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V O L . X X V I I N O. X V I 50 Fact Book / Doing Business in Maine B U S I N E S S R E S O U R C E S assistance to communities and their partners to help develop speculative commercial and industrial build- ings 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 experi- enced major economic losses, such as plant closings and downsizings or are economically distressed. In FY 21, the MRDA provided three loans total- ing $1.5 million. Revenue Bonds Revenue Obligation Securities Program: Provides an opportunity for manufacturing businesses to access the tax-exempt bond market for funds to build and/or acquire real estate or machinery and equipment using tax-exempt Industrial Revenue Bonds issued by FAME. In FY 21, the program provided two bonds totaling $5 million. Equity Capital Maine Seed Capital Tax Credit Program: e Maine Seed Capital Tax Credit Program is designed to encourage equity and near-equity investments in eligible Maine busi- nesses, directly and through private venture capital funds. FAME may authorize state income tax credits or re-fundable tax credits to investors up to 40 percent of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research or working capital. In calendar year 2020, FAME issued approxi- mately $10.4 million in tax credits out of the $15 million that was available under law. Maine New Markets Capital Investment Tax Credit Program: Modeled after the federal tax credit, this state program is designed to attract investment in economically distressed areas of Maine. An alloca- tion of tax credits may be provided for businesses that invest in "quali- fied community development enti- ties." e credit is equal to 39 percent of the qualified amount invested, and is spread over a seven-year period, with 7% allowed in year three and 8% in each of years four through seven. e credit may not be taken in the first two years after investment. e maximum aggregate amount of tax credit authority is set forth at $250 million, and the amount of tax cred- its claimed per fiscal year limited to $20 million. In FY 21, FAME issued two credits totaling $1.16 million. 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 eco- nomic development agencies through- out the state, which themselves can be the sole lender. In FY 21, REDRLP agencies lent approxi- mately $1.9 million as part of 30 loans to Maine businesses, leveraging an additional $6.7 million of investment. This activity resulted in the creation and retention of 309 Maine jobs. In FY 21, 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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