An Act To Increase Success and Promote Growth among Maine Small Businesses
Maine Legislature, Session 128, LD 1501
Committee: Labor, Commerce, Research and Economic Development
Sponsors: VITELLI, PIERCE, JACKSON, WHITTEMORE, MASTRACCIO, RECKITT, STANLEY, TEPLER

Legislative Document
No. 1501
S.P. 526
In Senate, April 20, 2017
An Act To Increase Success and Promote Growth among Maine 
Small Businesses
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator VITELLI of Sagadahoc.
Cosponsored by Representative PIERCE of Dresden and
Senators: JACKSON of Aroostook, WHITTEMORE of Somerset, Representatives: 
MASTRACCIO of Sanford, RECKITT of South Portland, STANLEY of Medway, TEPLER of 
Topsham.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §§13063-J to 13063-L, as enacted by PL 2001, c. 471, Pt. A, 
§7, are amended to read: 
§13063-J.  Definitions 
As used in this article, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Community-based organization.  "Community-based organization" means a 
nonprofit organization that has: 
A.  A viable plan for providing training and technical assistance to microenterprises 
small businesses; 
B.  Broad-based community support; 
C.  An adequate source of operating capital; and 
D.  A demonstrated need for funding to provide training and technical assistance to 
microenterprises. small businesses; and 
E.  A demonstrated ability to leverage existing community-based resources and a plan 
to promote collaboration and connection among entrepreneurs and community 
resources. 
2.  Fund.  "Fund" means the Maine Microenterprise Small Business Initiative Fund 
established in section 13063-K. 
3.  Small business.  "Microenterprise Small business" means a business located in 
the State that produces goods or provides services and has 20 or fewer than 10 full-time 
equivalent employees, including, but not limited to, contractors and independent 
consultants, particularly those in trades and technology industries; family-owned small 
businesses whose founders are nearing retirement; small businesses undergoing change of 
ownership; and small businesses engaged in agriculture, forestry or fishing. 
§13063-K.  Maine Small Business Initiative Fund 
1.  Fund established.  The Maine Microenterprise Small Business Initiative Fund is 
established as a nonlapsing fund administered by the department.  The fund consists of 
money appropriated to it by the Legislature from the General Fund and eligible 
investment earnings from fund assets.  The fund must be held separate from all other 
money, funds and accounts, and all eligible investment earnings from fund assets must be 
credited to the fund. 
2.  Fund purposes.  The department shall administer the fund to provide grants to 
community-based organizations to aid them in providing technical assistance and training 
to microenterprises small businesses or for training to small businesses that show a high 
potential for growth, including training to provide them with the network, resources and 
motivation required to build a sustainable business of size and scale. 
§13063-L.  Application process 
1.  Process established.  The department shall adopt rules establishing an application 
process for fund grants for the purposes set forth in section 13063-K, subsection 2.  In 
establishing the application process, the department shall consult with business experts 
involved with microenterprises small businesses in the State. 
2.  Process requirements.  The application process must be competitive.  An 
applicant shall specify whether a grant is sought for microenterprise small business 
technical assistance or training or a combination thereof or for training to small 
businesses that show a high potential for growth, including training to provide them with 
the network, resources and motivation required to build a sustainable business of size and 
scale.  In making grants, the department shall give priority to applications that: 
A.  Are joint applications by 2 or more community-based organizations or otherwise 
provide for cooperation among community-based organizations; 
B.  Target aid to low-income individuals; or 
C.  Target aid to areas of high unemployment or to underserved areas of the State or 
areas with a higher percentage of small businesses with 5 or fewer employees and 
low median household incomes. 
The department may establish additional criteria for assessing applications for fund 
grants. 
3.  Requirement for applicant for grant to provide training to small businesses 
that show high potential for growth.  An applicant for a grant to provide training to 
small businesses that show a high potential for growth must demonstrate a proven ability 
to increase the growth of small business training participants. 
4.  Eligibility requirements for a small business that shows a high potential for 
growth.  In order to be eligible for training under this section, a small business with a 
high potential for growth must have been established for at least 3 years and have annual 
revenue between $200,000 and $5,000,000 per year. 
5.  Technical assistance and training.  Technical assistance and training must 
address issues of regulatory compliance, personnel training and support, including wages, 
hours, benefits, health and wellness and environmental and safety issues, and other issues 
that affect performance, management and legal obligations of small business owners. 
6.  Match required.  A community-based organization that receives a grant from the 
fund shall provide a 50% match in the form of cash, staff time and overhead expense 
directly attributable to small business training and technical assistance. 
Sec. 2.  Maine Revised Statutes headnote amended; revision clause.  In the 
Maine Revised Statutes, Title 5, chapter 383, subchapter 2, article 2-B, in the article 
headnote, the words "Maine microenterprise initiative" are amended to read "Maine small 
business initiative" and the Revisor of Statutes shall implement this revision when 
updating, publishing or republishing the statutes. 
Sec. 3.  Maine Revised Statutes amended; revision clause.  Wherever in the 
Maine Revised Statutes, Title 5, chapter 383, subchapter 2, article 2-B the word 
"microenterprise" appears, it is amended to read "small business" and the Revisor of 
Statutes shall implement this revision when updating, publishing or republishing the 
statutes. 
SUMMARY 
This bill makes the following changes to the laws governing the Maine 
Microenterprise Initiative Fund. 
1.  It changes the name of the Maine Microenterprise Initiative Fund to the Maine 
Small Business Initiative Fund. 
2.  It requires that a community-based organization have a demonstrated ability to 
leverage existing community-based resources and have a plan to promote collaboration 
and connection among entrepreneurs and community resources in order to be eligible to 
receive a grant from the fund. 
3.  It defines "small business" as a business located in the State that produces goods 
or provides services and has 20 or fewer full-time equivalent employees, including, but 
not limited to, contractors and independent consultants, particularly those in trades and 
technology industries; family-owned small businesses whose founders are nearing 
retirement; small businesses undergoing change of ownership; and small businesses 
engaged in agriculture, forestry or fishing. 
4.  It authorizes the Department of Economic and Community Development to award 
a grant from the fund to a community-based organization to aid that organization in 
providing training to small businesses that show a high potential for growth, including 
training to provide them with the network, resources and motivation required to build a 
sustainable business of size and scale.  To be eligible for training, a small business with a 
high potential for growth must have been established for at least 3 years and have annual 
revenue between $200,000 and $5,000,000 per year. 
5.  It requires the department, when making grants from the fund, to give priority to 
applications that target aid to areas with a higher percentage of small businesses with 5 or 
fewer employees and low median household incomes. 
6.  It requires that an applicant for a grant to provide training to small businesses that 
show a high potential for growth must demonstrate a proven ability to increase the growth 
of small business training participants. 
7.  It requires that technical assistance and training must address issues of regulatory 
compliance, personnel training and support, including wages, hours, benefits, health and 
wellness and environmental and safety issues, and other issues that affect performance, 
management and legal obligations of small business owners. 
8.  It requires a community-based organization that receives a grant from the fund to 
provide a 50% match in the form of cash, staff time and overhead expense directly 
attributable to small business training and technical assistance.