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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 How small businesses tap into financing from FAME T he Finance Authority of Maine (FAME), a quasi-independent state agency now celebrating its forti- eth anniversary, is a leading financial resource that expands business and edu- cational opportunities through its will- ingness to invest at greater risk based on public benefit. FAME assists with the start-up, expansion, and growth of Maine businesses by working closely with Maine's lending community and other economic development agencies to improve access to capital. For the past eight years, FAME has been named one of the Best Places to Work in Maine. In FY 23, FAME supported over $240 million in business-related financing. This helped to create and retain approximately 3,738 Maine jobs. FAME supports Maine businesses of every kind, size, and sector. ese include companies working in Maine's traditional industries (fishing, farming, and forestry), as well as cutting-edge and targeted sectors as outlined in stat- ute and the state's ten-year economic development plan. ese include, but are not limited to, precision manufacturing, biotechnology, aquaculture, and health- care. Here is a sampling of some of these businesses by sector: Grandy Organics (The Big Barn LLC) (granola manufacturing): Located in Hiram, the company produces organic granola. FAME financing has included a Grow Maine loan for $524,858; a FAME Direct Loan for $131,214; plus an MRDA loan for $200,000 (FAME helps to administer the program). In Round 1 of rive Maine, "Bountiful Berry DBA Grandy Organics and Grandy Oats" received a loan for $922,944, as well. Katahdin Salmon Inc. (aquaculture): FAME approved a FAME Direct loan up to $110,000 to contribute to the financing of pre-construction planning and first management hires for what will become Maine's first inland land- based salmon farm. e site, formerly the Millinocket paper mill, will feature a recirculating aquaculture system (RAS) to deliver 5,000 metric tons of salmon in two stages. FAME is partnering with Maine Technology Institute, Maine Venture Fund, One North, and other investors in the financing. Kingfish Maine Inc. (aquaculture): FAME has authorized 90% pro rata loan insurance on a $2 million loan by Machias Savings Bank to support the development and construction of this land-based facility featuring vertically integrated, advanced recirculating aqua- culture system raising yellowtail kingfish in Jonesport in Washington County. e project is expected to create five to ten full-time jobs within three years and, when fully operational, is anticipated to support approximately seventy-five to one-hundred full and part-time Maine jobs. During the two-year construction period, the project is estimated (including multiplier effects) to create approximately 366 full and part-time jobs across Maine. Springworks Farm Maine Inc. (aquaponics): Springworks operates an aquaponics organic farm in Lisbon growing over three-million heads of lettuce varieties and producing approxi- mately 200,000 pounds of fish annually. Aquaponic farming involves the science of combining fish and plants in recircu- lating water-based systems. e process uses less water than traditional soil farm- ing and is considered organic since the closed loop system it utilizes eliminates the need for chemicals. FAME has approved 75% pro rata loan insurance on a $5 million loan and a $1 million line of credit by Farm Credit East for the company. e funds will help to finance the construction of an additional green- house at its Lisbon farm and to provide working capital. e action is expected to help to create approximately 40 jobs and retain an additional 40 jobs. Beansprouts Learning Center (will operate as Roselyn North Academy, a daycare facility): e borrower, who currently owns and operates two childcare centers, will be able to increase her company's capacity by 524 childcare spots to a total of 636 licensed spots for eight total centers. FAME financing will enable the company to acquire and operate six childcare centers in central and southern Maine. FAME approved two FAME Direct loans totaling $2,370,200, as well as 90% pro rata loan insurance on a $795,000 loan by Bath Savings Institution to help the borrower acquire six additional childcare centers. Further, FAME and Coastal Enterprises Inc. (CEI) are participating through the Grow Maine Program in a $1,575,000 loan. Each party will provide $787,500 in funding. CEI also is participating in one of the FAME Direct Loans, one total- ing $795,000. CEI will provide $397,500 of