WASHINGTON — More than $13 million in federal small business loan money designed to aid access to needed capital is headed for Maine, state and federal officials say.
The $13.2 million will go the Finance Authority of Maine and other state and local economic development agencies, which will in turn loan the money to Maine small businesses.
The award was announced today by the U.S. Department of Treasury, Rep. Mike Michaud, D-2nd, and Gov. Paul LePage.
The goal of the federal funding is to spur $10 in additional private sector small business lending and investment for every $1 in federal funding, or more than $132 million for Maine businesses on top of the $13.2 million.
The Finance Authority of Maine will take $3.2 million of the funding and makes loans of up to $1 million each directly to businesses, according to the finance authority. The finance authority will distribute $7 million to the 14 regional economic development agencies around the state, such as the Greater Portland Council of Governments, so those local agencies then can make loans available.
Finally, $3 million will go to the Small Enterprise Growth Fund, a venture capital fund that was created by the Maine Legislature in 1995 to invest exclusively in Maine companies.
The federal money comes from a program run by the Treasury Department called the State Small Business Credit Initiative. It was created as part of a small business jobs bill approved by Congress last year.
Michaud noted that he helped pass an amendment last year ensuring that state finance agencies such as FAME and state-run venture capital agencies could participate in the federal loan program.
“Access to capital is an ongoing challenge for businesses throughout our state,” Michaud said in a statement. “This funding is going to leverage significant investments in Maine’s small businesses and help spur development and job creation at a time we need it most.”
LePage said in a statement that “Maine’s economic recovery is driven by small businesses and their vision for growth.” The federal funding will give small business owners “more resources for that growth.”
MaineToday Media Washington Bureau Chief Jonathan Riskind can be contacted at 791-6280 or at: jriskind@mainetoday.com Twitter: Twitter.com/MaineTodayDC.
Send questions/comments to the editors.
