,” Shorey added. “They understand your business, they’re on your side, and they’re in it for your success. Without FAME, the state of Maine would look dramatically different. Small businesses like ours are what make up the state of Maine and contribute significantly to Maine’s economy, touching the lives of countless people in our state.”

The Journey of Pleasant River Lumber with FAME’s Vital Support

Pleasant River Lumber underwent a significant transformation in 2004 when brothers Chris and Jason Brochu, alongside their family members, acquired the business. Since then, their visionary leadership has elevated the company to become one of Maine’s largest logging enterprises. The company now owns and operates two lumber mills, plus a logging and trucking company, as well as Ware-Butler Building supply, which has fifteen locations across the state. In their pursuit of growth, the Brochu brothers partnered with FAME in 2004, a pivotal moment that marked the beginning of their journey. Today, they proudly own and operate five mills across the state, and their workforce has grown from 75 employees in 2004 to 600, all based right here in Maine. 

“FAME has been an unwavering partner in our journey to success. Their initial support, guaranteeing a portion of our loan, was instrumental in our acquisition of the business back in 2004,” said Chris Brochu, Co-President of Pleasant River Lumber. “With their assistance, we’ve not only sustained the business but thrived. Today, we proudly employ over 600 people, all within the state of Maine. Without FAME’s vital support, our growth and impact on the state’s business landscape would be vastly different. They’ve been a cornerstone in shaping the business climate in Maine, and we are deeply grateful for their partnership.”

Throughout its remarkable 40-year journey, the Finance Authority of Maine (FAME) has been instrumental in shaping the economic, educational, and workforce landscape of Maine. 

“FAME has been a catalyst for economic growth, business expansion, and educational empowerment in the state of Maine,” said FAME CEO Carlos Mello. “We are proud to have played such a crucial role in the success of countless businesses and the pursuit of higher education for so many Maine students. FAME’s legacy is one of support for the people of Maine, and we remain committed to innovating and fostering a prosperous future as we move forward.”

FAME launches resources to help Maine borrowers get ready for repayment restart

Augusta – According to a recent survey conducted by U.S. News & World Report, only 30% of student loan borrowers know when their payments are set to resume, while almost half said they aren’t financially prepared to begin repaying their debt. In Maine, there are 187,100 student loan borrowers with $6.2 billion in student loan debt belonging to state residents. After a three-year pause of payments by the federal government, FAME has launched a Student Loan Repayment Restart online resource to help Mainers prepare for and navigate the repayment process, which starts in October. Federal student loan interest begins accruing September 1, 2023.

“It has been over three years and nine extensions since most borrowers were required to make a payment on their federal student loans,” said Martha Johnston, FAME Director of Education. “In addition, students who graduated during the pandemic have never had to establish the habit of repaying their loans. We hope that these new resources will provide meaningful support to help borrowers prepare and navigate repayment.”           

The new online resource provides information to help borrowers plan for repayment, including key steps that borrowers can take to prepare. For example, borrowers should visit StudentAid.gov to verify their federal student loan servicer, as it may have changed. Once they have confirmed their servicer, they should update their online account and provide current contact information. It is also critical that borrowers pay attention to and respond to any emails or letters from their loan servicer. Most importantly, borrowers who can’t afford their student loan payment or can’t make their payment on time should contact their loan servicer to explore alternative repayment options and loan forgiveness programs, such as Income Driven Repayment and Public Service Loan Forgiveness.

About FAME:

The Finance Authority of Maine (FAME) is a quasi-independent state agency celebrating its 40^th anniversary. FAME provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit www.famemaine.com.

Up to 80 jobs may be created at former mill site

AUGUSTA — At its monthly meeting held on May 18, 2023, the Finance Authority of Maine (FAME) approved financing for Katahdin Salmon, Inc., an inland aquaculture business to be located in Millinocket. FAME’s actions are expected to help to create approximately eighty jobs in Millinocket.

FAME unanimously voted to approve Katahdin Salmon, Inc.’s application for a FAME Direct loan up to $110,000 to contribute to the financing of pre-construction planning and first management hires for what will become Maine’s first inland land-based salmon farm. The site, formerly the Millinocket paper mill, will feature a recirculating aquaculture system (RAS) to deliver 5,000 metric tons of salmon in two stages. In this financing FAME is partnering with Maine Technology Institute, Maine Venture Fund, One North, and other select investors.

FAME found extraordinary public benefit potential from this proposed project, as well as equity investments that have been made into Katahdin Salmon, Inc. Maine’s ten-year economic development plan prioritizes aquaculture and marine sciences, which have long been part of the state’s targeted technology sectors.

Xcelerate Aqua LLC, a Maine-based entity, is the founder of Katahdin Salmon, Inc. The aquaculture development company is owned by Erik Heim and Marianne Naess, both experienced executives from the aquaculture sector. The salmon will be hatched, raised, and processed on site and sold to regional Northeast markets.

