NMDC lowers business loan rates

    CARIBOU — Local businesses needing a Small Business Administration (SBA) micro-loan can now get one at a lower interest rate. That was one of several decisions made by the Northern Maine Development Commission (NMDC) Executive Board at its monthly meeting Thursday.
    The board approved a reduction from 7 to 5 percent. Business Finance Director Duane Walton said NMDC has SBA micro-loan funds available and lowering the rate to 5 percent makes them more attractive to businesses.
    “Our interest rate to SBA for repaying those loans has been considerably reduced and we are passing that savings on to the public,” said Walton. “This makes our new loan fund from SBA at $1.25 million which allows for economic development in Aroostook County and enhancements for small business.”
    The funds are loaned to qualified applicants in small amounts, not to exceed $50,000, for a maximum term of six years.
    They are typically for equipment purchases, minimal expansion or working capital.
    The board also approved a grant application for $80,000 to the Surdna Foundation. The private foundation’s Strong Local Economies program aims to create strong and sustainable local economies that include a diversity of vibrant businesses and sectors, and improves residents’ livelihood and access to quality jobs and training within a region through investments.
    “The grant funds we are applying for will help us develop a Career Pathways model for the region,” said Ryan Pelletier, director of economic and workforce development at NMDC. “We are currently working with Career Pathways projects in certain parts of the county, but we would like to expand that to involve more businesses, do some gap analysis to determine what kinds of skills are missing in our workforce and try to mirror those to training programs in the region.”
    Pelletier added that if the grant is awarded a portion of the funds will be used to better publicize some of the work ready programs already available.
    “The number-one issue that I have heard over and over again from employers is the lack of preparedness of new hires when it comes to work-ready skills,” he said. “That could be anything from proper dress, to communication skills, to showing up on time, so these grant funds would help address the problem.”
    Pelletier said the grant application will hopefully be submitted by Dec. 1 with a decision expected by March 1.
    The Executive Board also approved two new part-time positions including a 20-hour per week assistant to the World Acadian Congress Maine Regional Coordinator, Lorraine Pelletier.
    The person will be based out of Madawaska. Applicants must be fluent in both English and French.
    The position will run through the 2014 event. Also approved is a 10- to 15-hour per week business outreach coordinator for the Disability Education Initiative program.
    Also during the meeting two new municipal managers; Austin Blees, city manager of Caribou and Gene Conlogue, town manager of Houlton, were appointed to the Executive Board.