After a long wait, coworking development grants available from state
Courtesy / Arcadia designworks
A rendering shows one of the possible final designs of Our Katahdin's building at 230 Penobscot Ave. in Millinocket, where coworking space is part of the development plan. The project was one of the initial recipients of a grant from the state's Coworking Development Fund in 2015.
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Grants of up to $20,000 will be available for development or creation of coworking space, after the long-dormant Maine Coworking Development fund was refunded this year.
The Maine Department of Economic & Community Development’s Office of Business Development will oversee distribution of up to $200,000 in grants, that may be used for projects that strengthen opportunities for entrepreneurship, stimulate innovation and address regional market demand for affordable work environments that support communication, information sharing and networking opportunities.
The fund is weighted toward projects in economically distressed areas, according to the department.
The department is also launching regular get-togethers of participating coworking spaces to encourage connections and collaboration among the state's collaborative work businesses, said a news release from DECD.
The fund, which was created in 2015, provided $100,000 in grants in its first year to businesses in Brunswick, Portland, Biddeford, Augusta, Millinocket and Bethel, but was zeroed out by Gov. Paul LePage in subsequent budgets. The $200,000 approved this year is the first funding since the initial round.
The 2019 version calls for a competitive application process rather than the requests for proposals the initial fund sought. It also has more stringent application requirements and gives more weight to those starting a business rather than expanding.
Multi-faceted economy booster
Heather Johnson, DECD commissioner, said in the release that coworking Is "at the nexus of multiple areas of economic strategy — they are among the amenities that can be offered to tourists, they serve as a hub of information and community for remote workers, and they serve as a signal to entrepreneurs and new businesses that a community understands the value of connection."
Johnson added, "Coworking spaces build community and connection for early-stage entrepreneurs, freelancers and remote workers. They foster dreaming, sharing, and risk-taking through their energy, density of people, and community-building activities.”
Applications for grant funds should meet five criteria: connection to program goals, application enterprise and team, project goals and impact, economic and community impact, and business plan and budget. Projects in economically distressed geographic areas will be given additional consideration.
The funding this year was supported by Gov. Janet Mills, who "recognized that coworking is a promising opportunity for entrepreneurs," when she included it in her budget, the release said.
The bill was sponsored by Assistant Majority Leader Ryan Fecteau, D-Biddeford, who has been a strong supporter of coworking, Coworking spaces “are sought after by young professionals and are increasingly the cornerstones for communities revitalizing vacant spaces in downtowns,” he said earlier this year.
He said at the time that the build-out is frequently the biggest barrier to getting a coworking business started.
The bill passed this year also looks to track how effective the funding is. It requires, beginning in February, that the Legislature gets a report on the number of applications, how many were approved, how many workspaces were created through the fund, how many tenants and participants each one has, how many jobs were provided, the occupancy rate of each, the number of tenants who left to operate in their own space and the number of jobs those businesses have provided.
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