Recent News Posts

Items of Interest for March 5, 2010:

Response to Bangor Daily News Editorial

Governor Baldacci Nominates New Appointments to the FAME Board

Harold Alfond College Challenge - Casting Calls in Waterville and Portland

AUGUSTA — Despite the challenging economy, the Finance Authority of Maine (FAME) has recorded an unofficial decline in its student loan default rate.  According to data recently released by the U.S. Department of Education, FAME’s draft student loan cohort default rate fell to 6.1% of borrowers who entered repayment during federal Fiscal Year 2009, a decline from the 7.9% rate posted last year for the previous cohort of borrowers.  It is the lowest rate posted by FAME since 2005.

The new figure is below the FY 2007 national average rate of 6.7% for all guarantors.  Although many borrowers nationwide are experiencing difficulties with repayment in the stubborn recession, FAME has improved its default rate as a guarantor in the Federal Family Education Loan Program (FFELP).  In Maine, there were 1,128 more borrowers who entered repayment in FY 2008 and 72 fewer borrowers than the previous year who defaulted.

Cohort default rates measure the percentage of all federal Stafford Loan borrowers entering repayment in a given federal fiscal year who default on their loans before the end of the following fiscal year.  Official cohort default rates won’t be released by the U.S. Department of Education until September 2010.  Draft rates are released in mid-February each year and typically serve as good indicators of the subsequent official numbers. 

FAME’s lower than average default rate is the result of its expanded outreach and default prevention services that support financial aid offices and educate borrowers.  Because of these efforts, many Maine colleges experienced lower default rates than the previous year.  FAME’s ability to maintain a low claims rate saves Maine taxpayers millions of dollars each year by reducing claim payments from the U.S. Department of Education.  It also directly benefits borrowers, schools and lenders. 

“We are proud of our low default rate, especially in these challenging economic times.  FAME’s emphasis on default prevention rather than on post-default collection is the right one for guarantors, schools, lenders and taxpayers,” stated FAME CEO Beth Bordowitz.  “FAME’s business model puts the needs of student loan borrowers first, where they should be,” she added.  “Eliminating these important services, as contemplated by pending federal legislation, would have a negative impact on Maine students and schools.”

Items of Interest for February,  2010:

FAME Commerical Loan Activity

Underound Oil Storage and Tank Replacement Program

Legislative Update

Items of Interest for February 2, 2010:

Education Program Applications Available Online

State Legislative Update

Washington DC Update

The Finance Authority of Maine (FAME), which administers state and federal college grants and scholarships, is urging Maine residents of all ages who are interested in college or post secondary education to explore all free resources before paying for private services.

Some local and national organizations are charging hundreds of dollars for seminars or individual assistance to research scholarships, loans or to complete the Free Application for Federal Student Aid (FAFSA), which is required by most educational institutions. FAME maintains that, due to the abundance of reliable, free help from professionals who work in college financing statewide, there is no need for families or students to pay for services.

“College can be an expensive undertaking. We encourage Maine families and students to take advantage of the extensive free assistance and resources available before paying for similar services,” says FAME Chief Executive Officer Beth Bordowitz. 

High school guidance counselors and college financial aid offices can be very helpful with the financial aid application process. FAME’s education counselors offer advice free of charge, as well as a free Financial Aid Toolkit on request. The free publication includes scholarship information, which can also be researched using free web-based search engines.

FAME will once again sponsor free College Goal Sunday seminars at twenty-two locations throughout the state on January 31, 2010 at 2 p.m.  College Goal Sunday provides line-by-line assistance with the FAFSA by financial aid professionals from many Maine colleges and universities. The FAFSA form is required by most schools for financial aid consideration.

Four of the sites will rely on the state’s interactive television (ITV) system to broadcast the free program for public viewing. Some sites will use computer labs, allowing participants to access and complete the FAFSA online during the seminar. All attendees are encouraged to bring recent tax information or estimates. Individual questions can be addressed following the group presentation.

Financial assistance can come from a variety of resources, including grants, scholarships, federal student loans, campus work study jobs and private or alternative loans. Application deadlines vary at each school. Students are urged to contact schools directly about filing deadlines. “Applying for aid on time and as early as possible is as important as ever,” added Bordowitz.

To learn more about the program, or for directions to a convenient location, please visit "http://www.collegegoalsundaymaine.com/" or call FAME toll free at 1-800-228-3734.

Items of Interest for January 19, 2010:

Common Manual Updates

State Legislative Update

Washington DC Update

Items of Interest for January 5, 2010:

College Goal Sunday

Education Portal Information Center (EPIC)

2,500 Maine Babies Enrolled

Items of interest for December 10, 2009:

FAME Wednesday Webinar

State of Maine Grant Payment Processing

Outreach Update

FAME is excited to announce the creation of a high school version of its popular “Get a Life” game.  This interactive financial literacy game was originally created primarily for middle school students and has now been expanded to teach high school students the basics of money management. 

Through this game, students learn about potential career options, college aspirations and financial education; including budgeting, wants vs. needs and the consequences of making choices.  Most importantly, “Get a Life” encourages conversation among students regarding career goals and aspirations, while emphasizing the importance of making the right choices in order to have as many options in life as possible. 

Both versions have also been updated to reflect current median salary in Maine, as well as important additions to the career selections.  The new version has already been introduced to the high school audience and has proven to be a great success.  For more information, please contact Angela Dostie.

The Finance Authority of Maine (FAME) today announced the creation of a comprehensive default prevention and outreach program, “GOAL$,” which stands for “Great Opportunities to Achieve Life Success.”

FAME created the program in light of the following statistics:

• Maine has the 7th-highest student debt level nationally (source: Project on Student Debt, Sept. 2007).
• The average debt for a Maine student is $ 22,877.
• 72% of Maine students graduate with some form of student loan debt (source: Project on Student Debt, Sept. 2007).
• 36% of Maine colleges have cohort default rates that are higher than the national average of 4.6%.

Through “GOAL$,” FAME is renewing its commitment to college access, financial literacy, and default prevention by implementing a series of new initiatives such as:

• naming Angela Dostie to fill the new position of Outreach & Default Prevention Manager.  Angela brings more than 10 years of financial aid experience to the position;
• recently hiring Mary Dyer for the new position of Default Prevention Specialist to implement a comprehensive default prevention program at FAME.  Mary has significant experience in college financial aid;
• expanding programs designed to assist high-risk borrowers during their grace periods;
• creating on-line Alternative Loan Counseling & Money Management tutorials for students;
• providing new financial literacy tools, publications and training;
• expanding college access, outreach & default prevention content on FAME’s website, www.famemaine.com; and
• increasing college access, outreach & training services to schools throughout Maine.

FAME recently earned the distinction of having the second-highest recovery rate in the nation in the Federal Family Education Loan Program (FFELP) for the federal fiscal year ending September 30, 2007.  Through FAME’s recovery efforts, borrowers who are in default on their Federal Family Education Loans can restore their loans to good standing and, as a result, avoid many of the negative aspects of default such as damaged credit and loss of Title IV aid eligibility. 

"FAME is aggressively taking steps to educate and assist Maine students and families as they navigate the complex world of student loans,” stated FAME Acting CEO Beth Bordowitz.  “We are pleased to offer ‘GOALS’ as a comprehensive default prevention and outreach program so that borrowers may avoid defaulting on their loans and may adopt healthy fiscal habits early on.”

College Goal Sunday is another resource FAME annually coordinates for Maine students and their families.  College Goal Sunday is a statewide volunteer program that provides free information and assistance to students and families who are applying for financial aid for post secondary education.  The program brings together financial aid professionals from colleges and universities, along with other volunteers, to help college-bound students and their families complete the Free Application for Federal Student Aid (FAFSA) form.  This year College Goal Sunday will take place on Sunday, January 27, 2008 at 2 p.m. at various locations throughout the state.  FAME also has made available several interactive television (ITV) sites for more rural areas.  To learn more about the program, or for directions to a location near you, visit www.collegegoalsundaymaine.com.  Interested individuals also may contact FAME at 1-800-228-3734 or by email at education@famemaine.com.

The Finance Authority of Maine (FAME) was recognized as a regional winner at The Bond Buyer’s 2009 Deal of the Year Awards ceremony held December 1 in New York City.

FAME was selected as a Northeast regional finalist through a competitive process as part of the newspaper’s eighth annual Deal of the Year Award.  All regional finalists were considered for the publication’s overall Deal of the Year Award, as well, which FAME did not win.

The awards recognize some of the nation’s most innovative municipal bond issuers.  The 2009 awards considered deals that closed between October 1, 2008 and September 30, 2009.  Over sixty nominations were submitted.  Two finalists were selected from each region covered by the paper:  a large issuer and, in FAME’s case, a small issuer of bonds.

 Award entries were evaluated by The Bond Buyer’s editors and bureau chiefs, who considered innovation, efforts by government issuers to accomplish their goals in challenging times, the ability for a deal to serve as a model for other financing, and the public purpose for which a transaction’s proceeds were used.

FAME was recognized for its role issuing $14,495,000 in taxable waste motor-oil revenue bonds to help finance important environmental clean-up at a variety of Maine waste-oil disposal sites.  The Maine Legislature imposed premiums on certain motor vehicle oil transactions to fund the costs of bond payments. 

From approximately 1969 to 1980, a waste oil recycling business improperly disposed of oil at various Maine sites, contaminating soil and groundwater.  The federal and state governments have negotiated response cost recovery and liability settlements with a number of parties.  The bonds will be used to pay a portion of the remediation costs.

“FAME’s financing through the waste oil clean-up program helped our company meet its obligations under the law and the unexpected costs that resulted from waste oil disposal,” stated John B. Darling, Chairman of the Board of Darling’s automotive group in Brewer.  “The recent issuance of bonds will help clean the environment and assist Maine businesses in paying the costs of remediation.”

“We are honored to accept this award on behalf of the State of Maine,” stated Beth Bordowitz, FAME’s Chief Executive Officer.  “FAME was pleased to collaborate with many statewide partners to address environmental damage and financially assist numerous, well-intentioned Maine towns, school districts, and businesses left responsible for the clean-up.  The award recognizes innovative bond financing in challenging economic times, and we are pleased to have played a role in that.”

