MTI, CEI partner for new loan program

The Maine Technology Institute and Coastal Enterprises Inc. (CEI) have partnered for a new loan program that seeks to address cash flow issues for Maine companies that receive federal grants for research and development projects.

Called the Federal Grantee Loan Program, the program aims to provide bridge financing to companies that receive grants from the federal Small Business Innovation Research, Small Business Technology Transfer and Broad Agency Announcement programs.

The goal, the organizations said, is to help these companies address cash flow issues by providing streamlined financing that will allow them to maintain cash and credit balances without having to take on high debt. The financing will be provided by CEI.

“Entrepreneurs need ready access to cash while executing their projects, and this new Federal Grantee Loan Program from CEI helps fill that need,” Brian Whitney, MTI’s director, said in a prepared statement. “We are excited to partner with [CEI] on this vital effort.”

Maine companies receive roughly $5 million to $6 million in federal SBIR and STTR grants annually, with individual awards ranging between under $100,000 and $1 million, according to MTI’s Technical Assistance Program consultant Karen West. Companies can receive even more money from BAA grants, which can be worth several million dollars or more.

Dick Clime, a development specialist at CEI, said the new program came about after CEI learned through MTI about “the financing needs of Maine entrepreneurs.” MTI, a private nonprofit that focuses on improving Maine’s technology sector, regularly works with small businesses and entrepreneurs who apply for federal grants, including for SBIR and STTR.

“We saw an opportunity to provide capital to facilitate innovation by Maine businesses that have been awarded federal monies,” he said in a prepared statement. “We now solve the cash flow problems that often go along with winning the awards and performing the work. This small initiative can provide a needed boost for start-up technology firms.”

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