Mainebiz

W W W. M A I N E B I Z . B I Z 53 Fact Book / Doing Business in Maine B U S I N E S S R E S O U R C E S Cooperative programs Regional Economic Development Revolving Loan Program: Provides subordinate and/or gap financing up to $350,000. e program is offered through the various regional economic development agencies throughout the state. In calendar year 2018, REDRLP agencies lent approximately $4.1 mil- lion as part of seventy-one loans to Maine businesses, leveraging an addi- tional $19 million of investment. is activity resulted in the creation and retention of 516 Maine jobs. Municipal Securities Approval Program: Provides an opportunity for municipalities to issue tax-exempt Industrial Revenue Bonds for non- profits or manufacturing borrowers wishing to develop and/or acquire real estate or machinery and equipment. In FY 18, bonds issued for a non-profit entity by municipalities with FAME assistance totaled $10 million. Natural Resource Based Business Outreach FAME annually engages in a vari- ety of natural resource-based busi- ness outreach efforts. As in the past, FAME helped to staff a booth at the annual Agricultural Products Trades Show in Augusta in January. We also assisted the Department of Agriculture, Conservation and Forestry with five Agricultural Marketing Loan Fund (AMLF) loans totaling $632,200. FAME continues to support the Potato Board and the department by administering the Potato Marketing Improvement Fund (PMIF), as well. We also helped the department set up the new Dairy Improvement Fund, which we will administer in partnership with them, as well. It will help farms and other dairy enterprises fund capital improvements to maintain and enhance the viability of their farms. is past fiscal year, through FAME's direct loans and commercial loan insur- ance, we provided $4,142,519 in financ- ing to 36 natural resource companies. Included in these projects were Maine Huts and Trails; J.L. Rich Timber Harvesting LLC; Salmon Falls Nursery Inc.; No Sympathy Lobster Inc.; and Agri-Cycle Energy. FAME has supported Agri-Cycle Energy through FAME's Direct Loan, SSBCI funding, and Commercial Loan Insurance Programs. e com- pany, which is based in Portland, has become a dominant organic waste collection company by establishing an interconnected footprint across New England. ey have a disposal rela- tionship with six regional anaerobic digester systems, including a co-owned anchoring facility in Exeter that gen- erates three megawatts of electricity powered by organic waste. FAME also approved loan insurance in partnership with Machias Savings Bank on a loan to Andrew Eaton for the purposes of financing a new 48-foot vessel. Andrew is a young lobsterman fishing out of Deer Isle. e new boat will provide him more room to maneuver traps and allow him to fish in deeper waters and offshore throughout the winter. Adaptability and partnerships FAME welcomes suggestions of Maine's community lending institu- tions for improving existing services and creating new ones through its Lenders' Advisory Group. Representing lend- ing institutions of all sizes, geographic locations, and levels of FAME usage, the Lenders' Advisory Group contin- ues to be helpful in FAME's efforts to develop and adapt programs to assist lenders in providing loans to their customers. FAME consults periodically with this group and also utilizes focus groups to ensure that it is providing required resources for Maine businesses of all types. If gaps are revealed, FAME then utilizes its FAME Direct Loan program and/or its Commercial Loan Insurance Program creatively to meet those needs. FAME continually evaluates its product and program offerings and, based on comments received through many of our "Voice of the Customer" interviews conducted in the recent past, and in conjunction with the Lenders' Advisory Group, recently implemented several new services through our Online Answer (OLA) Program. First and foremost among these is allowing our lending part- ners to avail themselves of Leveraged Insurance through OLA. Additionally, FAME now offers up to 75% insurance for up to $750,000 of FAME exposure (up from $350,000 at 75% coverage). Moreover, and as a result of input from our lending partners, FAME now offers one-time, up-front fees along with three or five- year exposure for term loans, as well as three-year terms for lines of credit. As previously stated, these fees will actually be a discount from what the institutions would have paid over the cost of annual fees, and the five-year term will actually cost the same as four years of annual fees. FAME decided to keep these fees competitive, and will not be establishing a "portfolio" fee for our lending partners as does the SBA presently. Finally, in an effort to meet the needs of our cohort, FAME has incorporated a continuing program called New Product Development and Launch (NPDL) through which we are planning for the future with new product offerings. At our initial meeting to help determine potential additional FAME programs, staff brainstormed an initial list of possible new products totaling eighty. FAME also continues to partner with regional economic development agencies throughout the state. Over the past several years, FAME has worked closely with these agencies and continues to partner with them by utilizing an ability to "participate" a loan among a number of agencies to fund and track loans to mutual customers using one set of docu- ments, having one closing, and mak- ing one payment that will then be applied to the various loans compris- ing the borrower's financing pack- age. rough many of these regional economic development agencies, the Maine Venture Fund (MVF), and in conjunction with the utilization of the FAME Direct Loan program, FAME has successfully attracted the final tranche of $4,477,240 under the State Small Business Credit Initiative sponsored by the federal government. e total amount brought to the state through the SSBCI is $13,168,350. FAME is committed to ensur- ing that the state's resources are used most effectively for Maine businesses, and utilizes customer reviews and evaluations to improve its services to the citizens of Maine. FAME will continue to work closely with other departments and agencies, such as the Department of Economic and Community Development and the Department of Agriculture, Conservation and Forestry, to provide its expertise and assistance in com- mercial finance. Alfond Leaders Program In February of 2017, the Harold Alfond Foundation and FAME announced a partnership for a new statewide program called Alfond Leaders. It is a student loan repay- ment program designed to provide student loan debt relief for Maine res- idents who are employed by a Maine- based business in the STEM-related fields of science, technology, engineer- ing, and math. e Alfond Leaders program, administered by FAME, assists Maine employers in attracting and retaining talented STEM profes- sionals by providing student loan debt relief of up to $60,000 per recipient. e grants are awarded through a competitive application process with the goal of selecting approximately 150 Alfond Leaders over the next three years. e program has an 8% accep- tance rate, with 91 out of 1,200 appli- cants accepted thus far for an average award of almost $32,000. FAME customer profile Front Street Shipyard is a full-service boatyard located in Belfast with 1,500 feet of frontage on Penobscot Bay. It is an expansive, thriving yard with deep-water frontage, state-of-the- art equipment and a growing work- force. e business operates a yacht yard, marina and storage facility on Penobscot Bay. Front Street provides services for various types of vessels ranging from small recreational boats to commercial vessels and supery- achts. e yard's team of more than 100 experienced boat service profes- sionals uses both advanced compos- ite construction and traditional boat building techniques. FAME assisted the company in March 2018 with commercial loan insurance in partner- ship with Androscoggin Bank to help construct a 23,000-square-foot assem- bly and storage building. e proceeds of the loan were used to purchase land and construct a building to accommo- date larger vessels, including luxury yachts, ferries, Coast Guard boats and other vessels which cannot be housed in the existing buildings.

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