The Bond Buyer is SourceMedia’s 118-year-old daily newspaper covering the municipal finance industry.  For more information on the paper, please visit www.bondbuyer.com

The Finance Authority of Maine (FAME) currently is displaying the work of J. Donna Asmussen, a professional Maine artist specializing in watercolor, with additional focus in printmaking. 

FAME Customer Service Associate Becky MacKenzie, who helped organize the display, stated:  “FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others.” 

A painter and printmaker, Ms. Asmussen works mainly from her home studio in Smithfield.  Before becoming involved in the arts, she worked in education as a teacher, school administrator, and consultant for many years in Rhode Island and Maine.  She studied oil painting briefly in Rhode Island while a public school teacher and currently studies watercolor with Stan Keirstead in Western Maine and printmaking with Scott Reed at Colby College.    

Ms. Asmussen’s background in education has led her to continue her connections with local schools and libraries, loaning them original works to encourage children to experiment with art.  A variety of her works can be viewed on her website at www.artjourneyer.com. 

Artwork currently displayed at FAME includes original watercolors and prints inspired by the ever-changing seasonal beauty of both inland and coastal Maine; and a series of small pen and ink images, washed with watercolor, capturing local landmarks in the Belgrade lakes area.  Prints and cards for purchase are available in the FAME lobby, as well.

The public may view the exhibition Monday through Friday from 8:00 AM to 5:00 PM.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off 95.  The exhibit is open to the public through December 31, 2009, with a reception planned for December 3rd from 5-7PM.

To learn more about FAME Art Exhibits and openings, or if you are an artist who would like to have your work considered for exhibition, contact FAME at 1-800-228-3734.

The FAME Board held its annual meeting Tuesday, November 10, 2009, at Portland’s Holiday Inn by the Bay.  The Board elected new officers and approved financial assistance for a number of Maine companies. 

Elected as officers for 2010 are:  Glenn Lamarr of Fort Kent, Chair; Susan Snowden of Scarborough, Vice Chair; and Cheri Walker of Portland, Treasurer.

The Board also approved several proposals to assist Maine businesses during these challenging economic times.

The Board approved commercial loan insurance on two loans from Farm Credit of Maine totaling $2.15 million for LMJ Enterprises, LLC.  The insurance will help the company, which produces pine shavings for large animal bedding, construct a manufacturing facility in Lincoln.  LMJ plans to create ten jobs. 

Also approved was an economic recovery loan of $500,000 to Montreal, Maine & Atlantic Railway, Ltd.  The loan will help fund working capital and approximately 200 miles of track maintenance in Maine.  Until the track resurfacing occurs, train speeds will remain lowered and delays in freight transportation will continue.  A total of 210 jobs will be retained as a result of FAME’s action.

“We are pleased to assist these Maine companies in their efforts to succeed in a challenging economic environment and maintain good-paying jobs,” stated FAME Board Chair Glenn Lamarr.

The Board also approved a new round of investments totaling $985,000 as part of the Maine Economic Development Venture Capital Revolving Investment Fund Program (VRIP).   Created by the Legislature in 1995, VRIP allows the state to invest as an equal partner in eligible private venture capital funds to support emerging and early-growth businesses in Maine.  It utilizes experienced, professional fund managers to increase the probability of successful investments in Maine companies.  FAME approved applications for investments in the Borealis Fund III, LP and Coastal Ventures III, LP.  Since 2000, FAME has invested $3 million in five separate venture capital funds.  These funds have, in turn, collectively invested almost $13 million in various Maine companies. 

FAME Chief Executive Officer Beth Bordowitz stated:  “FAME is pleased to facilitate further participation in the VRIP program using returns from successful past investments.  FAME is committed to supporting emerging and early-stage Maine businesses, especially in this challenging economy.”

Also on November 10, FAME held its annual dinner and awards program, “Showcase Maine.”  Approximately 250 leaders in government, business and higher education attended the event.  In addition to hosting a reception showcasing various Maine business and educational organizations, FAME presented a number of awards to Maine business and higher education leaders.  This year’s recipients included:  Western Mountains Charitable Foundation, also known as Maine Huts & Trails (Business at Work for Maine Award), a nonprofit entity working to build and operate a year-round, 180-mile recreational corridor in Western Maine; Maine College Transitions Program (Education at Work for Maine Award), a comprehensive program of adult education study, career planning and coaching to encourage enrollment in postsecondary institutions; John Burns, fund manager of the Small Enterprise Growth Fund (Dirigo Business Award), a state-sponsored venture capital fund, who has assisted numerous Maine start up companies in obtaining capital; Carolyn Dorrity, former head of the Acadia Health Education Coalition (Dirigo Education Award), who introduced health careers to Maine students and worked tirelessly to create and support opportunities for clinical mentorships; and Camden National Bank (Financial Institution of the Year Award), which has  worked closely with FAME to provide numerous insured loans to Maine’s small businesses, including the fishing and tourism industries.

Dr. Sandy Baum, a senior policy analyst at the College Board, delivered a keynote speech entitled “Investing in Higher Education:  The Future of Our Economy.”  Dr. Baum, an expert on student aid policy and higher education finance, underscored the value of investing in higher education in a challenging economy.

Items of interest for the November 10, 2009 edition:

Get A Life Expanded

Outreach Update

Future Faces of Maine

The Finance Authority of Maine (FAME) has announced that its annual meeting and awards event, Showcase Maine, will be held Tuesday, November 10, 2009, from 4:30 p.m. to 7:45 p.m. at Portland’s Holiday Inn By the Bay.

Showcase Maine is a celebration of the many successful partnerships FAME has forged over the past twenty-six years with Maine’s business and higher education communities. 

The evening will feature a reception, including displays by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech entitled “Investing in Higher Education:  The Future of Our Economy” by Sandy Baum, Ph.D, a senior policy analyst with the College Board.  Dr. Baum is the co-author of the College Board publications Trends in Student Aid, Trends in College Pricing, and Education Pays:  The Benefits of Higher Education for Individuals and Society.  She has written extensively on issues relating to college access, college pricing, student aid policy, student debt, affordability, and other aspects of higher education finance.

“We look forward to celebrating FAME’s many partnerships that will help Maine endure this challenging economic time and come out stronger,” stated Beth Bordowitz, FAME’s CEO.  “Crucial to FAME’s success in providing innovative financial solutions to Maine’s business and higher education communities are the relationships we’ve forged over the years.  Together we make business and education work for Maine’s economy.”

In addition to the reception showcasing various Maine business and educational organizations, the evening will feature the presentation of a number of awards by FAME.  This year’s award recipients include:  Western Maine Charitable Foundation, also known as Maine Huts & Trails (Business at Work for Maine Award), a nonprofit entity working to build and operate a year-round, 180-mile recreational corridor in Western Maine; Maine College Transitions Program (Education at Work for Maine Award), a comprehensive program of adult education study, career planning and coaching to encourage enrollment in postsecondary institutions; John Burns, fund manager of the Small Enterprise Growth Fund (Dirigo Award), a state-sponsored venture capital fund; Carolyn Dorrity, former head of the Acadia Health Education Coalition (Dirigo Award), who introduced health careers to countless Maine students and worked tirelessly to create and support opportunities for clinical mentorships; and Camden National Bank (Financial Institution of the Year Award), which has worked closely with FAME to provide numerous insured loan products to Maine’s small businesses.

Items of interest for the October 13 edition:

FAME's Annual Showcase Maine

EPIC Online System

Outreach Update

FAME's annual meeting, Showcase Maine, will be held on November 10, 2009 at the Holiday Inn By the Bay.  We are pleased to have Dr. Sandy Baum as the keynote speaker this year.  Her topic will be Investing in Higher Education: The Future of Our Economy.  Dr. Baum is a Senior Policy Analyst at the College Board and former Professor of Economics at Skidmore College.  She has written extensively on issues relating to college access, college pricing, student aid policy, student debt, affordability, and other aspects of higher education finance.

Dr. Baum is the co-author of Trends in Student Aid, Trends in College Pricing, and Education Pays: The Benefits of Higher Education for Individuals and Society for the College Board. Other recent work includes studies of setting benchmarks for manageable student debt levels and of tuition discounting in public and private colleges and universities. She co-chaired the Rethinking Student Aid study group, which recently issued comprehensive proposals for reform of the federal student aid system.

More details and registration will be available soon.

Items of interest for the September 29 edition:

New FAME Web Site

2009 Financial Aid Tool Kit available

Online database transitions to EPIC

D.C. Update

GOAL$: Financial aid nights begin 

FAME is pleased to introduce our newly re-designed Web site.  This grant-funded initiative represents our commitment to providing Maine citizens with easy-to-find information and resources.  This is only the first stage of our re-design, however, as we also will be including new functionality and features during the coming months.  Please share comments or suggestions at info@famemaine.com.

Governor John E. Baldacci issued a proclamation today naming September 2009 as College Savings Month in Maine.  The Governor spoke at a brief ceremony marking the 10th anniversary of Maine’s college savings plan, the NextGen College Investing Plan.®  Launched a decade ago, NextGen is the fifth-largest college savings plan in the nation, with more than $4.4 billion in assets.

“September is back to school and it is also time to take action on college savings,” Baldacci said.  “With NextGen firmly established and ever-evolving over the past 10 years, our citizens have the best opportunity and a firm foundation to help pay for a college education.  Being able to save for college tuition now can be a big help later in life.”

The Governor presented the proclamation to Beth Bordowitz, CEO of the Finance Authority of Maine, during a ceremony at the State House.  Also in attendance was Tammy and Christopher Creswell, NextGen account owners who live in St. Albans.  The Creswell’s two children for whom the college savings accounts were opened also attended the ceremony.

NextGen was created by the Maine Legislature in 1999 as a qualified tuition program, and is designed to help families prepare for higher education expenses.

“NextGen is a successful program that has become even more vital as college tuitions rise,” said Bordowitz.  “FAME is proud to play a role in helping so many Maine students reach their college dreams.”

NextGen is a Section 529 plan administered by FAME, with Merrill Lynch as the program manager.  NextGen's earnings are state and federal income-tax-deferred, and are tax-free so long as the withdrawals are used for qualified higher education expenses.

Governor Baldacci noted that among other NextGen benefits to residents, the Harold Alfond College Challenge enables Mainers to easily augment their savings for their children’s education.  This first-in-the-nation program provides a $500 grant for every Maine newborn to start a NextGen savings account for future college expenses.  There are no income limits to participate in the program.

