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W W W. M A I N E B I Z . B I Z 21 N OV E M B E R 2 6 , 2 0 1 8 F O C U S B A N K I N G / F I N A N C E because we're handing off our best clients," says Chris Linder, CEO of MaineStream Finance, a subsidiary of the nonprofit Penquis. "But if we aren't needed, that's great. We've done our job. In the meantime, we build them up and hand them off. Sometimes it takes two or three or four years, but then they refinance out." Strong demand for loans Keith Bisson, president of Coastal Enterprises Inc. and a board mem- ber for the trade association CDFI Coalition, says Maine CDFIs see strong demand for small business lending in sectors like marine and ter- restrial food production, but also from early childhood education and child- care facilities. ere's a growing trend of loan requests to finance business succession. Maine's food movement and development of clean energy industries likely represent further opportunities, especially for CDFIs' low-income market, Bisson says. Demand for CDFI services is likely to expand, says Bisson. But, like the larger finance community, CDFIs are vulnerable to political and economic uncertainties. "Like everyone, we worry about what happens if a recession comes," he says. "At the same time, CDFIs have been a positive force, as they work with busi- nesses and nonprofits and people and communities in Maine and across the country. We're focused on things that unite us, like creating good jobs in our communities and supporting innovation and services like early childhood educa- tion. ose are things that draw people together rather than divide us. So politi- cally speaking, we've had strong support even when there's uncertainty." Higher risk CDFI clients often don't have collat- eral, a down payment or a good credit history, making them a risky bet for conventional lenders. As such, they pose C O N T I N U E D O N F O L L OW I N G PA G E » 1-877-722-6243 | sbsavings.bank 1-877-722-6243 | sbsavings.bank WE MIGHT BE CUSTOMER OWNED, BUT WE'RE A FAMILY BUSINESS. Our focus is on you—our friends and families. We see how much you love it here and we do too. As the oldest bank in Maine, we've been here for over 190 years. And we'll be in it together for 190 more. 01. Biddeford-Saco Area Economic Development Corp., Saco 02. Coastal Enterprises Inc., Brunswick 03. Coastal Ventures IV LP, Brunswick 04. Community Concepts Finance Corp., Lewiston 05. Eastern Maine Development Corp., Bangor 06. Four Directions Development Corp., Orono 07. Genesis Fund Inc., Brunswick 08. Katahdin Federal Credit Union, Millinocket 09. MaineStream Finance, Bangor 10. NorState Federal Credit Union, Madawaska 11. Northern Maine Development Commission, Caribou The Community Development Financial Institutions are private-sector organizations that attract capital from private and public sources. Private sector funds come from many sources: corporations, individuals, religious institutions, and private founda- tions. CDFIs work in partnership with conventional financial institutions to channel private investment into distressed communities, either through direct investment in the CDFI or through coordination of lending, investment, and other services. In FY2017, the U.S. Treasury's CDFI Fund allowed awardees nationwide to make over 120,000 loans or investments, totaling over $5 billion, to more than 12,000 small businesses. The average size of each loan or investment was $41,744. CDFIs also financed over 27,962 affordable housing units. D E F I N I T I O N Maine's Community Development Financial Institutions S O U R C E : CDFI Coalition 6 7 8 4 1 2 10 11 5 3 9

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