“We and involved investors are very appreciative of FAME’s support as we progress with planning for this unique developments that will promote carbon mitigation and regenerative food systems,” stated Erik Heim, co-founder of the company. “We have spent considerable effort in establishing dialogue and a good foundation with local communities, environmental organizations, and others in the past months,” said Marianne Naess, CEO and co-founder.

“FAME is thrilled to support Katahdin Salmon, Inc. with its plans for the RAS facility and particularly its proposed investment plans in the Millinocket region,” stated Richard Trafton, FAME Board chair. “This highly innovative and environmentally sound reuse of the Millinocket paper mill site shows the exciting trend of Maine economic development.”

FAME’s Direct Loan provides access to operating capital for startups and existing businesses for most business purposes. Loans up to $1 million may be available if substantial public benefit is demonstrated and sufficient funds are available.

AUGUSTA – Harrington Elementary School recently was awarded the FAME Invest in ME Reads Giveaway, which includes the complete Invest in ME Reads book collection, a variety of family resources, and a special virtual visit from Maribeth Boelts, author of Those Shoes. 

Created by the Finance Authority of Maine (FAME) in partnership with the Consumer Financial Protection Bureau (CFPB), Invest in ME Reads is a statewide program designed to support family financial education by empowering families to engage in conversations about future goals, saving money, and the value of choice. 

Unlike many financial education programs that focus on high school students, Invest in ME Reads engages children early in elementary school to help them begin to learn about money and financial decision making. FAME launched the program in 2020 to serve all Maine second graders and in the fall the program will be expanded to provide free resources to all public second through fifth grade students.   

Through FAME’s Invest in ME program, students receive a collection of educational resources, including free books, that encourage students to learn about topics such as saving, giving, and delayed gratification. Families also receive materials to use at home, including a parent guide, information to support college savings, and special content to encourage them to visit InvestinMeReads.com, an interactive web page with fun activities and resources for students and their families.

“Our students enjoyed having a virtual visit and book reading with the author, Maribeth Boelts”, said Harrington Elementary second grade teacher Natalie Beal. “We had great conversations about friendship, helping others, the importance of saving, and needs versus wants. Invest in ME Reads is a wonderful program, and we are thrilled to be recipients of the school giveaway.”

The program helps to support Maine’s statewide goal to produce an educated and skilled workforce. For many Mainers, a lack of financial capability can be a significant barrier to pursuing education and training after high school, which in turn can have an impact on an individual’s ability to seek employment and, ultimately, the strength of Maine’s economy.

“At FAME, we recognize that financial capability is a key ingredient for lifelong success, and we want to do our part by providing resources that will support financial education – even as early as elementary school,” said FAME Director of Education Martha Johnston. “Schools across Maine have embraced the program and we look forward to expanding the program.” 

To celebrate the end of the school year, second graders at Harrington Elementary participated on June 14 in the virtual book reading, which featured Those Shoes, read by the author Maribeth Boelts. “I am so honored that my book is a part of the Invest in ME Reads Program and is included among the many helpful and rich resources provided by FAME,” said Boelts.

For more information about how FAME can support your family’s financial goals, please visit the Invest in ME Reads website.

The Finance Authority of Maine (FAME) is a quasi-independent state agency celebrating its fortieth anniversary in 2023 that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development.

AUGUSTA — At its monthly meeting held on May 18, 2023, the board of directors of the Finance Authority of Maine (FAME) approved financing for Beansprouts Learning Center, which will enable the company to acquire and operate six childcare centers in central and southern Maine. The borrower, who currently owns and operates two childcare centers, will be able to increase her company’s capacity by 524 childcare spots to a total of 636 licensed spots for eight total centers. The company will now operate under the name Roselyn North Academy. The board’s action will help to retain seventy-seven jobs and create fifty-one jobs by the end of 2024.

FAME approved two FAME Direct loans totaling $2,370,200, as well as 90% pro rata loan insurance on a $795,000 loan by Bath Savings Institution to acquire the six additional childcare centers. Further, FAME and Coastal Enterprises, Inc. (CEI) are participating through the Grow Maine Program in a $1,575,000 loan. Each party will provide $787,500 in funding. CEI also is participating in one of the FAME Direct Loans, one totaling $795,000. CEI will provide $397,500 of that loan and FAME will do the same.

“We are very appreciative of FAME’s support as we increase our childcare services in other parts of the state,” stated Angela Garrison, owner of the former Beansprouts Early Learning Childcare. “We look forward to offering quality childcare for parents and quality compensation and benefits for our employees in order to provide the best atmosphere of care and work.”

“FAME is pleased to partner with Bath Savings Institution and CEI to support Beansprouts Learning Center with its plans to operate additional childcare centers in central and southern Maine,” stated Richard Trafton, FAME Board chair. “There is strong public benefit in this approval as there is high demand for childcare services in the state. Our actions should help to address this need and allow more adults to participate in Maine’s workforce.”