Other NextGen benefits for Mainers currently include:
• A one-time $200 initial matching grant to help Maine families with adjusted gross incomes of $75,000 or less open their NextGen account;
• Up to $250 per year, per beneficiary, tax deduction for Maine taxpayers who make contributions to a NextGen plan;
• Waiver of the annual account maintenance fee;
• Direct deposit available for Maine income tax refunds;
• For Maine workers, Life-long Learning Accounts that provide employer-matched individual NextGen accounts to help employees upgrade their skills and education while meeting the demands of businesses for a skilled workforce; and
• Annual need based scholarships for qualifying Maine students.

The Finance Authority of Maine (FAME) announced that recent improvements to its Regional Economic Development Revolving Loan Program (REDLP) will take effect September 14, 2009.  The modifications result from enactment last spring by the Legislature and Governor John E. Baldacci of Public Law 2009, Chapter 131, An Act to Modify the Regional Economic Development Revolving Loan Program.

REDLP, created by the Legislature in 1993, is designed to make loans through Maine’s regional economic development agencies for the purpose of creating or retaining jobs.  FAME makes disbursements to regional economic development agencies and the agencies, in turn, make loans to eligible borrowers.

“FAME is pleased to offer an enhanced REDLP to better meet the needs of Maine’s regional economic development agencies and the businesses they serve,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME is committed to partnering with these local agencies and supporting Maine’s small businesses in this challenging economy.”

The new law has two components.  The first is geared toward meeting the credit needs of businesses in this challenging economy.  Through June 30, 2010, participating regional agencies will be able to make loans to almost any eligible Maine business, regardless of size or sector, with certain limited exceptions.  Commencing July 1, 2010, the program will revert back to its original purposes, with modifications to update the program.

The changes include:  increased maximum fund disbursements to regional economic development agencies; amended financing terms and conditions; expanded eligibility for projects, especially Maine’s targeted cluster industries such as composites, energy, and marine and biotechnology; and expanded business eligibility for program funds. 

The program enhancements, which won broad support in the Legislature, result from the combined input of various Maine regional economic development agencies.

“These sensible, no-cost changes to REDLP are ways by which FAME, in partnership with regional economic development agencies, is addressing the capital needs of Maine’s small businesses during these challenging economic times,” stated Will Armitage, Executive Director of Biddeford-Saco Area Economic Development Corporation, which participates in the program.

From 1996 through 2007, REDLP provided 535 loans totaling $27 million.  These loans in turn leveraged an additional $218.1 million in investments and created and retained a total of 9,104 Maine jobs.  Interested parties should contact their regional agency for information and applications regarding REDLP.

The Finance Authority of Maine (FAME) is requesting additional applications by private venture capital funds as it prepares to deploy up to $985,000 in additional funds through its successful Maine Economic Development Venture Capital Revolving Investment Program (VRIP).

VRIP, created by the Legislature in 1995, allows the state to invest as an equal partner in eligible private venture capital funds to support emerging and early-growth businesses in Maine.  It utilizes experienced, professional fund managers to increase the probability of successful investments in Maine companies.  The American Heritage® Dictionary of the English Language (Fourth Edition) defines venture capital as “money made available for investment in innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit may be considerable.”

"FAME is pleased to invite further participation in the VRIP program using returns from its past investments,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME is committed to supporting emerging and early-stage Maine businesses, especially in this challenging economy.”

Since 2000, FAME has invested $3 million in five separate funds:  The Borealis Fund, L.P.; Brook Venture Fund II; CEI Community Ventures, LLC; Coastal Ventures II, LLC; and Masthead Venture Partners Capital, L.P.  These five funds have collectively invested almost 13 million in various Maine companies. 

The $980,000 in additional, planned FAME investments results from successful returns on the program’s previous investments.

FAME will be accepting applications to VRIP through noon on September 18, 2009, with the expectation of making investment decisions in November.  Interested parties may request an application by calling FAME at (800) 228-3734 or by visiting the VRIP section of FAME’s Web site at www.famemaine.com.

The Board of Directors of the Finance Authority of Maine (FAME) recently approved commercial loan insurance on a Skowhegan Savings Bank loan to Saddleback, Inc. and Saddleback Land and Timber Corporation (Saddleback) for the operating needs and expansion of the Western Maine ski resort facility.  FAME also has adopted a new refinancing program for FAME-approved lenders that is designed to help lenders and borrowers succeed in current economic conditions.

FAME has agreed to provide 90% insurance on a $3 million loan by Skowhegan Savings Bank to Saddleback, which plans to expand its current operations and create a four-season destination facility in the Rangeley lakes area.

“We are pleased to assist Saddleback as it continues to improve operations at this renowned Maine mountain,” stated FAME Board Vice Chair Glenn Lamarr.  “FAME is very supportive of increased economic development in the Rangeley area and the retention and creation of an estimated 200 full and part-time jobs at the resort.”

“We are grateful for FAME’s assistance and excited about Saddleback’s plans for the future,” stated Warren Cook, CEO and General Manager of Saddleback.  “FAME’s actions will help us maintain and create good Maine jobs while expanding operations.  Saddleback has a storied Maine history and now, thanks in part to FAME, a bright future, as well.”  

Saddleback Mountain offers a 2,000-foot vertical drop and is one of seven New England mountains with a top-lift elevation of over 4,000 feet.  Saddleback has made a number of improvements over the last several years, including construction of a new base lodge and new lifts; expanded snowmaking; a new grooming fleet; and increased four-season destination programs for weddings and functions.  To learn more about Saddleback, please visit www.saddlebackmaine.com.

The FAME Board also has approved modifications to FAME’s current loan insurance policy that will allow FAME-approved lenders to obtain limited insurance coverage on previously uninsured exposures through a modification or refinance.  Under the new program, up to a maximum of 40% of FAME loan insurance may be provided.  Potential borrowers will need to demonstrate that some form of public benefit will result from this participation, such as the retention or creation of jobs and the impact the industry has on jobs and other businesses in the region.  This program is similar to one previously offered by FAME to assist Maine lobstermen overcome challenging economic and federal regulatory conditions.   

“By adjusting our loan insurance policy to allow the refinancing of certain existing debt, FAME is demonstrating its support for Maine’s economy and the important relationships local businesses maintain with their local lenders,” stated Beth Bordowitz, FAME’s Chief Executive Officer.  “We also hope that this program will assist traditional Maine industries, such as logging, during an especially stubborn recession.”

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities.  To learn more about FAME, please visit www.famemaine.com. 

The Finance Authority of Maine (FAME) recently expanded its financial literacy program to include Money Management Counseling.  

FAME’s Money Management Counseling is an interactive online tool that teaches students the importance of managing their money, an important step toward taking control of their lives.  FAME created this session to complement its existing Additional Student Loan Debt Counseling.  Both programs are powered by Mapping Your Future.  All Maine colleges and universities are eligible to enroll and offer this service free of charge to enrolled students; several schools already are participating. 

Through the success of Additional Student Loan Debt Counseling, FAME experienced the value of counseling powered by Mapping Your Future in educating students.  The interactive format allows students to better retain and understand the information presented. 

"We are pleased to offer this valuable service to Maine students and families.  Money management skills are important to students, especially during these challenging economic times,” stated Beth Bordowitz, FAME’s Chief Executive Officer.

"We know it’s important to educate students before they make important financial decisions,” said Cathy Mueller, executive director of Mapping Your Future. “This innovative session created by FAME provides students with information in an easy-to-understand format in a method that is effective for students.”

Mapping Your Future also provides step-by-step instructions on career, college planning, and financial aid.  In addition, the site offers online student loan counseling, money management information and tools, and online customer service for schools and their students.

For more information about counseling powered by Mapping Your Future, contact CariAnne Behr at carianne@mappingyourfuture.org or (573) 634-8641.

The Finance Authority of Maine (FAME) is displaying the works of Maine artists Kay Seefeldt and Mary Beth Morrison.  Kay and Mary Beth both hail from New Sharon. 

In support of this exhibition, FAME Acting Chief Executive Officer Beth Bordowitz stated:  “Artists enrich and bring beauty to our society and communities.  FAME is proud to recognize and support Maine artists.”

Kay is a watercolor artist who paints “wet-on-wet” to create mystical, poetic landscapes and spontaneous abstract pieces.  She studies with Stan Keirstead of Farmington and has taken classes with several well-known national and international artists.  She has taught basic watercolor for several years for area adult education programs.  Kay enjoys experimenting with traditional encaustic (wax) painting and other media.   

Mary Beth paints in watercolor and acrylics and owns Braided Streams Studio in New Sharon.  She studied with Stan Keirstead of Farmington and Marni Lawson.  She currently studies with Janalee Welch in pastels.  She is active in Upcountry Artists and teaches workshops in creativity, gives occasional painting lessons, and participates in Wild Women of Art retreats.  She has won a variety of awards and honors.  Her work can be seen at www.upcountryartists.com. 

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others.  The public may view the exhibition Monday through Friday from 8:00 a.m. to 5:00 p.m.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off I-95.  The exhibit is open to the public until the beginning of July.      

To learn more about FAME art exhibits and openings, or, if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.

The Finance Authority of Maine (FAME) is displaying the works of Maine artist Lea Peterson, who hails from Georgetown.  In support of this exhibition, FAME Acting CEO Beth Bordowitz stated:  “FAME is proud to recognize and support the important contributions that Maine artists make to our communities.”

Ms. Peterson is a pastel artist whose paintings are primarily seascapes and landscapes that convey the many moods of the Maine coast.  She enjoys painting the rocky shores, tides, marshes, people, villages, wildlife and flora of Maine.  Peterson has been drawing and painting since she was eight years old, painting prolifically in oils and watercolors.  She has studied with several instructors and at the University of Maryland, where she minored in Studio Art, including oils, sculpture and printmaking. 

Following a career as an award-winning writer and communication director, Peterson recently returned to painting, this time with pastels.  She is a member of the Maine Art Gallery, American Society of Marine Artists, Pastel Painters of Maine, Kennebec Art Club, and Merrymeeting Art Association.  She also is a partner in the Old Post Office Gallery in Georgetown.  Her work has appeared in juried exhibitions at the Chocolate Church, Maine Art and Freeport Square galleries.  Peterson may be reached at (207) 371-2015 or LLPmaine@hughes.net.   

