An Act to Provide Reduced Interest Rates for Logging and Fishing
Maine Legislature, Session 132, LD 1733
Committee: Housing and Economic Development
Sponsors: BENNETT, RIELLY
Amends: 10 MRSA §1023-Q

Legislative Document
No. 1733
S.P. 679
In Senate, April 22, 2025
An Act to Provide Reduced Interest Rates for Logging and Fishing 
Operations
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BENNETT of Oxford.
Cosponsored by Representative RIELLY of Westbrook and
Senators: BERNARD of Aroostook, HICKMAN of Kennebec, Representatives: 
COLLAMORE of Pittsfield, DAIGLE of Fort Kent, FAULKINGHAM of Winter Harbor, 
OSHER of Orono, PLUECKER of Warren, WADSWORTH of Hiram.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §1023-Q is enacted to read:
§1023-Q.  Improvements to Logging and Fishing Enterprises Loan Program
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Fishing enterprise" means any enterprise directly or indirectly concerned with the 
commercial harvest of wild or aquacultured marine organisms whose primary source 
of income is derived from such harvesting. "Fishing enterprise" includes licensed 
persons who fish commercially, aquaculturists and cooperatives for persons who fish 
commercially.
B. "Fund" means the Improvements to Logging and Fishing Enterprises Loan Fund.
C. "Logging enterprise" means a person who qualifies as an independent contractor 
under Title 26, section 1043, subsection 11, paragraph E and who is engaged in 
harvesting or hauling trees from forest land for a forest landowner.
2.  Program authorized.  In accordance with this section, the authority shall establish 
and oversee the Improvements to Logging and Fishing Enterprises Loan Program to 
increase the availability of capital by financing loans to a logging enterprise or fishing 
enterprise.
3.  Improvements to Logging and Fishing Enterprises Loan Fund.  The 
Improvements to Logging and Fishing Enterprises Loan Fund is established. Deposits to 
the fund must be made to and maintained by the authority. Any money credited to the fund 
from the issuance of bonds on behalf of the State may be used to finance loans only to an 
eligible logging enterprise or fishing enterprise for the purposes set forth in subsection 4. 
Repayment of these loans and interest on these loans must be credited to the fund.  Interest 
earned on money in the fund and interest earned on loans made from the fund may be used 
to pay the administrative costs of processing loan applications and servicing and 
administering the fund and loans. 
4.  Purposes of loans. A loan under this section may be made only for the following 
purposes:
A. To provide assistance to an existing logging enterprise or fishing enterprise in this 
State for the purchase of capital equipment used in commercial harvesting;
B. For the purchase of new or used equipment used in commercial harvesting in 
connection with an existing logging enterprise or fishing enterprise;
C. For refinancing existing loans used to finance eligible uses as described in this 
subsection; or
D. If the authority approves at the time of loan insurance commitment, to pledge money 
in the fund as security for, and to apply money in the fund to, payment of principal, 
interest and other amounts due on any term loans insured by the authority to an eligible 
logging enterprise or fishing enterprise.
5. Conditions.  Logging enterprise and fishing enterprise loans are subject to the 
following conditions.
A.  A loan for any project under this section, the total cost of which exceeds $200,000, 
may not exceed 90% of the total cost of the project.  A loan from the fund may not be 
provided for such a project unless the applicant demonstrates a commitment of private 
funds of at least 5% of the total cost of the project; except that, in order to encourage 
the undertaking of cooperative projects by 2 or more logging enterprises or fishing 
enterprises, a loan may not be provided unless the cooperating logging enterprises or 
fishing enterprises as a group demonstrate a commitment of private funds of at least 
5% of the total cost of the project.
B.  A loan for any project under this section, the total cost of which is $200,000 or less, 
may not exceed 90% of the total cost of the project.
C.  A loan must be at the interest rate established pursuant to subsection 6.
6.  Interest rate. The interest rate for loans under this section is the federal prime rate 
on the date of loan commitment but may not be greater than 2%. A loan current on the 
effective date of this subsection may be refinanced at the borrower's request to an interest 
rate of the federal prime rate but not greater than 2%.
7.  Administrative costs.  The authority may charge the fund for its reasonable 
administrative costs, not to exceed 1% annually of the fund balance, for administration of 
the fund.
8.  Report.  The authority shall submit an annual report on or before March 1st to the 
joint standing committees of the Legislature having jurisdiction over logging and fishing 
enterprise matters.  The report must include a summary of loans made under this section 
during the previous fiscal year and loans outstanding categorized by the types of enterprises 
receiving the loans.  The report must address the effectiveness of the program.  
Effectiveness measures may include, but are not limited to, evaluation of the number of 
logging enterprises or fishing enterprises retained, expanded or created; the increase in the 
number of jobs created or retained; any increased business revenues and new capital raised; 
improved wages paid to employees; and any new capital investment and increase in 
profitability.
9.  Rules.  The authority may adopt rules as necessary to implement this section. Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A.
SUMMARY
This bill establishes the Improvements to Logging and Fishing Enterprises Loan 
Program within the Finance Authority of Maine to increase the availability of capital by 
financing loans to logging and fishing enterprises in this State. The interest rate for loans 
made under the program may not exceed 2%.