An Act To Authorize a General Fund Bond Issue and To Assist in the Creation of Jobs through Regional Economic Development
Maine Legislature, Session 126, LD 1043
Committee Amendment CA_A_H851 (House)
Amends: 10 MRSA §1026-M

COMMITTEE AMENDMENT" A, to H.P. 734, L.D. 1043, Bill, "An Act To 
Authorize a General Fund Bond Issue and To Assist in the Creation of Jobs through 
Regional Economic Development" 
Amend the bill by striking out the title and sUbstituting the following: 
'An Act To Improve the Regional Economic Development Revolving Loan Program' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRS A §1026-M, sub-§2, as amended by PL 1999, c. 401, Pt. 000, 
§ 1, is further amended to read: 
2. Eligible corporations. The fund is open to local, regional and statewide nonprofit 
or governmental economic development corporations or entities, that are capable of 
providing financial assistance to businesses in order to create and protect jobs, as well as 
revitalize downtowns and build strong communities and a sustainable economy, referred 
to in this section as "corporations." In the case of loans to quality child care proj ects, the 
authority may also provide loans directly to eligible borrowers. 
To be eligible for 
assistance from the fund: 
A. 
A corporation must apply to the authority to participate in the fund. 
The 
application must describe the corporation and its funding sources, the region or 
regions it serves, its methods and criteria for qualifying borrowers, including any 
targeted lending and economic development strategies, its expertise in management 
assistance and financing of small and emerging businesses, the method by which it 
will leverage funds from other sources in an amount at least equal to 2 times the 
amount requested from the fund and other information the authority determines 
necessary; 
B. A corporation must have a strategy for the creation and retention of jobs, an 
effective small business marketing and technical assistance plan and enough expert 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A" to H.P. 734, L.D. 1043 
assistance available to it to underwrite, document and service loans and assist its 
clients or it must have a strategy for real estate development including commercial 
and mixed-use real estate and community facilities; 
C. The corporation must be determined by the authority to be able to prudently and 
effectively administer a direct loan fund and to coordinate with other business 
assistance programs and employment training and social assistance programs; 
D. 
The corporation must propose performance measurements and goals and a 
process for monitoring compliance with proposed measurements and goals. The 
authority shall assist corporations in developing loan or equity-like debt underwriting 
and administrative capacity and in portfolio monitoring and servicing and may 
establish one or more advisory boards or committees to assist corporations; and 
E. A child care project must apply to the authority or to a corporation and meet the 
eligibility criteria for a borrower. 
Sec. 2. 10 MRSA §1026-M, sub-§3, ~~A and C, as enacted by PL 1993, c. 
722, Pt. C, § 1 and affected by §2, are amended to read: 
A. The size of the region or regions served by the corporation and the expected 
demand for loan funds in that region or those regions; 
C. Whether an eligible corporation will serve statewide or will serve a geographic 
area or segment of potential business borrowers not served by other applicants. 
Sec. 3. 10 MRSA §1026-M, sub-§5, as amended by PL 2001, c. 639, §2, is 
further amended to read: 
5. Administrative costs. A corporation may not use any money disbursed from the 
fund by the authority for administrative expenses, but may charge a commitment fee of 
up to 2% and may use interest earnings not to exceed 7% of each loan annually on loans 
to cover reasonable admiR-istrative, teclmical assistanoe and ed-scMion oosts operating 
costs, including loan fund management, technical assistance and education. The authority 
shall review and approve a corporation's administrative expenses on an annual basis. The 
authority may establish by rule reasonable administrative fees for its administration of the 
fund. 
Sec. 4. 10 MRSA §1026-M, sub-§6, ~A, as amended by PL 2009, c. 131, §4, is 
further amended to read: 
A. Loans may not exceed $250,000 $350,000 to a borrower, including an affiliated 
entity, and approval of the authority is required for any loan in excess of $150,000. 
Loans for qsality ohild care projects may not eJweed $100,000 to a borrower. Loans 
or portions ofloans to a quality child care project to be used solely for lead abatement 
may not exceed $15,000. 
Sec. 5. 10 MRSA §1026-M, sub-§6, ~B, as amended by PL 2009, c. 131, §5, is 
further amended to read: 
B. Loans over $100,000 of $50,000 or more for borrowers other than quality child 
care projects may not exceed -l-f.; 112 of the net new funds being provided to a 
borrower. Loans of $50,000 to $100,000 for projects other than qsality child care 
oroiects may not exceed 112 of the net ne>.v fHHds beiH2' H'FflVided tfl a l=IflITflWeor 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 734, L.D. 1043 
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 MRS A §1026-M, sub-§6, ~C, as amended by PL 2007, c. 683, Pt. B, 
§ 1, is further amended to read: 
C. 