FAME hopes to bring visibility to the achievements of all Maine artists by providing opportunities to exhibit their artwork and to inspire passion about art in others.  To learn more about FAME art exhibits and openings, or if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off 95.  The exhibit is open to the public until April 1, 2009.      

The Finance Authority of Maine (FAME) was informed recently that Moody's Investors Service (Moody’s) has downgraded the ratings of FAME’s education loan revenue bonds.  The ratings are a result of market conditions and the ratings of FAME’s bond insurer, Ambac Assurance Corporation (Ambac).  The ratings downgrade is not an indication of FAME’s financial standing, however. 

According to a press release issued by Moody’s on January 30, 2009, the ratings downgrade of the education loan revenue bonds was based on the ratings downgrade of Ambac, which unconditionally and irrevocably guarantees timely payment of interest and the ultimate payment of principal on the maturity date of the bonds.

FAME decided to insure its education loan revenue bonds through Ambac in 2007 largely due to Ambac’s AAA rating at the time.

Moody’s announced recently that several other student loan bonds issued by other entities have had their bond ratings downgraded.

Beth Bordowitz, Acting CEO of FAME, stated:  “The student loan market has been broken for a full year now.  FAME has been trying to refinance its bonds but it’s nearly impossible in this market.  Due to market conditions and Ambac’s financial position, the costs of the bonds to FAME are much higher than anticipated.  We will continue to make every effort to refinance the bonds to reduce costs.”

Bordowitz emphasized that Moody’s new credit rating will have no effect on Maine students.  "FAME is proud to have remained in the student loan market when so many others have exited.  Due in large part to FAME’s presence in the market, to our knowledge no Maine student has been unable to secure a federally-guaranteed student loan.”

For more information on Moody’s action, please visit www.moodys.com.

The Board of Directors of the Finance Authority of Maine (FAME) recently approved assistance to Maine businesses affected by the recent ice storm and lobstermen grappling with federal regulations regarding fishing line replacement.  The Board also authorized an agreement between FAME and the Maine Health Access Foundation to implement a loan fund for certain primary care practices to promote the adoption of electronic medical records systems, as well as an agreement between FAME and Delta Dental Plan of Maine that provides additional funding for dental loan repayment.

The Board approved modifications to FAME’s Economic Recovery Loan and Commercial Loan Insurance Programs to assist Maine businesses negatively affected by the recent ice storm.

FAME found that substantial public benefit will result from providing assistance to Maine-based businesses located in areas of the state designated as disaster areas by the Governor that have been directly affected by last week’s ice storm.  FAME will make modifications to the usual terms of its Economic Recovery Loan Program.  Specifically, the interest rate will be lowered to the Wall Street Journal prime rate (currently 3.25%), rather than the usual rate of Wall Street Journal prime plus 2%. 

FAME’s Commercial Loan Insurance Program also was modified by the Board to allow the current OnLine Answer (OLA) Program, which provides a maximum of 60% pro-rata insurance with a maximum FAME aggregate exposure limited to $250,000, to now allow up to a maximum of 75% pro-rata insurance, with a maximum FAME exposure limited to $75,000, for all loans to eligible businesses located in the Governor-designated disaster areas that have suffered direct damage from the ice storm.  Additionally, the usual 1% initial insurance fee has been reduced to ½%.  The term of these loans will be restricted to a maximum of six months.  These policy modifications will only be in effect for eligible loan and loan insurance applications received by January 31, 2009. 

The Board further approved an extension of FAME’s lobster line replacement program, which provides loans and commercial loan insurance to Maine lobstermen to comply with federal regulations requiring the replacement of floating trap lines with sinking lines by April 2009.  The program, which was set to expire December 31, 2008, will be extended until April 30, 2009.  Banks providing loans to affected lobstermen for line replacement purposes will be able to obtain a maximum of 75% (as opposed to the usual 60%) commercial pro-rata insurance under FAME’s OLA Program.  The interest rate for economic recovery loans for this purpose will remain lowered from prime plus 2% to prime, as well.

"FAME is pleased to offer support at this critical time to Maine businesses negatively affected by the ice storm and to Maine lobstermen already struggling with adverse market conditions,” stated Kelly Matzen, Chair of the FAME Board of Directors.

In another development, FAME will partner with the Maine Health Access Foundation (MeHAF) to administer a new low-interest loan fund that will promote the adoption of electronic medical record systems in eligible primary care medical practices.      

Dr. Wendy Wolf, President and CEO of MeHAF, commented:  “MeHAF’s strategic partnership with FAME will expand the use of health information technology, which, over time, will result in better medical care, improved patient safety and reduced health care costs.  When vital patient information is readily available, physicians and nurses make better patient care decisions and avoid duplication of tests and procedures.  This is particularly important for those Mainers who do not receive regular health care services, such as those who are uninsured or lack ready access to primary care. ”

This new program supports MeHAF's mission to promote affordable and timely access to comprehensive, quality health care, and improve the health of every Maine resident.  As the state's largest health care foundation, MeHAF supports solutions to Maine's health care needs through grants and other programs, particularly targeting those who are uninsured and medically underserved.  For more information on MeHAF, please visit http://www.mehaf.org

Finally, the FAME Board authorized the agency to enter into an agreement with Delta Dental Plan of Maine to increase access to oral health care for Maine citizens while providing debt relief to eligible dental practitioners.  Delta Dental Plan of Maine will contribute up to $160,000 to be administered by FAME to enhance the goals of the existing Maine Dental Loan and Loan Repayment Programs.  The programs currently provide funding for up to three awards annually (with a maximum aggregate of twelve), with any combination of renewable $20,000 annual loans to dental students or renewable $20,000 annual loan repayment awards to dentists in eligible Maine practices.  The funding for these two programs comes from the Fund for a Healthy Maine, which was established with proceeds from the tobacco settlement.

The additional funds provided by Delta Dental Plan of Maine will enable FAME to offer an additional $40,000 per year for four years to fund two loan repayment awards annually (each in the amount of $20,000, for a total of $160,000) to eligible dental practitioners to assist in the repayment of education loans incurred in dental school.

"Delta Dental Plan of Maine looks forward to partnering with FAME to improve oral health care in Maine by helping to increase the number of dentists in our rural communities,” noted Kathleen B. Walker, APR, Director of External Affairs for Northeast Delta Dental.

Delta Dental Plan of Maine is a Maine not-for-profit corporation providing dental insurance coverage and dental claims administration statewide and whose mission includes increasing access to oral health providers in underserved areas of Maine.  For more information on Delta Dental Plan of Maine, please visit www.nedelta.com

The Board of Directors of the Finance Authority of Maine (FAME) held its annual meeting on Tuesday, November 18, 2008, at Portland’s Holiday Inn By the Bay.  The Board elected new officers and approved financial assistance for a number of Maine companies. 

Elected as officers for 2009 were:  M. Kelly Matzen of Auburn, Chair; Glenn Lamarr of Fort Kent, Vice Chair; and Susan Snowden of Scarborough, Treasurer.

The Board also approved a number of proposals to assist Maine businesses during these challenging economic times.

"We are pleased to assist these Maine companies in their efforts to succeed in a challenging economic environment and maintain good-paying jobs,” stated FAME Board Chair Kelly Matzen. 

The Board approved 90% pro rata commercial loan insurance on a $1.5 million Key Bank letter of credit for Western Mountains Charitable Foundation, also known as Maine Huts and Trails.  The bank’s letter of credit supports repayment of $1.5 million in bonds to be issued by FAME.  The proceeds will enable Maine Huts and Trails to construct two additional huts as part of its effort to develop a 180-mile backcountry trail in Western Maine with 12 huts located along the trail.

The Board further approved commercial loan insurance for an Eastern Maine construction services company.  FAME agreed to renew its commercial loan insurance on a $500,000 Machias Savings Bank line of credit to Vaughn Thibodeau & Sons, Inc./David Lakeman (VT&S). 

VT&S has been operating since 1967 as a provider of construction services, including earthwork, asphalt production and paving; as well as concrete production.  The company has administrative offices in Bangor and other facilities elsewhere in the state, including Prospect, Stockton Springs, and Hancock.  The company employs 180 workers.

Recently, FAME staff also approved an Economic Recovery Loan of $200,000 for working capital purposes for Little Harbor Window Company in Berwick.  For twenty-five years, the company has been an industry leader in building mahogany windows and doors for high-end residential construction.  The company approached FAME in an effort to remain competitive in the global market as the cost of doing business increases. The loan will help the company expand its capacity and production.

"We are grateful for FAME’s support,” stated James Eaton, the company’s president.  “FAME’s actions will help Little Harbor Window Company maintain thirty-eight good-paying, Maine jobs and continue to grow our operations.” 

The FAME Board also approved assistance for Maine’s lobster industry.  FAME will provide through its On-Line Answer (OLA) Program up to 40% commercial loan insurance to lobstermen refinancing existing debt on boats, machinery and equipment, as well as working capital lines of credit.  The insurance will be available on existing relationships if the current loan is not more than 45 days past due, with additional requirements set forth by FAME, including requirements that the company/borrower be viable and that public benefit be identified. 

"FAME is pleased to be able to play a role in supporting one of Maine’s oldest and most important industries,” noted Beth Bordowitz, FAME’s Acting CEO.  “We recognize the unprecedented challenges facing this traditional industry and the need to take immediate measures to help maintain its viability.”

The Finance Authority of Maine (FAME) celebrated its 25th Anniversary with a dinner and awards banquet Tuesday, November 18, 2008, at Portland’s Holiday Inn By the Bay.  The event, Showcase Maine, featured awards, a retrospective of FAME’s accomplishments over the years, and a keynote address by famed Maine cabinetmaker Thomas Moser.

"We enjoyed celebrating with our various business and higher education partners twenty-five years of FAME’s contributions to the State of Maine,” stated Beth Bordowitz, FAME’s Acting CEO.  "Together we’ve made business and education work for Maine, and we look forward to confronting the challenges of this tough economy and continuing to succeed together.”

In addition to showcasing various Maine business and educational organizations, FAME recognized a number of organizations and individuals with awards.  This year’s award recipients included:  Industry and Energy Associates, LLC (Business at Work for Maine Award), a Portland company that provides engineering, project management, and construction management services for the energy marketplace; Cianbro Corp. (Education at Work for Maine Award), an employee-owned company that provides construction and service solutions throughout North America, and offers a wide range of innovative educational opportunities for employees; Jack Cashman (Dirigo Award for Business), Commissioner at the Maine Public Utilities Commission and former senior economic advisor to Governor John E. Baldacci and former Commissioner of the Maine Department of Economic and Community Development; Scott Voisine (Dirigo Award for Education), Director of Student Affairs at the University of Maine at Fort Kent; and Farm Credit of Maine (Financial Institution of the Year Award), a member-owned financial institution that provides commercial credit to family businesses in Maine’s farming, forestry, and fishing industries, as well as the state’s rural communities.

