$500,000 additional financing to assist wood fiber-based insulation manufacturer at former Madison paper mill in Somerset County

AUGUSTA — At its monthly meeting held on January 18, 2024, the Finance Authority of Maine (FAME) approved additional financing for GO Lab, Inc. (d/b/a TimberHP), a manufacturer of wood fiber-based insulation products located in Madison. FAME’s actions are expected to help to create and retain approximately 114 jobs in Somerset County.

FAME approved a $500,000 FAME Direct Loan to support the company’s purchase of explosion suppression equipment needed to complete the second and third production lines for its board and batten insulation products. The Maine Rural Development Authority also recently approved a $500,000 loan to GO Lab, Inc. to assist with this same project.

TimberHP manufactures high-performing wood fiber insulation made with renewable resources. Their products are resistant to moisture liabilities, mold and fire, and offer superior properties to reduce heating and cooling loads. Wood fiber insulation is cost-competitive and has been manufactured and used in Europe for decades.

“We are grateful for the continued support of FAME. TimberHP plans to complete our production line for our board insulation product in Q2 of 2024, which will complete TimberHP’s suite of building products offered in Madison Maine. Financing we have received from FAME, the Maine Rural Development Authority, and other economic development entities across the state have been instrumental in getting us to the finish line on schedule,” stated Dr. Joshua Henry, GO Lab, Inc. President.

“We are pleased to provide additional support for GO Lab’s project in Madison,” stated FAME CEO Carlos Mello. “Finding new uses for wood fiber, including innovative building materials, has the potential of revitalizing the forest products industry in Maine, which we fully support.”

In addition to today’s FAME Direct Loan financing, FAME previously approved up to $85 million in conduit bond financing for GO Lab, Inc; approximately $860,000 in Seed Capital Tax Credit financing; as well as a FAME Direct Loan totaling $1,200,000, with FAME as lead lender at $500,000. Other partners in that loan include Coastal Enterprises Inc. (CEI) at $250,000, and Maine Technology Institute (MTI) at $200,000. Eastern Maine Development Corporation (EMDC) also has approved a $250,000 loan. 

Other Maine financing entities have partnered to provide support for the purchase and refurbishment of the Madison mill, as well as to purchase the necessary production equipment for the company’s operation. The Maine Rural Development Authority (MRDA) has approved $1 million for the project, while the Town of Madison has authorized a $400,000 loan, which includes a Community Development Block Grant Program (CDBG) contribution through the DECD of $300,000, which will be used for engineering costs. Additionally, the Somerset Economic Development Corp. (SEDC) has authorized a $300,000 loan for the project. The Maine Venture Fund recently invested $3.5 million in the company as part of the Grow Maine program funded through federal State Small Business Credit Initiative funds.

Also at the recent board meeting, FAME approved a renewal of Commercial Loan Insurance on a $2.2 million line of credit from Gorham Savings Bank for American Unagi. American Unagi, which operates in Waldoboro, purchases locally harvested glass eels and grows them to market size for the domestic seafood market. In 2019, FAME approved a FAME Direct Loan of $1 million for the company, as well as 50% pro rata Commercial Loan Insurance on the Gorham Savings Bank line of credit for the purchase and construction of a Recirculating Aquaculture System (RAS). Twelve jobs are expected to be created or retained in Lincoln County by FAME’s financing.

FAME’s Direct Loan provides access to operating capital for startups and existing businesses for most business purposes. Loans up to $1 million may be available if substantial public benefit is demonstrated and sufficient funds are available. FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution or investment firm. For a business, it may mean the difference between obtaining a loan or never getting the opportunity to start a business.