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W W W. M A I N E B I Z . B I Z 23 M A R C H 6 , 2 0 2 3 S TA R T U P S F O C U S Smart course of action It's not unusual for Maine businesses to turn to economic development groups for financial help, Mello said, but the TimberHP financing deal is one of the largest FAME has ever participated in. In more typical cases, the quasi-inde- pendent state agency provides more modest financing as a means to help spur private investment. Other businesses FAME has worked with recently include Portland-based "biochar" maker Standard Biocarbon, tis- sue paper manufacturer St. Croix Tissue in Baileyville, eel farm American Unagi in Waldoboro, Saddleback Mountain ski resort in Rangeley and mixed-use development Rock Row in Westbrook. TimberHP products are not only made of renewable material, Henry said, but their cost and performance are comparable to leading insulation products such as foam, rockwool and fiberglass. (e "HP" in "TimberHP" stands for "high performance.") And despite being mostly wood fiber, Tim- berHP products also meet comparable standards for fire resistance. The product launch comes at a time when borrowing costs are on the rise and housing starts are expected to decline. Still, the company expects to do well because its products will be desir- able for renovation jobs as well as new construction. Henry and O'Malia are already thinking about expansion and have been eyeing the Pacific North- west as a possible target. But for now, the focus is on Mad- ison. Henry said he is grateful to the local, county and state officials who worked diligently to help the financing come together. TimberHP is planning a community barbe- cue in Madison on July 21 to cel- ebrate its grand opening and wel- come the public. "I think Maine's true advantage when it comes to doing something like this is that we don't have all the financial power that bigger and more economically robust states have, but we have each other," Henry said. J. Craig Anderson, a freelance writer, can be reached at editorial @ mainebiz.biz woodhullmaine.com Maine groups play role in TimberHP financing TimberHP has leveraged financing from several Maine-based groups to buy a defunct paper mill in Madison, source special- ized manufacturing equipment from Germany, redevelop the mill property and more: Finance Authority of Maine: $85 million in conduit bond financing; $1.9 million in Seed Capital Tax Credit financing; direct loan of $1.2 million with FAME as lead lender at $500,000 Town of Madison: $400,000 loan, which includes a Com- munity Development Block Grant contribution through the state Department of Economic and Community Development of $300,000, to be used for engineering costs Coastal Enterprises Inc.: $250,000 loan Maine Technology Institute: $200,000 loan Eastern Maine Development Corp.: $250,000 loan Maine Rural Development Authority: $500,000 loan Somerset Economic Develop- ment Corp.: $400,000 loan Kennebec Valley Council of Governors: $300,000 loan

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