The Finance Authority of Maine at its board meeting on Thursday approved 90% loan insurance on a loan totaling $944,000 by TD Bank to Maibec USA LLC, a wholly owned subsidiary of Groupe Maibec Inc. that’s part of a family-owned Canadian company headquartered in Quebec, Canada.
The loan would be used to purchase a feed conveyor deck and de-barker machine to bring operational efficiencies to Maibec USA’s mill operations in the Aroostook County town of Masardis.
FAME’s actions, in partnership with TD Bank, are expected to help retain 145 Maine jobs at the Masardis mill, which Maibec purchased from Fraser Timber in 2015.
“FAME is pleased to support Maibec’s plans for efficiencies and continued operations in Aroostook County,” FAME Chief Executive Officer Bruce Wagner said in a news release. “We are happy to help facilitate this transaction to help the company better optimize the lumber mill for long-term success.”
FAME’s Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution. For a business, it may mean the difference between obtaining a loan or never getting the opportunity to start a business.
“We are grateful for FAME’s assistance with our plans,” said Jacques Vachon, vice president of finance and administration at Maibec Inc. “This financing should result in additional work at the mill with a better value-added yield for our operations.”