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V O L . X X V I I N O. X V I 48 Fact Book / Doing Business in Maine B U S I N E S S R E S O U R C E S Business Programs and Services Credit Enhancement, Risk Reduction Commercial Loan Insurance Program: Loan insurance helps to cover a bank's credit risk. For a business, it may mean the differ- ence between obtaining a loan, going out of business, or never getting the opportunity to start a busi- ness. Commercial loan insurance represents the majority of FAME deals. It can help tip the balance in favor of a deal for financial institu- tions as they consider applications from business customers that don't have enough cash flow or collateral to represent a viable risk on their own. Loan insurance is available for almost any prudent business activity, and can insure up to 90 percent (100 percent for veterans) of a loan to a maximum FAME insurance expo- sure of $7.5 million. FAME makes it easy for financial institutions to apply and be approved for pro-rata and leveraged insurance. Using OnLine Answer (OLA), which is a secure web application, lenders can apply for loan insurance online by entering a limited amount of data to receive a decision in seconds. Since inception, the state has invested in this program a total of $37 million in funding, which in turn has resulted in over $634 million in loan insurance offered by FAME over the years. is insurance has supported over $1.3 billion in commercial loans to Maine businesses in partnership with local Maine lenders. In FY21, FAME provided $25 million in loan insurance to lending institutions for loans to 212 loans to 189 Maine businesses, leverag- ing $49 million in financing. This helped to create and retain 1,913 Maine jobs. How small businesses tap into financing from FAME FAME customer profile: SADDLEBACK D espite the challenges posed by the pandemic to many Maine businesses, a bright spot over the past year was the re-opening and success of Saddleback Ski Resort in Rangeley. FAME was pleased to be part of that effort, along with many other financing partners. In January 2020, FAME approved leveraged loan insurance of 20%, or $2.5 million, on a $12.5 million loan by Arctaris Impact Investors LP to Saddleback Community Loan Fund. FAME additionally approved a $1 million FAME Direct loan to Arctaris Saddleback Co. LLC, the owner and operator of the resort. The financing package totaled $3.5 million. The Maine Rural Development Authority approved a $1 million loan to Arctaris Saddleback Co. LLC, as well. FAME subsequently approved state new markets tax credit financing to benefit the project. In addition to helping Arctaris to purchase the mountain and resume operations at the ski resort, the financing has helped to benefit area businesses and stimulate the local economy. Skiing at the mountain resumed on December 15, 2020 after having been dormant for five seasons and, by all accounts, the season exceeded man- agement's expectations. "We are pleased to have helped to re-start this historic and beloved Maine ski mountain and to help stimulate economic development in Western Maine," says Carlos R. Mello, Acting CEO of FAME. "We know how important this mountain's success is to the local community and economy, as well as to many oth- ers who love to recreate in all seasons in the Rangeley area." Saddleback has made a number of improvements at the resort, including updates to the base lodge; a new lift; expanded snowmaking; a new grooming fleet; and increased four-season destination programs for weddings and functions. P H O T O / C O U R T E S Y O F B R A D C U R R I E Saddleback's ribbon-cutting in December 2020. T he Finance Authority of Maine, a quasi-independent state agency, is a lead- ing financial resource that expands business and educational opportunities through its willingness to invest at greater risk based on public benefit. FAME assists with the startup, expansion and growth of Maine businesses by working closely with Maine's lending community to improve access to capital. For the past six years, FAME has been named as one of the "Best Places to Work in Maine." In FY21, FAME supported the issuance of $54 million in debt capital to 211 Maine businesses, helping to create or retain 2,623 Maine jobs.

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