Mainebiz Special Editions

V O L . X X I V N O. X V I 50 FA C T BO O K / D O I N G B U S I N E S S I N M A I N E B U S I N E S S R E S O U R C E S I n the same way the Small Business Administration off ers help for small businesses nationwide, the Finance Authority of Maine steps in to help small businesses here. FAME overview e Finance Authority of Maine, or FAME, a quasi-independent state agency, is a leading fi nancial resource that expands business and educational opportunities through its willing- ness to invest at greater risk based on public benefi t. e agency's two chief goals are: one, to continuously improve customer satisfaction by developing and deploying processes that help its employees perform to their highest potential; and two, to grow the number of Maine residents with quality in- state jobs by deploying the fi nancial resources needed to obtain relevant postsecondary education and increase economic development. FAME's vision is to help lead the creation of good paying jobs for Maine residents by working at the nexus of economic and workforce development. FAME assists with the start-up, expansion and growth of Maine businesses by working closely with Maine's lending community to improve access to capital. "We exist to take on greater risks for public bene- fi t," says FAME CEO Bruce Wagner. "Without FAME, less investment would go into Maine's economy. A lot of businesses and jobs would not exist." For the past two years, FAME has been named as one of the "Best Places to Work in Maine." e awards program was created in 2006 and is a project of the Society for Human Resource Management–Maine State Council and Best Companies Group. Partners endorsing the program include: Mainebiz, the Maine State Chamber of Commerce and Maine HR Convention. Business division and programs and services Credit enhancement, risk reduction Commercial Loan Insurance Program: Loan insurance helps cover a bank's credit risk. For a business, it may mean the diff erence between obtaining a loan, going out of busi- ness, or never getting the opportunity to start a business. Commercial loan insurance represents the majority of FAME deals. It can help tip the bal- ance in favor of a deal for fi nancial institutions as they consider applica- tions from business customers that don't have enough cash fl ow or col- lateral to represent a viable risk on their own. Loan insurance is avail- able for almost any prudent business activity, and insures up to 90% (100% for veterans) of a loan to a maximum FAME insurance exposure of $5 mil- lion. is maximum insurance amount is set at least annually in accordance with FAME's Direct Loan and Loan Insurance Credit Policy. In FY 2016, FAME provided approximately $36 million in loan insurance to banks for loans to 237 Maine businesses, leveraging approximately $67 million in fi nancing. This helped to create and retain 2,963 Maine jobs. Major Business Expansion Program: Long-term, credit-enhanced (through loan insurance) fi nancing of up to $25 million per project at taxable bond rates for businesses creating or retain- ing a minimum of 50 jobs. Direct loans The FAME Direct Loan (formerly known as the Economic Recovery Loan Program): Provides subordinate or gap fi nancing to businesses aff ected by their current economic situation. In FY 2016, FAME provided loans to 30 Maine businesses totaling approximately $5.1 million. This helped to create and retain 403 Maine jobs. State Small Business Credit Initiatives (SSBCI): Funded by the federal government through the Small Business Jobs Act of 2010, this program provides fi nancing through the FAME Direct Loan program, the Maine Venture Fund and the Regional Economic Development Revolving Loan Program. Businesses applying for SSBCI funding through one of the above programs must meet the standard eligibility requirements of the respective program. Since June 30, 2015, FAME has received $8,691,110 out of a possible program total of $13,168,350 from the U.S. Department of Treasury. In FY 2016, the following loans and investments occurred through the program: $700,521 for the FAME Direct Loan Program; $406,500 for the Regional Economic Development Revolving Loan Program (REDRLP), which is administered in conjunction with participating regional eco- nomic development agencies; and $631,700 for the Maine Venture Fund. Partner-focused purpose FAME provides services to other entities such as: contractor manage- ment, loan underwriting and servic- ing, fund management, as well as board administrative support: Maine Department of Agriculture, Conservation and Forestry — Agricultural Marketing Loan Fund (AMLF): Provides 5% fi xed-rate loans to natural resource-based businesses that employ new and innovative technologies and processes in order to improve, expand and enhance the manufacturing, marketability and pro- duction of Maine-made agricultural products. Funds may be used for the design, construction or improvement of facilities such as commodity stor- age buildings and packing and mar- keting facilities. Funds may also be used to purchase or retrofi t machinery and equipment. In FY 2016, AMLF provided loans to three projects totaling $334,000. Maine Potato Board and Maine Department of Agriculture, Conservation and Forestry — Potato Marketing Improvement Fund Program: Provides 5% fi xed-rate loans to businesses for the construc- tion and/or retrofi tting of potato packing and storage facilities. Funds may be used for new construction or improvements to storage and/or centralized packing facilities, as well as for the acquisition of packing, siz- ing, washing and drying equipment. In addition, PMIF funds may be used to fund programs that improve the economic viability of the potato industry. Such improvements may include irrigation equipment and water source development projects. In FY 2016, PMIF provided one loan for $400,000 through this program. mPower — Kim Wallace Adaptive Equipment Loan Program Fund: Provides individuals and busi- nesses with fl exible term loans up to $100,000. is program provides assistance to individuals and busi- nesses for the purchase, construc- tion or installation of any product or equipment that allows an individual to become more independent within the community; provides mobility; promotes productivity; or improves quality of life. Businesses may use loan funds to facilitate compliance with the Americans with Disabilities Act (ADA). In FY 2016, mPower provided 43 loans to consumers totaling $392,751. The Maine Rural Development Authority (MRDA): FAME pro- vides underwriting and adminis- trative services to the Maine Rural Development Authority (MRDA). e MRDA was established by the Maine Legislature in 2002 to provide fi nancial assistance to communities and their development partners to help develop speculative commer- cial and industrial buildings and to help develop/redevelop underutilized commercial industrial properties. e primary focus of the MRDA's activities is in the rural areas of Maine that have traditionally not experienced the same level of eco- nomic development success regions as other parts of the state or have experienced major economic losses, such as plant closings and downsiz- ings or are economically distressed. In FY 2016, the MRDA provided one loan to a customer totaling $215,000. Maine offers small business help through FAME Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less Without FAME, less investment would go investment would go investment would go investment would go investment would go investment would go investment would go investment would go investment would go investment would go investment would go investment would go investment would go into Maine's economy. A lot of businesses and jobs would not exist. — Bruce Wagner FAME CEO

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