that loan and FAME will do the same. e financing will help to retain seventy-seven jobs and create fifty- one jobs by the end of 2024. KV Tooling Systems LLC (preci- sion tool manufacturer): KV Tooling Systems was founded in 2002 and initially operated out of its founder's basement. e business has since relo- cated to Augusta and expanded over the years and needs more space for its operations. e company provides tool re-sharpening and grinding services, custom-cutting tool design, as well as engineering and manufacturing services. e company also has in-house comput- erized design CAD capabilities. FAME approved a $600,000 FAME Direct Loan and also a $600,000 loan from the Grow Maine Program, which FAME administers utilizing federal SSBCI funds. e approved funds will help the company to meet increased demand and purchase a new computer numerical control (CNC) machine, prep and fin- ish equipment, build an addition to the property, and provide ongoing working capital. e action is expected to help to create three new jobs and retain an additional six jobs. Standard Biocarbon: (forest products) Standard Biocarbon will initially pro- duce about 18,000 cubic yards of biochar per year, with plans for phased expansion in East Millinocket and other sites. e company will supply biochar for use in agriculture, environmental remediation, and emerging applications in compos- ite building materials and pavement. Biochar does not degrade in nature, so carbon content is captured for thou- sands of years where biomass, whether burned or left to rot, soon releases all of the carbon back to the atmosphere. $2.5 million in financing was provided by three Maine-based entities to help the company purchase equipment for producing high-quality biochar at the Pleasant River Lumber mill in Enfield. Coastal Enterprises Inc. (CEI) is serving as the lead lender at $800,000, with a $800,000 participation from FAME and a $400,000 participation from Maine Technology Institute (MTI). MedRhythms Inc (tax credits): FAME approved Seed Capital Tax Credit financing for the company. ey quali- fied for approximately $1.3 million in investments and approximately $500,000 in tax credits awarded to their investors. FAME also authorized state new mar- kets tax credit financing, which resulted in approximately $1.2 million in tax credits for the company. MedRhythms, Inc. is a digital therapeutics company located in Portland. e company uses sensors, music, and software to build evidence-based, neurologic interventions to measure and improve walking. e company, which currently employs eigh- teen individuals, with thirteen full-time employees in Maine, hopes to triple its workforce in the next few years. TimberHP (GO Lab) (bond financing): FAME approved up to $85 million in tax-exempt bond financing for GO Lab Inc. (d/b/a TimberHP). FAME also approved approximately $5 million in investments and almost $2 mil- lion in credits Seed Capital Tax Credit financing for the company. FAME also participated with other economic devel- opment entities in a loan to the com- pany totaling $1.2 million, with FAME as lead lender at $500,000. Other partners in the loan include Coastal Enterprises Inc. (CEI) at $250,000, and Maine Technology Institute (MTI) at $200,000; and Eastern Maine Development Corp. (EMDC) at $250,000. e funds will be used to finance a portion of the construction costs to renovate the former Madison paper mill, purchase equipment, and other eligible costs of the business. e company plans to recycle wood fiber biomass to produce wood fiber-based building insulation products. e project is expected to create approximately 114 well-paying jobs in Somerset County. Rock Row (bond financing): FAME provided approximately $85 million in conduit bond financing for Dirigo Center Developers LLC ("Dirigo"), a subsidiary of Waterstone Properties Group Inc ("Waterstone") and devel- oper of the Rock Row project in Westbrook and Portland. e funds helped to finance public infrastructure costs, with $14.7 million to refinance bonds that FAME previously autho- rized in 2018. Infrastructure improve- ments include roads, utility upgrades, public equipment acquisition, trails, and a parking garage to support additional development on the property. e proj- ect is expected to expand and diversify the city of Westbrook's tax base, cre- ate new jobs, and significantly impact regional economic development. e first phase of the multi-use development alone helped to create up to 280 con- struction jobs, as well as an additional 813 permanent jobs related to the tenants of the development.

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