DECD Announces Additional Funds to Spur New Lending to Maine Businesses, Help Create Jobs

AUGUSTA, Maine - The Maine Department of Economic and Community Development (DECD) announced Wednesday that Maine has secured an additional $4,345,555 in funding for the state's small businesses through a second disbursement from the U.S. Treasury Department's State Small Business Credit Initiative (SSBCI). "These funds will enable Maine's small businesses to leverage new capital and create more jobs," said Governor Paul R. LePage. "The program's successful deployment shows that our economy and our businesses are growing and moving in the right direction. In partnership with DECD, the Finance Authority of Maine (FAME), regional economic development agencies, and the Maine Venture Fund, small business owners will continue to have more resources for growth."

The state was awarded a total allocation of $13.2 million in September 2011. To date, the federal funds have generated $36 million in private sector financing to Maine businesses. Approximately $4 million in funding has already been disbursed to Maine businesses through FAME's Economic Recovery Loan Program, regional economic development agencies, as well as the Small Enterprise Growth Fund, d/b/a Maine Venture Fund.

"Maine job creators need access to credit and capital in order to create jobs and hire new employees,"
said DECD Commissioner George Gervais. "Maine's economic recovery is driven by small businesses and their vision for growth. Small business owners will now have more resources for that growth."

Lincoln Paper & Tissue, LLC, a Lincoln-based manufacturer of commodity and specialty tissue products, received a $970,000 loan through FAME's Economic Recovery Loan Program, of which $470,000 constituted SSBCI funds. FAME's investment has induced a commercial lender to invest an additional $6 million into the project. FAME's actions helped the mill retain 175 direct jobs and hundreds more indirect jobs in the local economy.

"Lincoln Paper & Tissue greatly appreciates FAME's assistance and commitment to the success of the mill," stated Keith Van Scotter, President & CEO. "FAME's efforts and commitment to the region will go a long way toward helping to retain good-paying jobs in the area and to a bright future for the facility."

"We are pleased that our success is being rewarded with an additional $4.3 million to fund the growth of Maine's small business community," said Bruce Wagner, Chief Executive Officer of FAME. "With the help of Maine's financial institutions, we hope to leverage these funds with private capital to generate $26 million for Maine's economy."

SSBCI was created by the Small Business Jobs Act of 2010. Funded with $1.5 billion, the program is expected to spur up to $15 billion in new lending to small businesses and manufacturers as states use federal funds to leverage private investment dollars.

DECD, in cooperation with the Finance Authority of Maine (FAME), uses SSBCI funds to support FAME's Economic Recovery Loan Program and Regional Economic Development Revolving Loan Program, as well as the Small Enterprise Growth Fund, d/b/a Maine Venture Fund. FAME's Economic Recovery Loan Program provides direct loans of up to $1 million for businesses with insufficient access to credit in order to remain viable and improve productivity. The Regional Economic Development Revolving Loan Program, also administered by FAME, provides loans to Maine's regional economic development agencies for the purpose of creating or retaining jobs. The Small Enterprise Growth Fund, d/b/a Maine Venture Fund, is a state-run venture capital fund that invests in Maine companies that demonstrate a potential for high growth and public benefit.

For more information on FAME and the Economic Recovery Loan Program and the Regional Economic Development Revolving Loan Program, please visit www.famemaine.com. For information on the Small Enterprise Growth Fund, d/b/a Maine Venture Fund, please visit www.maineventurefund.com