“Access to quality childcare is a key factor in parents’ ability to engage in the workforce and maintain economic stability, which is why we have supported the sector through advising and financing for over forty years,” said Daniel Wallace, Chief Investment Officer at CEI. “We first worked with Angela and Beansprouts as a startup in 2013, and it is exciting to be part of its continuing growth with this significant expansion that will connect more Maine families and children to quality early childhood education and care.” 

The Maine Economic Development Strategy 2020-2029 calls in Action E-1 for increased investments in Maine’s childcare system in order to prepare our children to succeed (p. 20). The report notes that one of the most frequently asked questions by individuals considering a move to Maine is “What is the childcare situation in Maine? Availability? Quality?” The high cost and lack of availability of daycare affects the ability of many parents to stay in the workforce and to attend school, as well. The report notes the reactivation of Maine’s Children’s Cabinet and its work to increase the number of quality infant and toddler care slots, invest in the childcare workforce, and improve access to a childcare subsidy program (p. 33). 

Grow Maine, administered by FAME in conjunction with various statewide lending partners like CEI, provides up to $62 million of State Small Business Credit Initiative (SSBCI) funding to eligible Maine businesses. Funding is available through FAME and its intermediary partners via loan guarantees, direct loans, and equity capital. Grow Maine is intended to provide broad access to capital to help Maine businesses grow and provide jobs for Maine people that will have long-term positive effects on Maine’s economy. Grow Maine: Small Business Loan and Capital Program – FAME Maine

FAME’s Direct Loan provides access to operating capital for startups and existing businesses for most business purposes. 

FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution or investment firm. For a business, it may mean the difference between obtaining a loan or never getting the opportunity to start a business.

The Finance Authority of Maine (FAME) is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit www.famemaine.com

$29 million in forgivable business loans ranging from $10,000 – $500,000

AUGUSTA–-The Finance Authority of Maine (FAME) is pleased to announce that the Thrive Maine program, which offers forgivable loans to eligible Maine small businesses negatively impacted by the pandemic, will launch its second application cycle on May 23. The application period will remain open until June 23, 2023. A total of $29 million will be available this cycle for loan requests ranging from $10,000 to $500,000. 

“We are looking forward to launching the second cycle of Thrive Maine to help Maine’s economy continue to move forward,” stated Carlos R. Mello, FAME CEO. “We listened to feedback from the first cycle and have accordingly modified the second cycle to address these concerns and suggestions.”

This cycle of Thrive Maine will be significantly different from the first, with new eligibility requirements, application questions, and a new award process featuring a longer application period. It will not be utilizing a first-come, first-served model. Instead, forgivable loan applications will be scored on eligibility criteria, an impact statement, and number of increased jobs.  Awards will be based on a cumulative score. Award amounts must be justified by the business’s impact statement submitted with the application. Loans may be forgiven at a rate of 25% per year over a four-year period provided certain conditions are met.

“The second cycle of Thrive Maine is designed to further strengthen the Maine economy through impactful investments for the future,” stated Heather Johnson, Commissioner of the Maine Department of Economic and Community Development and a FAME board member. “The businesses that are awarded these forgivable loans will be catalysts for development in our communities and job market, with strong and innovative business plans for future success. This second cycle will fund future plans for organizational improvement and growth, taking the next step beyond replenishing COVID-related negative economic impacts.”  

Priority will be given to businesses and projects in the construction, manufacturing, and science and technology industries, but all industries may apply. These industry sectors have been identified to be in alignment with Governor Mills’s ten-year economic strategic plan and proven to create more direct and indirect in-state jobs.

Recipients of forgivable loans from the first cycle are not eligible to apply. Business applicants will need to demonstrate a COVID-related negative economic impact on their businesses of more than $10,000. Losses for which a business previously received federal and state pandemic relief, such as Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), or Maine Small Business Grant funding, cannot be part of the loss calculation, however. 

Thrive Maine is made possible by recovery funding under the American Rescue Plan Act of 2021 (ARPA) as allocated by the Maine Jobs & Recovery Plan enacted by the 130^th Maine Legislature. In the first application cycle, which ran in October 2022, $26 million was awarded to 149 Maine businesses through forgivable loans. 

For more information about the Thrive Maine program, including eligibility details and program applications, please visit FAMEmaine.com/thrive.  Applications are anticipated to be available by noon or sooner on May 23, 2023.

FAME will be hosting an information webinar on Wednesday, May 10, at 11 a.m. This first webinar will feature general information about the program. To register, please visit: Webinar Registration – Zoom

A second webinar explaining how to apply is scheduled for May 16 at 11 a.m.

The Finance Authority of Maine (FAME) is a quasi-independent state agency celebrating its 40th Anniversary in 2023. We provide innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME helps to lead the creation of good paying jobs for Maine citizens by working at the nexus between economic and workforce development. To learn more about FAME, please visit FAMEmaine.com