File Photo / Tim Greenway
Acting FAME CEO Carlos Mello has been tapped by the governor to lead the quasi-municipal agency permanently.
Updated: July 20, 2022
Maine will get $62M to aid small businesses in rural areas, key sectors
File photo / Courtesy, Professional Logging Contractors of Maine
Maine will receive $62 million in American Rescue Plan funding that will be used in part to support small businesses in forestry and other key sectdors.
Maine will receive $62 million in new federal funding to invest in small businesses in rural areas and in key sectors from forestry to tourism.
The new Grow Maine initiative, to be administered by the Finance Authority of Maine, will offer greater access to capital for entrepreneurs and small business owners to sustain or expand their operations.
Funds will come from the federal State Small Business Credit Initiative, which was expanded and reauthorized by the federal American Rescue Plan Act. Nationwide, the new initiative will provide nearly $10 billion to states, which have submitted plans to the Treasury Department for approval on using the funds.
Gov. Janet Mills designated FAME to accept the funds and lead the program in Maine, in conjunction with statewide lending partners.
“Small businesses are the backbone of Maine’s economy," Mills said in a Monday news release. "The Grow Maine initiative will help Maine small business owners and aspiring entrepreneurs have access to the capital they need to grow or start a business and create good-paying jobs in communities across the state."
Carlos Mello, acting CEO of FAME, said his organization "is pleased to partner with various economic development entities across Maine, as well as our commercial lending partners, to help successfully support Maine’s small businesses."
In a separate announcement on Tuesday, U.S. Sen. Angus King, I-Maine, and U.S. Rep. Chellie Pingree, D-Maine 1st District, said the new funding will create four programs, including two venture capital programs for Maine startups with fewer than 10 employees. The goal is to generate opportunities for minority-owned and rural small businesses.
The funds will also create a loan participation program to support long-term growth in key sectors including forestry, agriculture, the ocean economy and tourism. State Small Business Credit Initiative grants are expected to generate up to $10 of private investment for every $1 of federal capital.
“From corner stores to aquaculture innovators, Maine small businesses have always been fundamental to our state’s communities and success,” King and Pingree said in a joint statement.
“These new funds from the American Rescue Plan will be a difference-maker for Maine businesses — including promising startups, rural employers, and those involved in vital industries like fishing and logging. With an expected ten-to-one return on funding, this investment will be a cost-effective job-creator that brings invaluable economic opportunity to communities across the state.”
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