Thomas Moser, President and Founder of Thos. Moser Cabinetmakers, delivered an upbeat keynote address on Maine’s economic potential entitled “The Piscataqua River Bridge:  Gateway to the Future.”  Moser, a former FAME customer, launched his company with his wife, Mary, in April 1972 via an advertisement in Down East magazine.  He recounted his company’s remarkable journey from a two-person operation to a world-renown Maine-based business that employs more than 120 people, and has residential, professional and academic customers worldwide.

Mila Tappan, Outreach Representative at the Finance Authority of Maine (FAME), has been awarded the Candance Johnson Vinette Award for Distinguished Service by the Maine Association of Student Financial Aid Administrators (MASFAA) at the organization’s recent MASFAA annual meeting in Rockport.

The award is given periodically to an individual who has made special contributions of energy, spirit and dedication to increase access to higher education for the citizens of Maine, and who has, by example, inspired others to greater professionalism in the financial aid community.  The award is named for the late Candance Johnson Vinette (June 22, 1952 - January 7, 1990), who was an Associate Director of Financial Aid at the University of Maine at Farmington.  Vinette was a beloved colleague and friend to many and a person who contributed tremendously to the professional and personal lives of those around her.

Tappan recently joined FAME, where she works as an Outreach Representative.  Her areas of responsibility include providing financial aid information and outreach to middle schools, high schools, adult learners and post secondary institutions, as well as providing outreach and support for the Harold Alfond College Challenge.

"We are proud that Mila’s excellent reputation in Maine’s financial aid community has been recognized by MASFAA and congratulate her on this impressive honor,” stated FAME Acting CEO Beth Bordowitz.  “Maine students and FAME are fortunate to have Mila working for us in the fields of outreach and education.  We are particularly pleased that, for the second year in a row, a FAME employee has been honored with this award; Mary Dyer having been last year’s recipient,” she added.

Prior to joining FAME, Tappan worked as an Associate Director of Financial Aid at the University of Maine, where she was employed for sixteen years.  She was an active member of MASFAA and served as MASFAA President last year.  She also is a long-time member of the Eastern Association of Student Financial Aid Administrators (EASFAA), and is currently serving as chair of the EASFAA Leadership Development Committee.  She has served as a NASFAA trainer and has presented numerous workshops and sessions around the state over the years.  

Tappan graduated from the University of Maine with a degree in Public Management.  After concluding graduate work and a teaching assistantship in 1990, she worked for the Maine State Legislature as a Research Assistant in the areas of education, transportation and labor relations.  She currently resides in Bangor with her husband and two children.

The Finance Authority of Maine (FAME) will celebrate its 25th Anniversary with a dinner and awards banquet on Tuesday, November 18, 2008, from 4:30 p.m. to 7:45 p.m. at Portland’s Holiday Inn By the Bay.  The event, “Showcase Maine,” will feature awards, a retrospective of FAME’s accomplishments over the years, and a keynote speech by famed Maine cabinetmaker Thomas Moser.

Showcase Maine will celebrate the many successful partnerships FAME has forged over twenty-five years with Maine’s business, higher education, and governmental communities.  The evening will feature a reception, including booth displays by various business and educational organizations that partner with FAME; a dinner and awards presentation; a retrospective of FAME’s twenty-five years; and a keynote speech by Thomas Moser, Maine’s premier cabinetmaker and a former FAME customer.

"We look forward to celebrating 25 years of FAME’s contributions to the State of Maine,” stated Beth Bordowitz, FAME’s Acting CEO.  “Crucial to FAME’s success in providing innovative financial solutions to Maine’s business and higher education communities are the diverse partnerships we’ve forged over the years.  Together we’ve made business and education work for Maine’s economy, and Showcase Maine is a great opportunity to celebrate these successes.”

In addition to the reception showcasing various Maine business and educational organizations, the evening will include the presentation of a number of awards by FAME.  This year’s recipients include:  Industry and Energy Associates, LLC (Business at Work for Maine Award), a Portland company that provides engineering, project management, and construction management services for the energy marketplace; Cianbro Corp. (Education at Work for Maine Award), an employee-owned company that provides construction and service solutions throughout North America, and offers a wide range of innovative educational opportunities for employees; Jack Cashman (Dirigo Award for Business), Commissioner at the Maine Public Utilities Commission and former senior economic advisor to Governor John E. Baldacci and former Commissioner of the Maine Department of Economic and Community Development; Scott Voisine (Dirigo Award for Education), Director of Student Affairs at the University of Maine at Fort Kent; and Farm Credit of Maine (Financial Institution of the Year Award), a member-owned financial institution that provides commercial credit to family businesses in Maine’s farming, forestry, and fishing industries, as well as the state’s rural communities.

Thomas Moser, President and Founder of Thos. Moser Cabinetmakers, will deliver an upbeat keynote address on Maine’s economic potential entitled “The Piscataqua River Bridge:  Gateway to the Future.”  Moser, a former FAME customer, launched his company with his wife, Mary, in April 1972 via an advertisement in Down East magazine.  What began as an intense exploration of craftsmanship has evolved into a world-renown Maine-based business that employs more than 120 people, and has residential, professional and academic customers worldwide.

Those interested in attending Showcase Maine may register online at www.famemaine.com or contact FAME at (800) 228-3734.

The Finance Authority of Maine (FAME), the Maine Association of Community Banks, and the Maine Bankers Association jointly announced today that Maine’s financial institutions continue to assist businesses with their financing needs.  The banks are well-capitalized and available to offer financial assistance to Maine businesses, despite national economic woes.  FAME provides loan insurance to banks to help them assist borrowers who otherwise might be unable to obtain financing.

"FAME and Maine’s banking industry have the capacity and willingness to make commercial loans, despite these challenging economic times,” stated Beth Bordowitz, Acting CEO of FAME.  "We continue to partner with Maine lending institutions, regional economic development agencies, and businesses in order to strengthen the economy and preserve and grow Maine jobs.” 

At its September monthly meeting in Fort Kent, the FAME Board approved $500,000 in new economic recovery loan funding for Prime Tanning Co., Inc., in Hartland, helping to preserve 258 Maine jobs.  The Board also voted to provide commercial loan insurance on three Bangor Savings Bank loans totaling $2.1 million for the financing of Apothecary by Design, LLC, a Portland-based start-up company that expects to employ 19 workers. 

Since July 1, 2008, FAME has implemented commercial loan insurance for 41 loans, assisting Maine banks in loaning approximately $11 million to Maine businesses to create and retain 840 Maine jobs.

"Maine banks are adequately capitalized and ready to serve our customers,” emphasized Christopher W. Pinkham, President of the Maine Association of Community Banks.  “Unlike some lending institutions in other states, Maine banks are ready, willing and able to meet the needs of our customers.”

Joseph J. Pietroski, Jr., President and Treasurer of the Maine Bankers Association, stated:  "Despite the national upheaval in financial markets, Maine banks are able to lend money at this time due to our prudent lending and reserve policies.  Maine citizens should continue to have confidence in their lending institutions and contact their local banks for their business and personal needs.”

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities.  To learn more about FAME, please visit www.famemaine.com or call (800) 228-3734.

The Maine Association of Community Banks provides community-oriented banks with a forum to exchange valuable industry information; gain maximum representation in state and federal legislative and regulatory matters; receive education, training and staff certification; and wield greater collective purchasing power.  For more information, please visit www.mecb.com or call (207) 791-8400.

The Maine Bankers Association is a financial services industry trade organization representing the interests of Maine's banking industry, trust companies, and financial service providers.  Maine Bankers Association exists to advocate for the industry, to facilitate communication amongst its membership, and to provide educational, training and regulatory services.  For more information, please visit www.mainebankers.com or call (207) 622-6131.

The Finance Authority of Maine (FAME) is displaying the works of two Maine artists, Stan and Barbara Keirstead, who hail from Farmington.  In support of this exhibition, FAME Acting CEO Beth Bordowitz stated:  “We are proud to support and recognize Maine artists and to bring public attention to the arts and artists who enrich our communities.”

After returning from active military duty in France, Stan Keirstead became a self-taught artist in oils.  Later he changed to watercolors and found it to be his preferred medium.  Stan served as principal of Mt. Blue High School for many years, where he taught watercolor classes in the school’s adult education program.  After retiring in 1983, Stan taught watercolor painting at the University of Maine at Farmington.  He subsequently opened his own art gallery and studio for teaching.

Barbara Keirstead also changed her medium of preference from oils to watercolors.  Barbara’s other palette is flowers, the delicate beauty of which fills her many home gardens.  She is an avid reader and works part-time at a dental office.

The Keirsteads frequently exhibit together in Maine, and painting, teaching and framing has been a major part of their lives for the past twenty years.  They have studied under artists Nita Engle, Carlton Plummer, and Carol Sebold.  Their paintings portray the beauty of Maine.  Their Farmington gallery is open by appointment.  They may be contacted at 183 Sewall Drive, Farmington ME  04938 or at (207) 778-4764.

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others.  The public may view the Keirstead exhibition Monday through Friday from 8:00 a.m. to 5:00 p.m.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off I-95.  The exhibit is open to the public through December.

At an outdoor event involving Maine truckers, three state agencies, and various legislators, Governor John E. Baldacci yesterday announced the availability of additional, low-cost energy conservation funds for Maine truckers and other businesses. 

Governor Baldacci spoke outside the State House alongside Larry Sidelinger, owner of Yankee Pride Trucking of Nobleboro; Diana and Lonnie Adams of L&D Trucking in Caribou; representatives of the Finance Authority of Maine (FAME); the Maine Public Utilities Commission (PUC); and the Maine Department of Environmental Protection (DEP); and legislators to announce the availability of additional energy conservation funds to help Maine businesses adapt to current economic challenges, especially increased fuel prices. 

