A new grant program was launched this week aimed at small businesses in less populated areas of Maine with an owner in the low to moderate-income range to help with working capital during the COVID-19 pandemic.
Eligible businesses must have five or fewer employees, with an owner whose income is in the low to moderate, range as defined by the Department of Housing and Urban Development. Grants can be used for working capital, including fixed debts, payroll, accounts payable and other bills that can’t be paid as a result of COVID-19.
The program, which provides grants of up to $5,000 on a first-come, first-served basis, is through the Maine Small Business Development Centers and state Department of Economic and Community Development, and is part of the $11 million the state received through the federal CARES Act for its community development block grant program. Approximately $2 million of the allocation is being made available through the Micro-Enterprise Grant Program in partnership with the Small Business Development Centers.
Businesses are not eligible if they are in Cumberland County (except Brunswick), or in Biddeford, Auburn, Lewiston or Bangor. The ineligible communities get their own CDBG money, and therefore can’t use the CDBG money provided to the state through the Department of Economic and Community Development, said Mark Delisle, Maine SBDC state director. There are a variety of grants available, using CDBG and other money, for businesses affected by COVID-19 in those areas from a number of agencies, including the Greater Portland Council of Governments.
“We are pleased to partner with DECD on this program, which provides a unique opportunity for Maine’s smallest businesses who have not had access to as many resources during the COVID-19 pandemic,” Delisle said.Â
Business owners who are applying must meet with a Maine SBDC business advisor to determine eligibility and submit an application.Â
The money is being distributed through Androscoggin Valley Council of Governments, Coastal Enterprises Inc., Northern Maine Development Commission and Southern Maine Planning & Development Commission.
Maine has an estimated 147,000 small businesses.
The Maine SBDC provides no-cost business advising to small businesses throughout Maine through a network of certified business advisors. It is a program of the U.S. Small Business Administration, the Maine Department of Economic and Community Development and the University of Southern Maine.