The authority and each corporation shall establish interest rates, amortization 
schedules and repayment terms for each borrower, except that loans may not be for a 
term longer than 20 years and: 
(1) Loans to a quality child care project must bear a rate of interest equal to 3%, 
Rot ineludiR2: aRV admiRistrative eosts or fees not greater than 5%; or 
(2) Loans to any other eligible borrower may not bear a rate of interest greater 
than the prime rate of interest plus 7%. 
Sec. 7. 10 MRSA §1026-M, sub-§7, ~A, as amended by PL 2011, c. 11, §1, is 
further amended to read: 
A. The business for which funds are requested has W 100 or fewer employees or 
annual sales of $5,000,000 $10,000,000 or less, and it consists of or involves at least 
one of the following: 
(1) Manufacturing technologies, such as value-added wood products, specialty 
fabricated metal and electronic products, precision manufacturing and use of 
composites or advanced materials; 
(2) 
Technologies, such as advanced information systems, advanced 
telecommunications, energy and environmental products and services; 
(3) 
Biologieal Value-added natural resource enterprises and biological and 
natural resource technologies, such as aquaculture, marine technology, 
agriculture, forestry products and biotechnology; 
(4) A business converting from defense dependency; 
(5) A business significantly engaged in export of goods or services to locations 
outside the State; 
(6) A business that dedicates significant resources to research and development 
activities; 
(7) Other businesses with +0 U 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~~ 
(9) A business significantly engaged in commercial and mixed-use real estate 
and community facilities: and 
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COMMITTEE AMENDMENT ,,/Jr. to H.P. 734, L.D. 1043 
(10) A business significantly engaged in serving tourists, such as in the areas of 
outdoor recreation, culture and heritage and hospitality. 
Notwithstanding the requirements of this paragraph, until June 30, 2012, a project or 
a borrower that is eligible for loan insurance under section 1026-A is eligible for 
financial assistance under the program. 
Sec. 8. 10 MRSA §1026-M, sub-§8, as enacted by PL 1993, c. 722, Pt. C, §1 and 
affected by §2, is amended to read: 
8. 
Priorities. 
Among eligible applicants, a corporation shall give priority to 
businesses and projects with the potential of meeting one or more of the following 
objectives. 
A. The financing will help the business pursue a business that adds significant value 
to raw materials or inventory. 
B. The financing is likely to result in a long-term net increase in permanent, quality 
jobs that meet a local or regional need or the retention of jobs in jeopardy of being 
lost. 
Sec. 9. Contingent effective date. 
This Act does not take effect until the 
effective date of an act of the Legislature that appropriates or a\locates a sum of at least 
$1,000,000 to the Finance Authority of Maine for the Regional Economic Development 
Revolving Loan Program and that specifies that the funds are appropriated or allocated 
for the purposes of this Act. The Finance Authority of Maine shall notify the Revisor of 
Statutes and the Secretary of State when the funds are appropriated or allocated by the 
Legislature pursuant to this section. I 
SUMMARY 
This amendment strikes the bill and replaces it with changes to the laws regarding the 
Regional Economic Development Revolving Loan Program of the Finance Authority of 
Maine. It adds revitalization of downtowns and building stronger communities and a 
sustainable economy as purposes of the program. It clarifies that a lending corporation 
under the program may use revenue from commitment fees and interest to cover its 
operating costs, including loan fund management, increases the dollar amount of the 
maximum loan available to a borrower, allows a lending corPoration to serve more than 
one region and adjusts other financing terms. It adds businesses engaged in commercial 
and mixed-use real estate and community facilities, businesses engaged in serving tourists 
and value-added natural resource enterprises to the list of businesses that are eligible for 
financial assistance under the program. It changes the program to allow participation by 
companies with 100 or fewer employees, instead of 50 or fewer, and by companies with 
annual sales of up to $10,000,000, instead of $5,000,000 or less. It also amends the total 
loan amount by increasing the cap from $250,000 to $350,000 for corporations and from 
$100,000 to $350,000 for quality child care projects. 
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COMMITTEE AMENDMENT" A' to H.P. 734, L.D. 1043 
The amendment also adds a contingent effective date, under which the provisions of 
the Act do not take effect until the effective date of an act of the Legislature that 
appropriates or allocates a sum of at least $1,000,000 to the Finance Authority of Maine 
for the Regional Economic Development Revolving Loan Program and that specifies that 
the funds are appropriated or allocated for the purposes of this Act. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/17114 7tvac 
LD 1043 
LR 1819(02) 
An Act To Authorize a General Fund Bond Issue and To Assist in the Creation of Jobs through 
Regional Economic Development 
Fiscal Note for Bill as Amended by Committee Amendment if (U -851\ 
Committee: Appropriations and Financial Affairs 
L I 
I) 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Funds 
Fiscal Detail and Notes 
Additional costs to the Finance Authority of Maine to amend its rules relating to the Regional Economic Development 
Revolving Loan Program can be absorbed within existing budgeted resources. 
LRI819(02) - Fiscal Note - Page 1 of 1