Announcing the coordinated effort by three state agencies, Governor Baldacci stated:  “Energy costs are hurting the entire economy.  Businesses of every size are struggling to account for oil and gas prices that seem to set new records every day.  We need our Maine truckers to stay on the road, and this initiative can help keep them rolling.  This is a terrific example of state agencies working together to get something done for Mainers.”

In view of rapidly increasing energy costs to Maine businesses such as truckers, FAME has enhanced the Energy Conservation Loan Program, which is co-administered by the PUC and FAME, and FAME’s Economic Recovery Loan Program.  Among other things, the funds will allow more truckers to purchase energy-saving pollution control equipment such as auxiliary power units (APUs), as well as bunk heaters.  APUs power the electrical needs of a vehicle that are not related to propulsion, such as climate control for sleeping compartments and keeping engine block heaters powered up.  Bunk heaters are units that provide heat to truckers’ sleeping compartments.  Both APUs and bunk heaters are diesel-powered, but use a fraction of the fuel consumed by an idling engine.  Their use will reduce truck idling and can save a company over $12,000 per year in diesel fuel costs per truck, while also reducing fine particulate matter and greenhouse gas emissions. 

FAME has set aside $1,000,000 for energy conservation loans to provide additional funding for businesses to improve energy efficiency.  Cooperatively administered by FAME and the PUC, the Energy Conservation Loan Program had a maximum loan amount of $35,000.  The PUC will continue to fund all loans that meet the program’s current underwriting standards (projects under $40,000, applicants with fewer than 50 employees or $5,000,000 in sales).  FAME and the PUC have modified program rules to fund larger projects that otherwise could not be pursued under the former loan limit.  With the changes, FAME will fund 90% of a total project, up to a maximum of $250,000, at a fixed interest rate of 3% for those projects that are in excess of $40,000.  Loan terms cannot exceed five years, with a maximum fifteen-year amortization period.

Furthermore, the interest rate on all new Economic Recovery Loan Program loans has been reduced from Prime + 2% to Prime, which currently is set at 5%.  The loans in this program provide subordinate (gap) financing to assist businesses in their efforts to remain viable and/or improve productivity. 

The Maine DEP also is planning to make $100,000 available for truckers to install APUs and “bunk heaters” in order to reduce truck idling.  These funds also will be administered by the PUC.

"During these challenging economic times, especially with soaring energy costs, FAME  believes it’s important to be flexible and responsive with its programs so that Maine businesses may benefit immediately,” stated FAME Acting CEO Beth Bordowitz.

"Over 11 years this program has provided more than $2.7 million to small Maine businesses to make the investments that save energy and money,” said PUC Chairman Sharon M. Reishus. “This expansion of the program, at a time when fuel costs are rising so rapidly, is incredibly timely.  It’s been a pleasure working with the Governor, FAME and the DEP to make it happen.”

"Partnering with the PUC and FAME provides the opportunity to secure additional federal funding to reduce diesel engine idling.  While providing financial relief to truckers by reducing fuel use, this effort fits perfectly with the anti-idling law that was passed in the last legislative session by contributing to healthy air quality,” commented DEP Commissioner David Littell.

FAME has collaborated in recent months with the Governor’s Office of Energy Independence, the PUC, the Department of Environmental Protection, the Department of Economic and Community Development, legislators, and others on matters related to energy conservation.  With these stakeholders, FAME has been exploring alternative methods of financing for businesses, including truckers, to minimize the use of fossil fuel and utilize non-fossil fuel based technologies to reduce costs and increase productivity. 

For more information, including links to a fact sheet and program application, please visit www.famemaine.com; www.maine.gov/mpuc; or www.maine.gov/dep/air.

(Click here for Fact Sheet).

The Board of Directors of the Finance Authority of Maine (FAME) has approved two programs to aid Maine businesses in certain designated disaster areas that have been negatively affected by recent excessive rain, snow melt, and flooding.  Effective immediately, FAME will provide lower cost financing to affected businesses through its direct loan and commercial loan insurance programs. 

Governor John E. Baldacci announced the FAME assistance yesterday while touring affected areas in Aroostook County and New Brunswick with New Brunswick Premier Shawn Graham.

"Our goal is to help businesses and families get back on their feet and to get quickly to work on recovery,” Governor Baldacci said.

FAME Board Chair Joyce Maker stated:  “We are pleased to assist Maine businesses, primarily those located in Aroostook County, during this difficult time as they strive to recover from the recent, unfortunate storm and flooding.”  

FAME will offer both direct loans and loan insurance to eligible businesses adversely affected by the recent storm.  To be eligible for assistance, a business must, among other things, be Maine-based and located within an area covered by the Governor’s State of Emergency Declaration dated April 29, 2008, or in any additional areas subsequently designated by the Federal Emergency Management Agency (FEMA).

First, FAME will offer direct loans through its Economic Recovery Loan Program.  FAME is reducing its usual interest rate from Prime (currently 5%) to 2% below Prime on one-year loans of $75,000 or less (no principal repayment in the first year). 

Second, FAME will make available enhanced Commercial Loan Insurance both in the traditional manner and also via its innovative OnLine Answer (OLA) Program.  "OLA is a faster, easier, and lower cost way for lenders to apply for loan insurance,” stated FAME Acting CEO Beth Bordowitz.  “A lender simply completes an application on FAME’s Web site and receives a decision and all required FAME paperwork within minutes,” Bordowitz noted. 

Typically, the OLA Program provides lenders with up to 60% pro-rata loan insurance, up to a maximum FAME exposure of $250,000.  Through June 30, 2008, however, FAME will increase the insured percentage to 75% on loans of $100,000 or less to affected businesses.  Also, the normal 1% initial insurance fee will be reduced to ½%, and the terms of these loans will be restricted to a maximum of six months.  A financial institution must sign up with FAME in order to participate in the OLA Program.

"Through these two flexible options, FAME is doing its part to assist Maine businesses as they cope with the challenges wrought by the recent storm,” stated Bordowitz.

Each of the FAME flood disaster assistance programs will require the following:

1.   The Borrower must have a place of business located in a Maine community within the state or federally-designated disaster area;

• The Borrower must have been directly affected by rising water associated with the April 2008 rainstorms and have sustained losses due to the rising water;
• The Borrower must provide a pledge of any applicable insurance proceeds and a binding commitment to:  (a) diligently pursue applicable insurance claims; (b) diligently pursue SBA disaster loan funds for any losses not covered by insurance; and (c) immediately upon receipt thereof, use any and all proceeds of applicable insurance and SBA disaster loans toward payoff of the FAME direct or insured loan.

Finally, FAME is partnering with Northern Maine Development Commission (NMDC) to facilitate the application and origination of loans.  The two agencies will work together to provide enhanced efficiencies, flexibility, and swift response time.

"We are happy to be partnering with FAME to ensure that Northern Maine businesses obtain the swift assistance they need to recover from this storm,” stated Duane Walton, Director of Business Finance at NMDC.

The Board of Directors of the Finance Authority of Maine (FAME) yesterday approved loans and loan insurance to assist a variety of Maine businesses.  FAME’s actions will help create and preserve a total of 277 Maine jobs.  The FAME Board held its monthly meeting in Fort Kent after a two-day tour of Aroostook County businesses. 

The two businesses assisted by the Board’s actions are Prime Tanning Co., Inc. of Hartland, a leather producer that recently ceased operations at its Berwick facility and is in the process of transitioning production to its finishing operations in Hartland; and Apothecary by Design, LLC, a Portland-based start-up company that will operate as a specialized retail pharmacy.

"During these challenging economic times, FAME stands shoulder-to-shoulder with Maine lending institutions and businesses in order to strengthen the economy and grow and preserve Maine jobs,” stated FAME Board Chair Joyce Maker.

Prior to the Board meeting, the FAME Board and staff, as well as area legislators and business leaders, toured various Aroostook County businesses to learn more about the local economy.  Activities included:   tours of the Louisiana Pacific Laminated Strand Lumber Mill in New Limerick and McCain Frozen Foods in Easton; a panel discussion on area economic issues held at the Long Lake Sporting Club in Sinclair; and the FAME Board meeting and presentation by representatives of the Maine Winter Sports Center at the 10th Mountain Lodge in Fort Kent.

The Board approved $500,000 in new Economic Recovery Loan funding for Prime Tanning Co., Inc.  The company produces side-leather for many of the best-known leather brands in the world.  The loan will allow the company to reduce its payables and access much-needed liquidity as it consolidates operations and preserves Maine jobs.  The money approved is in addition to $500,000 in outstanding or already approved FAME loans, and brings funding for the company to the maximum allowed under the program.  In August, the company announced it was closing its Berwick facility and redirecting 75 of 150 jobs to Hartland.  FAME’s actions will help to preserve 258 Maine jobs. 

Bob Moore, Chief Executive Officer of Prime Tanning, stated:  “We are grateful for FAME’s assistance during this period of transition.  Our goal is to preserve as many Maine jobs as possible while competing in a challenging global economy.”

The Board also voted to provide 90% pro rata Commercial Loan Insurance on three Bangor Savings Bank loans totaling $2.1 million for the financing of Apothecary by Design, LLC.  The nascent company, which expects to employ 19 workers, will offer specialized pharmacy services such as pharmaceutical compounding, nutritional health and well being, and specialty disease management   The loans and loan insurance will allow Apothecary by Design to make leasehold improvements at its Portland location and also support its working capital needs.

"FAME’s actions in helping to preserve and grow 277 Maine jobs is consistent with its mission of making business and education work for Maine,” stated Beth Bordowitz, Acting CEO of FAME.  "We wish these businesses success in these challenging economic times.”

On August 22, 2008, the U.S. Department of Education officially notified FAME that it has been awarded funds through the College Access Challenge Grant.  The grant will enable FAME to expand its outreach efforts to help students achieve their postsecondary goals.  The funds--$330,000 per year over two years--will be used to provide information and outreach to Maine students and families regarding financial aid, financial literacy, and debt management.

The grant was established as part of the College Cost Reduction and Access Act, which President Bush signed into law on September 27, 2007.  Available monies are to be used by states on efforts to increase college access and success among underserved student populations.

FAME’s plans for the grant money include:  providing information about the benefits of a college education, college opportunities, and college and career planning; informing students and families about financial aid options for college, financial literacy, and debt management; performing outreach activities for students at risk of not continuing their education; assisting families in completing the Free Application for Federal Student Aid (FAFSA form); and offering professional development for guidance counselors at middle and high schools and financial aid administrators and college admissions counselors at colleges.

