Staff Writer
With Aroostook County declared a federal disaster area, the county’s economic development agency will team up with state officials to offer a recovery loan program for flood victims. The issue was one of several financial issues discussed Thursday at the Northern Maine Development commission’s monthly session.
According to Duane Walton, NMDC’s business finance director, the commission will put up $500,000, while the Finance Authority of Maine will offer $1 million in recovery funds. The money would be used for low interest, two points below Wall Street prime, loans for victims of the April 30 flood.
Walton said Monday that the agency’s hope to increase its pool to $1 million with another $500,000 from FAME.
Walton said that NMDC officials would coordinate the loan activities for both agencies, including closing the loans. Individual loans could range up to $75,000, Walton explained to the board. Applications would be required by June 30, Walton said.
These bridge loans will be for businesses to get back to normal operations with the funds provided to be paid back with insurance proceeds that the businesses may be eligible for any losses not covered by insurance the Small Business Administration disaster loan program may provide, according to Walton.
Each business is advised to “diligently” pursue applications and filing of claims for long-term disaster loans with SBA and any insurance coverage that may be available, Walton said.
NMDC officials were scheduled to begin processing loan applications on Monday. The loans will be written for a six-month period (interest payments only). An additional six months could be added pending receipt of permanent funding from insurance proceeds or a disaster loan program, according to Walton. The maximum term for the loan is one year.
FAME will also offer enhanced commercial loan insurance, according to a separate announcement. Typically, the program provides lenders with up to 60 percent pro-rata loan insurance. However, FAME will increase the insurance percentage to 75 percent on loans of $100,000 or less to affected businesses.
In other activity, NMDC officials have received federal funds to conduct several waste management programs, such as “bear-proofing” solid waste containers, and the need to separate valuable wood waste from construction debris.
The US. Department of Agriculture’s Rural Development Program has awarded NMDC $97,000 for the solid waste program, according to Connie Bondeson, an environmental planner, who addressed the NMDC board. The agency received an additional $80,000 for technical assistance to conduct a GIS (geographic information services) with some small to medium-sized utilities.
In the larger grant, one of the tasks to be completed is help reduce the number of complaints of bears getting into garbage. Maine has 23,000 black bears, the highest population in the lower 48 states, Bondeson said.
State wildlife officials don’t have the funds to relocate bears, so the outcome for the animal after a complaint can be less than satisfactory.
The aim of the program is to “educate the public and save a few bears,” Bondeson said.
Another part of the grant will be used to teach people the importance of separating wood waste from construction and demotion debris. Bondeson explained that the wood waste has an economic value as bio fuel. The agency plans to work with the Maine Department of Environmental Protection in the program.
The collection of household hazardous waste, such as pesticides and paint thinners, will be conducted under the $97,000 grant, as well as development of a regional multi-media training program on recycling.
A second grant of $80,000 from the USDA Rural Utilities Service Water and Environmental Program create utility maps using the development agency’s GIS capabilities. Bondeson said that NMDC officials would work with three small- to medium-sized utilities to develop the maps.
NMDC Director Robert Clark also told that the board that the agency has applied for a $150,000 grant that will be used to help local business procure government contracts. Nearly 40 business clients qualify for the program, which include conferences, outreach and counseling on how to win a government contact, Clark explained.
The funds will allow NMDC to hire one fulltime person.
“It’s a great opportunity for us,” said Clark. “(The process) has taught us that there is money out there because people don’t have the match.”
A decision by the federal government is expected by October and, if successful, the program would start next January, Clark said.
The director also announced that the agency had received a contract from the Maine Department of Transportation to maintain 14 rest area sites in Aroostook County for a total of $72,185. Clark said that the agency has subcontracted with three venders to maintain the rest areas, which includes cleaning bathrooms and hauling the trash from the site.
The contract length is from May 19 to Oct. 28, according to Clark.
In other business, Clark announced that the NMDC annual meeting is on Thursday, June 19 at the Lakeview Restaurant in St. Agatha.
