An Act To Modify the Regional Economic Development Revolving Loan Program
Maine Legislature, Session 124, LD 1394
Committee: Business, Research and Economic Development
Sponsors: SMITH, SCHNEIDER, AUSTIN, GILES, HUNT, MARTIN, PRESCOTT, RECTORofKnox, SULLIVAN
Amends: 10 MRSA §1026-M

MAINE STATE LEGISLATURE 
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124th MAINELE,GISLATURE 
Legislative Document 
No. 1394 
I{.P. 973 
House of Representatives, Aplil 2, 2009 
An Act To Modify the Regional Economic Development Revolving 
Loan Program 
Submitted by the Finance Authority of Maine pursuant to Joint Rtile 204. 
Reference to the Committee on Business, Research and Economic Development suggested 
alid ordered printed. 
, Presented by Representative SMITH of Monmouth. 
Cosponsored by Senator SCHNEIDER of Penobscot and 
'71/;n~d; 1J1. mtU:~{' 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: AUSTIN of Gray, GILES of Belfast,HUNT of Buxton, MacDONALD of 
Boothbay, MARTIN of Orono, PRESCOTT of Topsham, Senators: RECTORofKnox, 
SULLIVAN of York. 
Prinled nn rccysl~{l'p:Jpt:r 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRS A §1026-A, sub-§5, as enacted by PL 2003, c. 537, §30 and 
affected by §53, is amended to read: 
5. 
Limitations on loan insurance. 
The authority may establish a maximum 
insurance liability for particular sectors and for existing loans by rule. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 2. 10 MRS A §1026-M, sub-§3, as ·amended by PL 2001, c. 639, § 1, IS 
further amended to read: 
3. Disbursements from fund. If an application is approved, the authority shaH 
determine the amount to be disbursed to the corporation, taking into account: 
A. The stze of the region served by the corporation and the expected demand for loan 
funds in that region; . 
B. The demand for funds from other eligible corporations in relation to the total 
amount available in the fund; and 
C. 
Whether an eligible corporation will serve a geographic area or segment of 
potential business borrowers not served by other applicants. 
, 
A corporation may not receive more than $2,500,000 $3,500,000 from the fund. Funds 
must be disbursed .directly to and retained by the eligible corporation in accordance with 
the contract between the corporation and the authority. Funds must be disbursed to the 
corporation in the form of a loan or a grant. The authority may, in its discretion, disburse 
fund amounts in one lump sum or periodic disbursements. 
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Sec. 3. 10 MRSA §1026-M, sub-§4, ~, as enacted by PL1993, c. 722, Pt. C, 
.§ 1 and affected by §2, is amended to read: 
B. The corporation shaH review applications for financial assistance, determine the 
feasibility of the application and approve or deny the application, which 
determination is final in the case of loans under $100,000 $150,000 orin the case of 
denials of any amount; 
Sec. 4. 10 MRSA §1026-M, sub-§6, 6[A, as amended by PL 1999, c. 401, Pt. 
000, §2, is further amended to read: 
A. Loans may not exceed $200,000 $250,000 to a borrower, including an affiliated 
entity, and approval of the authority is required for any loan in excess of $100,000 
$150,000. 
Loans for quality child care projects may not exceed $100,000 to a 
borrower. Loans or portions of loans to a quality child care project to be used solely 
for lead abatement may not exceed $5,0-00$15,000. 
Sec. 5. 10 MRS A §1026-M, sub-§6, 6jfB, asainended by PL 2003, c. 195, §1, is 
further amended to read: 
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B. Loans over ~ 
$100,000 for borrowers other than quality child care projects 
may not ,exceed 1/3 of the net new funds being provided to a borrower. Loans of . 
$50,000 er-fes.s to $100,000 for projeCts other than quality child care projects may not 
exceed 1/2 of the net new funds being provided to a borrower. Loans of less than 
$50,000 and loans for quality child. care projects may be for the total amount of new 
funds being provided to the borrower. 
Sec. 6. 10 MRSA §1026-M, sub-§7, ~A, as amended by PL 1999, c. 401, Pt. 
000, §3, is further amended t6 read: 
A. The business for which funds are requested has 50 or fewer employees or annual 
sales of $5,000,000 or less, and it consists of or involves at least one of the following: 
(l) Advanced manufacturing Manufacturing technologies, such as value-added 
wood products and~ specialty fabricated metal and electronic products, precision 
manufacturing and use of composites or advanced materials; 
(2) Advanced information system technologies Technologies, such as advanced 
information systems, advanced telecommunications, energy and environmental 
prQducts and services; 
(3) Advanced biological and Biological and natural resource technologies, such 
as 
aquaculture, 
marine 
technology,. agriculture, 
forestry 
products 
and 
biotechnology; 
. 
(4) A business converting froTh defense dependency; 
(5) A business significantly engaged in export of goods or services to locations 
outsjde the State; 
(6) A business that dedicates significant resources to research and development 
activities; 
(7) Other businesses with.:S lQ or fewer employees; and 
(8) 
A child care project that includes any business that, for compensation, 
provides a regular service of care and protection for any part of a day less than 24 
hours to a child or children under 16 years of age whose parents work outside the 
home, attend an educational program or are otherwise unable to care for their 
children. 
Notwithstanding the requirements of this paragraph, until June 30, 2010, a project or 
a borrower that is eligible for loan insurance under section 1026-A is eligible for 
financial assistance under the program. 
SUMMARY 
This bill amends certain proVISIOns of the Regional Economic Development 
Revolving Loan Program under the Finance Authority of Maine. 
1. Current law provides that a corporation may not receive more than $2,500,000 
.from the program fund. This bill increases that amount to $3,500,000. 
2. Current law provides that a financial assistance application determination is final 
in the case of loans under $100,000. This bill increases that amount to $150,000. 
3. Current law specifies financing terms and conditions for loans made from program 
funds. This bill amends certain ofthose provisions. 
4. This bill amends the descriptions of eligible projects, and expands eligibility to 
entities until June 30; 2010. 
5. 
Current law specifies that a business with 5 or fewer employees may be eligible 
for financial assistance under the program. This bill increases the number of employees 
to 10 or fewer. 
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