FAME already has expanded its current outreach efforts by recently hiring two veteran financial aid professionals who will not only work with high schools but also will coordinate with middle and elementary schools and adult education centers to reach students and parents. The services provided will be available to all Maine citizens, regardless of income.

The Board of Directors of the Alfond Scholarship Foundation is celebrating the first six months of the Harold Alfond College Challenge, including the funding of the program’s first grants. The program, the nation’s first statewide college grant program, is currently limited to Maine resident babies born at MaineGeneral Medical Center’s Augusta and Waterville facilities. It will be available statewide for babies born after January 1, 2009.

“We are very encouraged by the high level of interest in and participation by Central Maine families in the Harold Alfond College Challenge,” stated Alfond Scholarship Foundation Board Chair Larry Pugh. Maine families are excited about this gift -- over 200 families expecting to deliver a baby at MaineGeneral Medical Center in 2008 have submitted statements of interest in opening a college savings account for their new baby and receiving the $500 grant. The first grants have been funded, and public enthusiasm for the program is quite exciting.”

Governor John E. Baldacci, who helped launch the Harold Alfond College Challenge in December 2007, stated: “My late friend, Harold Alfond, had a unique ability to challenge others to help create partnerships for opportunity through his generous gifts to Maine. The success of the Harold Alfond College Challenge is another of his living legacies to Maine people. I know he would join me in encouraging as many parents and families as possible to enroll in this program and begin saving now for college.”

Launched in January 2008 by a generous gift from the late philanthropist Harold Alfond, the unprecedented Harold Alfond College Challenge combines the resources of the Finance Authority of Maine (FAME) and MaineGeneral Medical Centers to provide $500 scholarships to be invested in NextGen College Investing Plan® accounts for every Maine resident baby. The first phase of the program’s implementation is occurring at MaineGeneral Health facilities in Augusta and Waterville, with a statewide launch of the program planned for January 2009. There were 14,152 births in Maine in 2006.

During this model year, the Alfond Scholarship Foundation is working in close partnership with FAME and MaineGeneral Health, among others, to increase awareness of and participation in the program in the Waterville and Augusta areas, provide training to medical professionals, and hold public seminars to encourage college savings and aspirations.

MaineGeneral Health President and Chief Executive Officer Scott Bullock stated: “MaineGeneral is honored to have been entrusted by the Alfond Scholarship Foundation to help model and launch this important college savings program. Harold Alfond recognized the integral relationship between education and personal health, and we are doing our part to educate Central Maine families about this unique and important opportunity.”

“As an active partner in the Harold Alfond College Challenge, FAME is pleased to participate in the roll out of the program and looks forward to the statewide launch of this extraordinary legacy in 2009,” stated FAME’s Acting CEO Beth Bordowitz. “Harold Alfond’s generous gift will help to change the culture in Maine and inspire more Maine families to begin saving for college early.”

During the 2008 model phase of the program, all babies born at MaineGeneral who are Maine residents are eligible to receive the $500 grant. A NextGen account must be opened naming the child as the account beneficiary before the baby’s first birthday. Anyone can open the NextGen account—parents, grandparents, even friends--but only one $500 grant will be awarded per baby. The grant may be used as the initial contribution to open the account and no other initial or subsequent contribution is required, although it was the late Harold Alfond’s hope that parents and extended family members would continue contributing to their child’s NextGen account.

The Alfond Scholarship Foundation is a non-profit corporation established to support the Harold Alfond College Challenge. The Foundation is a partnership of organizations and individuals who embrace the late Harold Alfond’s philosophy, and includes representatives from the Maine Compact for Higher Education, the Finance Authority of Maine, the University of Maine System, the Maine Community College System, the Maine Community Foundation, the Mitchell Institute, MaineGeneral Health, and the Maine Hospital Association.

Maine General is the leading health care provider in the Kennebec Valley and the state’s third-largest health care system. It is a comprehensive non-profit organization that also includes physician practices, nursing homes, rehabilitation, home healthcare and hospice services.

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities. FAME administers the NextGen College Investing Plan (NextGen), Maine’s Section 529 tax-advantaged college savings program. To learn more about the Harold Alfond College Challenge and NextGen, or to obtain an application, please contact FAME at (800) 228-3734 or visit www.famemaine.com .

Before you invest in the NextGen plan, request a NextGen College Investing Plan Program Description from your Maine Distribution Agent or call toll free (877) 4-NEXTGEN (463-9843) and read it carefully. The Program Description contains more complete information, including investment objectives, charges, expenses and risks of investing in the NextGen plan which you should consider carefully before investing.

The Finance Authority of Maine (FAME) is displaying the works of two Maine artists, Donna Asmussen and Joan Proudman.  In support of this exhibition, FAME Acting CEO Beth Bordowitz stated:  “We are proud to support and recognize Maine artists and to bring public attention to the arts and artists who enrich our society and strengthen our communities.” 

A painter and printmaker, Donna Asmussen works mainly from her home studio in Smithfield.  Before becoming involved in the arts, she worked in public education as a teacher, school administrator, and consultant for many years in Rhode Island and Maine.  She studies with Stan Keirstead of Farmington and Scott Reed of Colby College.  Asmussen’s works currently on display include original watercolors, monoprints, and limited edition prints inspired by the beauty of nature and her love of poetry and myth.  Asmussen’s work can also be viewed on her website:  www.artjourneyer.com. 

A multimedia photomontage and collage artist, Joan Proudman has been exhibiting her prints since 2002.  She lives in Freedom.  She studied drawing, painting and printmaking at Franconia College in New Hampshire and Evergreen State College in Washington.  She received a Bachelor’s Degree in Fine Arts from the University of Southern Maine.  Most recently, Proudman’s work has appeared as book and magazine cover designs for local publications.  A former dancer with the Boston Ballet Company, Portland Ballet, and Ram Island Dance Company of Portland, Proudman brings a theatrical touch to the whimsical characters she creates.  Her work can be viewed on her website:  www.joanproudman.com.   

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others.  The public may view the exhibition Monday through Friday from 8:00 a.m. to 5:00 p.m.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off I-95.  The exhibit is open to the public through the middle of September, with an open house planned on July 17, 2008 from 5:00 p.m. to 7:00 p.m.

The Board of Directors of the Finance Authority of Maine (FAME) yesterday approved a $500,000 loan from its Economic Recovery Loan Program to SB Acquisition, LLC, dba:  Saunders Brothers (“Saunders Brothers”), for building and energy improvements at its Locke Mills manufacturing facility.  The company, which has an office in Westbrook and another facility in Fryeburg, employs 102 people.   

Saunders Brothers is a wood products firm that began operations in the early 1900s.  The company is a major supplier of wood components, including wooden dowels; pins; turnings; handles; furniture components; and related products.

The company plans to use the money to modernize and improve its Locke Mills facility.  Anticipated projects include installation of a new roof for the main building; the purchase of new equipment; and various energy saving enhancements.

"We are pleased to assist Saunders Brothers in this investment in its future through significant facility and energy enhancements to its Locke Mills facility,” stated FAME’s Acting CEO Beth Bordowitz. 

Saunders Brothers was acquired in late 2007 by SB Acquisition, LLC, whose CEO is Keith Fox, an experienced entrepreneur.  Since then, company ownership has implemented several measures to improve the business, including implementing new management systems; consolidating operations; renovating facilities; and instituting a “lean processing” initiative.

"Saunders Brothers appreciates FAME’s assistance as we strive to modernize our business in the face of increased energy costs and a challenging economy,” stated company CEO Keith Fox.

In approving the loan, the FAME Board determined that the retention of 102 quality jobs in Locke Mills and Fryeburg, most with generous health and retirement benefits, will significantly benefit that area of the state.

FAME Board Chair Joyce Maker stated:  “FAME recognizes the company’s need for capital in order to make necessary improvements during this time of high energy costs and challenging global economic forces.”

The U.S. Department of Education recently announced the Federal Fiscal Year 2008 guarantor default recovery rates in the Federal Family Education Loan Program (FFELP) through April 30, 2008.  The Finance Authority of Maine (FAME) earned the highest recovery rates in the nation for the period of October 1, 2007 through April 30, 2008. 

According to data recently released by the Department, FAME’s guaranty agency recovery rates were 30.02% through April 2008.  FAME led all other guaranty agencies in the nation for this period; by comparison, the national average for agencies was19.14% for this same time-frame.

"We are proud of our high recovery rates, which are well above the national averages.  They demonstrate our commitment to helping Maine borrowers get back on track with their loan payments and improve their credit history” stated FAME’s Acting CEO Beth Bordowitz.  “We are pleased that our ‘GOAL$’ program, which offers comprehensive default prevention and outreach, is working so well.”   

In January, FAME announced the creation of a comprehensive default prevention and outreach program, “GOAL$,” which stands for “Great Opportunities to Achieve Life Success.”

Through “GOAL$,” FAME renewed its commitment to college access, financial literacy, and default prevention by implementing a series of new initiatives such as:  the creation of two new positions, Outreach & Default Prevention Manager and Default Prevention Specialist; expanded programs to assist high-risk borrowers during their grace periods; on-line alternative loan counseling and money management tutorials for students; new financial literacy tools, publications and training; expanded college access, outreach & default prevention content on FAME’s website, www.famemaine.com; and increased college access, outreach & training services to schools throughout Maine.

As part of FAME’s recovery efforts, borrowers who are in default on their Federal Family Education Loans can restore their loans to good standing and, as a result, avoid many of the negative aspects of default such as damaged credit and loss of Title IV aid eligibility.  Benefits of rehabilitation include access to new loans, reinstatement of interest subsidies (where applicable), and access to helpful repayment options like deferment and forbearance.

"FAME believes that all defaulted borrowers deserve a second chance and, through a combination of efforts, including active student outreach and education, FAME provides them with that opportunity,” commented Mary Dyer, FAME’s Default Prevention Specialist.  “Recoveries through loan rehabilitation are at an all-time high nationwide, which is a good trend.”

Nearly 46% of FAME’s total recoveries were resolved through loan rehabilitation, removing the default status from the credit history of such borrowers.

