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W W W. M A I N E B I Z . B I Z 17 A P R I L 3 , 2 0 1 7 along with CCML's fee load, Spies says. So far, only three of CCML's 82 projects went into default. e federal Community Renewal Tax Relief Act of 2000 authorized NMTCs as part of a bipartisan effort to stimulate investment and economic growth in low-income urban and rural communities that couldn't oth- erwise quality for loans from banks and traditional funding institutions. It expires on Dec. 31, 2019, though an extension act introduced this year would extend the credits indefinitely, according to the NMTC Coalition. It is unclear what will happen with NMTCs, as they are administered by the CDFI Fund up for big cuts under the Trump budget proposal. To date, they have been a key part of CEI and CCML financing. St. Croix Tissue benefited from the NMTC pro- gram, which Spies says typically best fits such large equipment purchases as they also must stay in place for seven years. A new subsidiary CEI's C7(a) CEO Rob Wilson says the new subsidiary gives businesses without enough collateral, that cannot show three years of profit or are otherwise risky to a traditional bank a way to get a loan. "We have a small business lend- ing license from the SBA," says Wilson, AAAENERGY.COM AUBURN, NH 603.626.4884 PITTSFIELD, ME 207.487.3706 SCARBOROUGH, ME 207.883.1473 Get it done right - the rst time Don't underestimate the impact a properly designed, installed and maintained mechanical system can have on your people and processes. Enjoy longer leases, happier tenants, more productive employees and consistent products. It's worth the investment in the long run. To learn more call 207.883.1473 or email info@aaaenergy.com HEATING AIR CONDITIONING REFRIGERATION MAINTENANCE DESIGN/BUILD TM adding there are 14 such licenses for organizations like CEI. Banks typically participate in the SBA program — about 3,000 Wilson says — which takes some of the risk out of lending to com- panies the banks wouldn't consider ideal candidates. "If we make a $1 million loan the SBA will guarantee $750,000 of it, so we bear the risk on the unguaranteed part," Wilson said. "We are the lender. e borrower pays the SBA fee up front, so they will pay a 3% fee on 75% of the guarantee. We pay half of 1% on the outstanding loan balance. ose fees cover the losses within the program." He says the SBA can only bear losses in the 2-3% range on failed businesses. "We can be 10 times more flexible than a bank in our credit deci- sions," Wilson says. His C7(a) lending ranges from $250,000 to $5 million. So far, the new C7(a) business has not closed any loans in Maine. Wilson says his company's upfront fees are its reimbursement for part of the cost of putting together the loan documents. "We make money from the spread on our cost of capital and floating rate loans based on the Wall Street Journal prime rate," he says, adding that a lot of organizations can't fill the gap for $500,000 loans. While CEI is grappling with mar- ket and government forces it hasn't had to tackle since Phillips started it in 1977, there are some things, including its overall mission, that stay the same. And the three goals, Bisson says. "I've worked with Ron for 12 years and he tells you things in groups of three," Bisson says. "He went to divin- ity school." Lori Valigra, Mainebiz senior writer / c o n t e n t s p e c i a l i s t , c a n b e r e a c h e d a t lvaligra @ mainebiz.biz and @LValigra Coastal Enterprises Inc. CEI Capital Management LLC CEI Ventures Inc. 1 CEI 7(a) Financing LLC Category Nonprofit For profit For profit For profit Services Financing, advising, policy solutions New Markets Tax Credit financing Equity investments Small business lending company Staff 58 18 3 2 Area of operation Maine, New England National Maine, New England National Organization Parent company Wholly-owned subsidiary Wholly-owned subsidiary Wholly-owned subsidiary CEI family of organizations S O U R C E : Coastal Enterprises Inc. 1 See interview on page 32

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