An Act To Promote Downtown Revitalization by Creating the Locating Businesses Downtown Loan Program
Maine Legislature, Session 128, LD 1343
Committee: Labor, Commerce, Research and Economic Development
Sponsors: CHENETTE, FECTEAU, BELLOWS, DESCHAMBAULT, BAILEY, DUNPHY
Amends: 5 MRSA §13056-D, 5 MRSA §13056-H

Legislative Document
No. 1343
S.P. 457
In Senate, April 6, 2017
An Act To Promote Downtown Revitalization by Creating the 
Locating Businesses Downtown Loan Program
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 CHENETTE of York.
Cosponsored by Representative FECTEAU of Biddeford and
Senators: BELLOWS of Kennebec, DESCHAMBAULT of York, Representatives: BAILEY of 
Saco, DUNPHY of Old Town.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §13056-D, sub-§1, as enacted by PL 2009, c. 414, Pt. G, §1 and 
affected by §5, is amended to read: 
1.  Program established; administration.  The Communities for Maine's Future 
Program, referred to in this section as "the program," is established within the department 
to assist and encourage communities to revitalize and to promote community 
development and enhance projects. The department shall administer the program to 
provide funding for the rehabilitation, revitalization and, enhancement and business 
development of downtowns and, village centers and main streets in the State in 
accordance with this section, section 13056-E and section 13056-H. All funds received 
for this program must be deposited into the Communities for Maine's Future Fund 
established in subsection 7. 
Sec. 2.  5 MRSA §13056-D, sub-§7, as enacted by PL 2009, c. 414, Pt. G, §1 and 
affected by §5, is amended to read: 
7.  Communities for Maine's Future Fund created.  The Communities for Maine's 
Future Fund, known as "the fund," is established to provide funding for the rehabilitation, 
revitalization and, enhancement and business development of downtowns and, village 
centers and main streets in the State in accordance with this section, section 13056-E and 
section 13056-H. The fund is a dedicated, nonlapsing fund, and all revenues deposited in 
the fund remain in the fund and must be disbursed in accordance with this section, section 
13056-E and section 13056-H. 
Sec. 3.  5 MRSA §13056-H is enacted to read: 
§13056-H.  Locating Businesses Downtown Loan Program 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Fund" means the Communities for Maine's Future Fund established in section 
13056-D, subsection 7. 
B.  "Loan review panel" means the Locating Businesses Downtown Loan Review 
Panel established in subsection 3. 
C.  "Program" means the Locating Businesses Downtown Loan Program established 
in subsection 2. 
2.  Program established; purposes; forgiveness.  The Locating Businesses 
Downtown Loan Program is established to assist businesses with the expenses of locating 
or relocating a business in a downtown area, village area or along a main street within the 
State.  A business may apply for a loan from the fund, and the proceeds of the loan must 
be used to: 
A.  Acquire, construct, repair, improve or lease real property located within a 
downtown area, village area or along a main street within the State for operation of a 
business; or 
B.  Relocate an existing business operation to a downtown area, village area or along 
a main street within the State. 
Loans under the program may be forgiven if the loan recipient satisfies criteria 
established by the department in rules adopted under subsection 8 that, at a minimum, 
require loan recipients to remain in downtown areas, village areas or along main streets 
for a specified time after receiving the loan. 
3.  Loan review panel.  The Locating Businesses Downtown Loan Review Panel is 
established to evaluate applications from businesses for a loan from the program.  The 
loan review panel consists of: 
A.  The commissioner;  
B.  The president of the Maine Development Foundation or the president’s designee; 
and 
C.  A representative from a statewide organization that advocates for economic 
development that preserves the quality of life in local communities, appointed jointly 
by the President of the Senate and the Speaker of the House. 
4.  Loan application review process.  The loan review panel shall review 
applications for loans from the program in accordance with this subsection. 
A.  The loan review panel shall establish the deadline by which applications must be 
postmarked and received. 
B.  Department staff shall undertake the initial review and preliminary scoring of 
applications. 
C.  The loan review panel shall review the applications submitted and the preliminary 
scoring under paragraph B, select the finalists and allocate funding from the fund. 
In reviewing loan applications, department staff and the loan review panel shall use the 
scoring system and criteria established under subsection 5. 
5.  Loan application scoring system.  The department and the loan review panel 
shall develop criteria and a scoring system for use by the department and the loan review 
panel in evaluating applications for loans from the program.  The criteria must be posted 
on the department's publicly accessible website. 
6.  Loan agreement.  To be eligible for a loan under the program, an officer or 
authorized employee of a business selected as a loan recipient must execute a written loan 
agreement prepared by the department.  The loan agreement must clearly state the terms 
and conditions of disbursement of loan proceeds established by the department in rules 
adopted under subsection 8.  The terms and conditions must include, at a minimum, the 
term and interest rate of the loan, the scheduling of loan repayments and the requirements 
for loan forgiveness. 
7.  Loan repayments.  Principal and interest payments made to the department  
pursuant to a loan agreement under subsection 6 must be deposited in the fund. 
8.  Rules.  The department shall adopt rules to implement this section.  Rules adopted 
pursuant to this section are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
SUMMARY 
This bill establishes the Locating Businesses Downtown Loan Program within the 
Communities for Maine's Future Program to provide forgivable loans for businesses 
seeking to initially locate or to relocate in a downtown area, village area or along a main 
street within the State.  Applications for loans under the program are evaluated by the 
Department of Economic and Community Development in conjunction with a loan 
review panel.  Successful applicants must execute a loan agreement prepared by the 
department specifying the terms and conditions of the loan, including the length of time 
that a business must remain in the downtown area, village area or along a main street 
within the State for the loan to be forgiven.