The Board of Directors of the Finance Authority of Maine (FAME) today approved loans and loan insurance to assist a variety of Maine businesses.  The businesses include Architectural Glazing Technologies of Waterboro, a manufacturer of aluminum-framed skylights and curtain wall systems; Morin Brick Company of Auburn, a clay brick manufacturer; Curran Company, Inc. (formerly known as Curran Bean Sprout Co.) of Saco, a vegetable processing company; and Maine Woods Company, LLC, of Portage, which operates a hardwood saw mill and dry kilns.  A total of 275 Maine jobs will be created or preserved as a result of FAME’s actions.

"During these challenging economic times, FAME is pleased to partner with Maine lending institutions and businesses in order to strengthen the economy and grow and preserve Maine jobs,” stated FAME Board Chair Joyce Maker.

The Board approved a $600,000 Economic Recovery Loan for Architectural Glazing Technologies.  The loan approved will allow the company to make the best use of its expanded ability to provide glass curtain walls for large new construction and retrofit projects, using its state-of-the-art manufacturing process.   

The Board also agreed to provide Commercial Loan Insurance totaling $3,302,500 for Maine Bank & Trust for the financing of Morin Brick Company.  The company uses clay mined from its own land to make bricks used in commercial and residential development.  The loan will allow Morin Brick to put to use recently installed equipment upgrades to modernize a one- hundred-year-old manufacturing process.

Curran Company, Inc. was approved for both a $218,000 Economic Recovery Loan and Commercial Loan Insurance on a loan from Androscoggin Savings Bank.  The company prepares and re-processes vegetables sourced from across the United States.  This financing will enable the company to maintain its 58 employees engaged in processing vegetables for well-known companies such as Green Giant.

Finally, the Board voted to approve a $500,000 Economic Recovery Loan for Maine Woods Company.  The company is heavily dependent on the construction industry, which, like many other industries, is facing global economic challenges.  This loan will provide a bridge to recovery for the company.  “This assistance will allow our company to prevail over the current national slow-down in the construction industry,” stated Seven Islands Land Company President John McNulty.  “We are grateful to FAME for its assistance.”  Seven Islands Land Company, which manages over 850,000 acres of land in Maine, owns part of Maine Woods Company.

"FAME’s actions today in helping to preserve and grow approximately 275 Maine jobs is consistent with its mission of making business and education work for Maine,” stated Beth Bordowitz, Acting CEO of FAME.  “We wish these businesses continued success in these challenging economic times.”

In an effort to enhance the online experience of students, schools and counselors in Maine, FAME has redesigned and expanded the education portion of our web site. Most notable in this web site redesign is the creation of a new section titled “For Student Loan Borrowers.” This section was developed to provide comprehensive loan repayment information to borrowers, including a variety of calculators and information on how to avoid default. Financial Aid Administrators, Guidance Counselors and Advisors will notice that we have expanded the site to include information regarding our GOAL$ program.

The Board of Directors of the Finance Authority of Maine (FAME) recently approved interest rate reductions to help Maine businesses prevail over current economic challenges, especially increased energy costs.  One of the changes results from an enhanced partnership between the Maine Public Utilities Commission (PUC) and FAME to make energy conservation funds more available to Maine businesses.

Governor John E. Baldacci announced the changes at today’s Governor’s Energy Efficiency Summit, “Strengthening Business Through Energy Efficiency,” held at the Augusta Civic Center.  The summit, involving more than 550 Maine business and environmental leaders, explored the potential for aggressive energy efficiency investments to improve Maine’s economy.  Representatives from the Governor’s office, FAME, the PUC, the U.S. Environmental Protection Agency, and others participated in the day-long event.

In view of the current economic downturn both nationally and in Maine, including increased energy costs to Maine businesses, the FAME Board found on February 21, 2008 that substantial public benefit will result from the coordination of the Energy Conservation Loan Program, which is co-administered by the PUC and FAME, and dedicated funds set aside for energy conservation projects within the Economic Recovery Loan Program, which is administered by FAME.

Effective February 21, 2008, $1,000,000 of funds will be made available for energy conservation loans to provide additional funding for businesses to improve energy efficiency.  The Energy Conservation Loan Program has a maximum loan amount of $35,000.  The PUC will continue to fund all loans that meet the program’s current underwriting standards, which include applicants with fewer than 50 employees and less than $5,000,000 in sales.

The Energy Conservation Loan Program has made over $1 million in loans since its creation in 1997.  One success story involves L&D Trucking of Aroostook County.  A loan by this program helped the company purchase an auxiliary power unit for a truck.  The unit saves the company enough in energy costs to allow it to make regular loan payments and to re-invest in the business. 

FAME and the PUC recognize, however, that additional funds may be needed by businesses to fund larger projects that otherwise could not be pursued under the former loan limit.  With the changes, FAME will fund 90% of a total project, up to a maximum of $250,000, at a fixed interest rate of 3% for those projects that are in need of loans in excess of $35,000.  Loan terms cannot exceed five years, with a maximum fifteen-year amortization period.

Additionally, effective February 21, 2008 through June 30, 2008, the interest rate on all new Economic Recovery Loan Program loans will be reduced from Prime + 2% to Prime, which currently is set at 5.25%.  The loans in this program provide subordinate (gap) financing to assist businesses in their efforts to remain viable and/or improve productivity. 

FAME’s Economic Recovery Loan Program has made over $41.7 million in loans since being created by the Legislature in 1992.  An example of the program’s success is WahlcoMetroflex, Inc. of Lewiston.  The company, a world-leading designer and manufacturer, leveraged the program to remain Maine-based and to expand sales and increase its highly skilled workforce.

"During these challenging economic times, especially with energy costs skyrocketing, FAME  believes it’s important to modify these two programs so that Maine businesses and people may benefit immediately,” stated FAME Board Chair Joyce Maker.

"This program has already loaned almost a million dollars to Maine businesses for energy efficiency projects,” said Kurt Adams, Chairman of the Maine Public Utilities Commission. “Efficiency investment saves money and helps create jobs.  FAME is really stepping up to the plate with this significant increase in the maximum loan.”

FAME has been collaborating in recent months with the PUC, the Governor’s Office of Energy Independence, the Department of Economic and Community Development, legislators, and others on matters related to energy conservation.  With these stakeholders, FAME has been exploring alternative methods of financing for businesses, fishermen, loggers, and others to utilize non fossil-fuel based technologies to reduce costs and increase productivity. 

"FAME stands shoulder-to-shoulder with Maine businesses and people as they weather difficult economic hardships and an especially stormy Maine winter.  Improving these two programs hopefully will assist Mainers to prosper in the face of adversity,” stated Beth Bordowitz, Acting CEO of FAME.

The Finance Authority of Maine (FAME) currently is displaying the work of Maine artist Irene Rothe.  Rothe resides in Auburn and has been painting in watercolor since 1973.  FAME Acting CEO Beth Bordowitz stated, “We are proud to support and recognize Maine artists like Irene Rothe and to bring public attention to the arts and artists who enrich our society and strengthen our communities.” 

Rothe has exhibited in numerous Maine art shows and has received many purchase awards, including 1st Place in watercolors at the Winthrop Sidewalk Art Show and at the Waterville Intown Arts Festival.  She began her education in watercolor in 1973 with Phyllis Woodsome of Wayne, Maine, and her work is influenced by Charles Reid.  Irene exclusively paints Maine landscapes and has a great appreciation for the beauty of the ocean and the mountains.   

FAME hopes to bring visibility to the achievements of all Maine artists by providing a forum to exhibit their artwork and to inspire passion about art in others.  The public may view this current exhibition Monday through Friday from 8:00 a.m. to 5:00 p.m. at the FAME office.  The FAME building is located at 5 Community Drive, Augusta, off Exit 112 of I-95.  To learn more about FAME art exhibits or if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734 or visit its website at www.famemaine.com

The Board of Directors of the Finance Authority of Maine (FAME) recently approved a program of commercial loans and loan insurance to assist Maine lobstermen comply with new federal regulations requiring the replacement of floating trap lines. 

The FAME Board found on December 20, 2007 that substantial public benefit will result from providing special assistance to Maine lobstermen affected by new federal regulations that will take effect October 2008.  The regulations will require the replacement of floating trap lines with sinking ones. 

“We are pleased to assist this traditional Maine industry as it complies with new federal regulations.  FAME stands shoulder-to-shoulder with its fishing partners as they seek to adapt and thrive in the global economy,” stated FAME Board Chair Joyce Maker. 

Banks providing loans to affected lobstermen will be able to obtain a maximum of 75% (as opposed to the usual 60%) commercial pro-rata insurance under FAME’s OnLine Answer (OLA) Program.  FAME insurance exposure is limited to loan proceeds used only for line replacement.  The maximum FAME exposure under the OLA Program is $250,000.  Additionally, the Board voted to reduce the interest rate offered through its Economic Recovery Loan Program from Prime plus 2% to simply Prime.  The Prime Lending Rate is currently 7.25%.  There will be no loan limit so long as loan proceeds are used by fishermen for line replacement.  The loan term will be set for a maximum of three years.  These programs were designed only for loans to Maine-based lobster businesses that will be directly affected by the new federal regulations.  Loan applications must be received by December 31, 2008 and are subject to other terms and conditions deemed necessary or appropriate by FAME. 

The changes will allow Maine lobstermen to begin replacing their lines well before the Fall 2008 deadline, their busiest time of the year.  FAME estimates that the average cost of line replacement to each lobsterman will be $15,000.

"FAME, and the state as a whole, has a strong interest in supporting Maine lobstermen respond appropriately to federal directives that increase their operating costs,” stated Beth Bordowitz, Acting CEO of FAME.  “Maine’s lobstering industry has a great history and hopefully an equally great future, as well.” 

Two of the lending entities with whom FAME will be partnering are Machias Savings Bank and Farm Credit of Maine.

"Machias Savings Bank has always made an extra effort to meet the needs of its commercial fishermen.  This group is occasionally dealt a unique challenge, such as the new sink rope law.  It is with great gratitude that Machias Savings Bank pledges to utilize the programs of FAME to support the lobster industry in its time of need,” stated Dave Eldridge, Vice President of Commercial Banking at Machias Savings Bank.

Robert Horne, Vice President of Farm Credit of Maine, commented:  "Farm Credit of Maine is one of the major lenders to the lobster industry here in the state.  We have heard the concerns from operators about the cost of converting to sinking lines.  Knowing that many operators already have a loan on their boat, teaming up with the Finance Authority of Maine to provide these gear loans makes good sense."

Lobstermen Fact Sheet CLI-OLA1 12-07

Lobstermen Loans Fact Sheet and Application ERLP