In his first legislative session as CEO of the Finance Authority of Maine, Bruce Wagner says his message to lawmakers emphasized the agency’s effectiveness in supporting the creation of good-paying jobs through its economic development and educational/workforce development programs.“We believe FAME should be relevant to the state’s economic development efforts through good times, as well […]
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In his first legislative session as CEO of the Finance Authority of Maine, Bruce Wagner says his message to lawmakers emphasized the agency's effectiveness in supporting the creation of good-paying jobs through its economic development and educational/workforce development programs.
“We believe FAME should be relevant to the state's economic development efforts through good times, as well as bad times,” he says regarding bills the agency sponsored in the 127th Legislature's first regular session.
Wagner says one bill in particular, LD 1140, supports the Economic Recovery Loan Program, a direct loan program characterized by Investment Consulting Associates in its 2014 evaluation of the state's economic development programs as demonstrating “a strong financial end result.” The program provides gap financing to help businesses remain viable and/or improve productivity. In the last fiscal year, Wagner says, FAME made 22 loans through the program, totaling approximately $4 million, to create and retain 428 jobs.
Increasing the program's maximum loan amount from $1 million to $2 million, he says, would allow FAME to support bigger deals and reflects the agency's “new strategic plan to more actively promote economic development in the state.” The increase in loan amounts require an appropriation, general obligation bond funding or other funding in the amount of at least $13 million.
The bill awaits floor action after receiving an “ought to pass” divided report out of the Labor, Commerce, Research and Economic Development Committee.
Other bills sponsored by FAME
LD 1139: a bill that enables the issuance of tax-exempt bonds for calendar years 2015 and 2016, provides the following allocations to assist Maine students, businesses and citizens in their efforts to access low-cost financing: $40 million to FAME; $50 million to MaineHousing; $15 million to the Maine Educational Loan Authority; $10 million to the Maine Municipal Bond Bank. The bill is approved by the House and Senate and awaits action by the Gov. Paul LePage.
LD 586: legislation that allows FAME to transfer uncommitted funds in its Maine Economic Development Venture Capital Revolving Investment Program to its direct loan program for other uses, has been signed by the governor and enacted into law. This change allows FAME to deploy approximately $1.6 million in currently unused funds for direct loans to businesses through its Economic Recovery Loan Program.
LD 672: legislation that would increase the maximum loan insurance amount available through FAME from $7 million to $10 million, has been enacted and signed by the governor, but awaits the necessary funding of at least $37 million. Wagner says the measure would help FAME finance more and bigger deals to promote economic development.
Bills encouraging education and workforce development
LD 1019: the governor's two-year budget proposal, would provide $5 million in additional funding for each year of the biennium to increase awards through the Maine State Grant, a need-based grant program administered by FAME. A majority of the Education Committee has recommended increasing the appropriation by $22 million per year of the biennium in order to address the issue of college affordability. The bill awaits floor action.
LD 1360: a bill that would create the Maine Science Technology Engineering and Mathematics Loan Program to be administered by FAME, has received an “out to pass, as amended” report by the Education and Cultural Affairs Committee.
If enacted and signed into law, FAME would offer loans at varying interest rates to participating students, depending on their future employment:
• No-interest loans to Maine students who upon graduation remain in or return to Maine and work in a STEM field.
• 5% interest rates to students who remain in or return to Maine upon graduation but are not actually employed in a STEM field.
• 8% to students who end up living and working outside of Maine upon graduation, regardless of whether it’s in a STEM field.
LD 878, an enacted bill that awaits action by the governor, would enable FAME to offer for next fall a student loan consolidation/refinance program in partnership with Maine’s lending community.
Status of bills reflect actions taken prior to Mainebiz going to press on May 27, and will be updated in the online version of this story.