Grant aids business in creating jobs
By Kathy McCarty
Staff Writer
EAGLE LAKE — A local business is one of nearly two dozen establishments awarded a Community Development Block Grant through the CDBG Economic Development Program.
Phoenix Firewood, Inc., of Eagle Lake, will receive $47,500 for capital equipment, which will in turn help the business create at least two jobs.
“The Maine Department of Economic and Community Development (DECD) has awarded its entire allotment of Economic Development Program (EDP) awards to 20 communities and businesses across the state,” said George Gervais, DECD commissioner.
According to Gervais, the EDP provides cities and towns with gap funding to assist identified businesses in the creation and/or retention of jobs for low- and moderate-income people. The funds are administered by DECD as part of the federally-funded CDBG program.
“This year, EDP committed nearly $3.1 million to various economic development projects from York to Fort Kent, creating or retaining more than 140 jobs. This amount represents unused 2011 EDP funds combined with the 2012 allocation,” Gervais said.
“These awards have a direct impact on jobs and new revenue, benefiting not only these communities but the entire state,” said Gervais. “There were significant changes to the program this year which made it a more attractive tool for communities to utilize on behalf of Maine businesses.”
Gervais said communities and businesses had long complained that the program was too restrictive and the standards too cumbersome to meet, therefore projects were not seeking the program.
“This year, the LePage administration made changes to make the program more attractive and, thus, more effective, tailoring the program and removing the per capita income requirement for all jobs created. As a result, more communities realized the benefit of the program on behalf of businesses through the creation of greater economic opportunities — primarily for low- and moderate-income residents,” said Gervais.
Gervais noted many business owners believe the program will positively impact their future prosperity.
Projects receiving EDP funds must provide a 100 percent cash match of the total EDP award and matching funds must be directly related to the activities undertaken with EDP funding.
Other Aroostook County towns awarded funding include: Madawaska, The Inn of Acadia, $300,000 for site improvements, HVAC system upgrade and elevator repairs, with 11 jobs created; Our Father’s Place of St. Agatha will receive $50,000 for purchase of equipment and working capital, creating two jobs; Fort Kent, Todd’s Custom Contracting will have $50,000 for the purchase of equipment, creating two jobs, and Riverview Homes, Inc., will receive $90,000 for expansion of its workshop facility, creating three positions.
For a complete list of EDP awards for 2012, go to www.meocd.org.
