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V O L . X X V I I N O. V I I B A N K I N G / F I N A N C E / I N S U R A N C E G O Lab had spent three years putting together a plan to produce wood fiber insulation at the former Madison paper mill. All that was left was to finalize financing for the $65 million startup cost. When the pandemic hit, it busted the deal. "It completely changed our dynamic for the rollout," says Matt O'Malia, who founded the company with Josh Henry. Changed it in a way that was trans- formational. ere are new investors, a marketing chief who's putting the product on the national radar and a planned $100 million rollout. "We have a much better project now than we had before," O'Malia says. "It's a bigger vehicle, it's a lot more expen- sive, but it's a better fit." Last month, the Finance Authority of Maine approved $85 million in conduit bond financing through its Revenue Obligations Securities Program, matched with $30 million in equity raised by GO Lab. But that's getting ahead of the story. P H O T O / F R E D F I E L D GO Lab founders Matt O'Malia, front, and Josh Henry in the former Madison former paper mill. F O C U S What is FAME conduit bonding? F inance Authority of Maine's Revenue Obligations Securities Program provides tax-exempt bond financing to eligible borrowers with- out obligation on the part of the state. The bonds carry no liability or credit enhancement on the part of FAME or the state. FAME is a con- duit for borrowers that allows them to access favorable interest rates. The aim is to stimulate the economy and create and retain jobs. Chris Roney, FAME general coun- sel, says the program is a hidden gem that more businesses should take advantage. "It's a rare economic developer program in that companies don't have to put their assets at risk," he says. While the criteria can be nar- row, "If it fits, it's a great option." The bonds are authorized by the Internal Revenue Code in order to stimulate economic development in certain targeted industries. The Maine projects financed in recent years range from nonprofit health and higher edu- cation to solid waste improvements, public infrastructure, and manufactur- ing. Tax-exempt private activity bonds have helped create and retain thou- sands of Maine jobs over the past five years, according to FAME. A P R I L 5 , 2 0 2 1 22 Financing BUST turns into BOON When financing fell apart with the pandemic, GO Lab got creative B y M a u R e e n M i l l i k e n

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