CARIBOU — Businesses in Aroostook and Washington counties needing a little financial help now have another avenue to the needed funds. The Northern Maine Development Commission (NMDC) was notified on June 15 that they were selected to receive a $1,250,000 loan from the U.S. Small Business Administration (SBA) Microloan Program.
Officials explained that the funds are loaned to qualified applicants in small amounts, not to exceed $50,000, for a maximum term of six years. The average microloan nationally is $13,000.
“The loans are used for new business or minimal expansion,” said Duane Walton, director of business finance at NMDC. The loans can also be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment.
Walton said the approval of $1,250,000 is significant, as it is the most the SBA will award, and with realignment of economic development regions, where Aroostook and Washington counties are served by NMDC, there was a requirement for additional funds.
“I believe there will be an increase in economic development in the region and that means there will be an increase in need,” said Walton. He said he expects half of the loans to be in Washington County, the other half in Aroostook.
“We asked for the extra money for Washington County and we still have money to loan to businesses in Aroostook County like we always have,” he said.
NMDC is well versed in the microloan program having made 224 loans totaling $4,009,905, creating 281 jobs and retaining 639 jobs with these funds, according to NMDC officials.
It is the prior success with the program, which Walton said allowed the SBA to approve the application in just about a month, a quick period for the federal government.
Another benefit of the microloan program is that each applicant will be eligible for and will be contacted concerning technical assistance provided free of charge by the Business Finance Department, as explained by NMDC officials. Technical assistance is available concerning all aspects of the business and business development. A representative will provide ongoing assistance to help grow the venture and achieve the short-term and long-term goals of the business.
“We work very closely with the applicant after the fact to make sure they are successful,” Walton said.
For more information on the microloan program contact the Business Finance Division at NMDC at (207) 498-8736 or go online at www.nmdc.org.
