Maine's forest economy to get $10M in recovery funds

Courtesy / University of Maine A new Forestry Recovery Initiative has $10 million to distribute as grants to businesses recovering from harm caused by the pandemic. Here, students learn wood products manufacturing at the University of Maine in Orono.

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By Staff

The Maine Technology Institute in Brunswick announced Monday that it has established a grant program to distribute $10 million in federal money to help the state's forestry businesses recover from pandemic's economic toll.

Money for the institute’s Forestry Recovery Initiative comes through the American Rescue Plan. The program will become available in two phases, according to a news release.

• Phase 1 will provide pandemic relief for companies across the forestry industry in Maine. The deadline to apply is Jan. 31, 2022.

• Phase 2 will be a competitive grant program to improve market opportunities for Maine timber, which has suffered serious declines due to market disruptions from the pandemic, according to a separate release.

The second round of funding will support forward-looking projects that address new market demands, provide new sustainable products, or otherwise advance the long-term stability of the industry, helping to create and sustain jobs in rural Maine and strengthen Maine’s economy. These funds may also be used for infrastructure upgrades that strengthen the supply chain and help businesses pivot to new products and markets.

Phase 2 is expected to launch in early 2022, and MTI said eligibility criteria and program details will be announced in the near future.

“These grants will enable the state to provide support to as many timber-related forestry businesses as possible and provide much needed capital to stabilize and aid in the recovery of Maine’s $8.5 billion forest economy,” Brian Whitney, the institute’s president, said in the release. “The funding will help us move forward and adapt to address new market demands for the long-term sustainability of this legacy industry.”

Harvest, transport, processing

The immediate goal is to make Phase 1 awards available as soon as possible.

Businesses may be considered for a Phase 1 grant award if:

• It has a significant presence in Maine, with 25% of employees in Maine or headquarters in Maine;

• It involves the harvest; transportation, with over 50% of revenue from forestry operations; or processing of forest products utilizing Maine timber;

• It was negatively affected by the pandemic;

• It can demonstrate a clear plan to utilize the funds to directly address negative economic impacts of the pandemic, suffered by the business in Maine;

• It has fewer than 250 full-time employees;

• It is able and willing to comply with bi-annual reporting required by state and federal law.

Payroll, rent, equipment

The money can be used for a variety of purposes, including payroll, rent or mortgage, utilities, purchase of personal protective equipment, equipment purchases, investments to mitigate pandemic-related market disruptions, and inventory replenishment.

The Maine Technology Institute is now accepting applications for Phase 1. The multi-phase grant program is designed to support Maine’s forest products industry and the people it employs, create and sustain jobs in rural Maine, and strengthen the state’s economy.

Maine’s forest products industry employs tens of thousands of people and generates billions of dollars, said Gov. Janet Mills.

“It’s the lifeblood of our rural communities, and it’s why I want to make sure that we preserve these jobs for generations to come,” Mills said. “Sustaining these businesses and supporting new and innovative products will open new markets, diversify this important industry, create jobs, and strengthen rural economy.”

The design of the Forestry Recovery Initiative is the result of community and stakeholder engagement, including meetings with industry members to explore the impact of the pandemic and to discuss the types of support needed.

For more information, click here.