HAROLD ALFOND COLLEGE CHALLENGE
CELEBRATES FIRST SIX MONTHS OF AWARDS
AUGUSTA — 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.
Paintings by Two Maine Artists on Display at FAME.
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.
FAME Board Approves $500,000 Loan To Western Maine Company For Facility, Energy Improvements.
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.”
FAME Earns Highest Guarantor Default Recovery Rates in Nation.
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.
Governor Announces Trucker Assistance and Availability of Energy Conservation Funds Through FAME, PUC and DEP.
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.
FAME to Offer Flood Disaster Loan Assistance to Maine Businesses.
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;
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.
FAME Helps to Create and Preserve 275 Maine Jobs.
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 $500,000 Economic Recovery Loan for Maine Woods Company. The company is heavily dependent on the construction industry, which, like many other industries, is facing global economic challenges. This loan will provide a bridge to recovery for the company. “This assistance will allow our company to prevail over the current national slow-down in the construction industry,” stated Seven Islands Land Company President John McNulty. “We are grateful to FAME for its assistance.” Seven Islands Land Company, which manages over 850,000 acres of land in Maine, owns part of Maine Woods Company.
"FAME’s actions today in helping to preserve and grow approximately 275 Maine jobs is consistent with its mission of making business and education work for Maine,” stated Beth Bordowitz, Acting CEO of FAME. “We wish these businesses continued success in these challenging economic times.”
FAME Announces Education Site Redesign.
In an effort to enhance the online experience of students, schools and counselors in Maine, FAME has redesigned and expanded the education portion of our web site. Most notable in this web site redesign is the creation of a new section titled “For Student Loan Borrowers.” This section was developed to provide comprehensive loan repayment information to borrowers, including a variety of calculators and information on how to avoid default. Financial Aid Administrators, Guidance Counselors and Advisors will notice that we have expanded the site to include information regarding our GOAL$ program.
FAME Reduces Interest Rate and Increases Funding for Key Loan Programs.
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.
Paintings by Maine Artist Irene Rothe on Display at 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
FAME to Help Maine Lobstermen to Comply with New Federal Regulations.
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 $15,000.
"FAME, and the state as a whole, has a strong interest in supporting Maine lobstermen respond appropriately to federal directives that increase their operating costs,” stated Beth Bordowitz, Acting CEO of FAME. “Maine’s lobstering industry has a great history and hopefully an equally great future, as well.”
Two of the lending entities with whom FAME will be partnering are Machias Savings Bank and Farm Credit of Maine.
"Machias Savings Bank has always made an extra effort to meet the needs of its commercial fishermen. This group is occasionally dealt a unique challenge, such as the new sink rope law. It is with great gratitude that Machias Savings Bank pledges to utilize the programs of FAME to support the lobster industry in its time of need,” stated Dave Eldridge, Vice President of Commercial Banking at Machias Savings Bank.
Robert Horne, Vice President of Farm Credit of Maine, commented: "Farm Credit of Maine is one of the major lenders to the lobster industry here in the state. We have heard the concerns from operators about the cost of converting to sinking lines. Knowing that many operators already have a loan on their boat, teaming up with the Finance Authority of Maine to provide these gear loans makes good sense."
Lobstermen Fact Sheet CLI-OLA1 12-07
Lobstermen Loans Fact Sheet and Application ERLP
FAME Announces "GOAL$", Comprehensive Default Prevention and Outreach Program.
The Finance Authority of Maine (FAME) today announced the creation of a comprehensive default prevention and outreach program, “GOAL$,” which stands for “Great Opportunities to Achieve Life Success.”
FAME created the program in light of the following statistics:
Through “GOAL$,” FAME is renewing its commitment to college access, financial literacy, and default prevention by implementing a series of new initiatives such as:
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.
