An Act to Establish the Maine Community Development Financial
Maine Legislature, Session 132, LD 1500
Committee: Housing and Economic Development
Sponsors: SACHS, DAUGHTRY, FECTEAU
Amends: 5 MRSA §13056-K

Legislative Document
No. 1500
H.P. 984
House of Representatives, April 8, 2025
An Act to Establish the Maine Community Development Financial 
Institution Fund to Support Small Businesses, Rural Economic 
Development and Affordable Housing
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SACHS of Freeport.
Cosponsored by President DAUGHTRY of Cumberland and
Representatives: DANA of the Passamaquoddy Tribe, DUCHARME of Madison, Speaker 
FECTEAU of Biddeford, GERE of Kennebunkport, MALON of Biddeford, ROEDER of 
Bangor, Senators: RENY of Lincoln, STEWART of Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §13056-K is enacted to read:
§13056-K.  Maine Community Development Financial Institution Program
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Community development financial institution" means an institution that, as 
determined by the Secretary of State, is: 
(1) Legally qualified to do business within the State; 
(2) Subject to oversight by applicable federal or state financial institution or 
insurance regulatory agencies, if applicable; and
(3) Certified by the United States Department of the Treasury as a community 
development financial institution. 
B. "Financing" means any combination of loans, grants and forgivable loans. 
C. "Fund" means the Maine Community Development Financial Institution Fund 
established in subsection 2. 
D. "Program" means the Maine Community Development Financial Institution 
Program established in subsection 3. 
E. "Project" means a project funded under the program. 
F. "Underserved community" means a geographic area or targeted population identified 
by the Community Development Financial Institutions Fund at the United States 
Department of the Treasury as a target market for financing from community 
development financial institutions. 
2.  Fund established.  The Maine Community Development Financial Institution Fund 
is established within the department for the purpose of providing funds for the program.  
The fund consists of money transferred to the fund by the Legislature in the form of 
appropriations, which may be provided as grants or loans, or by the Treasurer of State in 
the form of low-cost or no-cost loaned capital, which may be provided as loans. 
The Treasurer of State may deposit an amount not to exceed $10,000,000 in each calendar 
year with community development financial institutions authorized to do business in the 
State at a rate of return not more than 2% per year below the rate of return otherwise 
obtainable had the funds been invested with other financial institutions for a similar term, 
as determined by the Treasurer of State, for periods not to exceed 2 years. 
Other funds may include grants and loans from federal, state and private sources and other 
types of funding from private sources.  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.  The department may dedicate up to 10% of the appropriated and granted 
money in the fund for the administrative and operational costs required to administer and 
manage the program, and any interest earned on money in the fund remains in the fund and 
must be credited to the fund. 
3.  Program established; duties.  The Maine Community Development Financial 
Institution Program is established within the department to provide capital through grants 
and loans to community development financial institutions.  The program must provide 
grants and loans to community development financial institutions for purposes that align 
with the program's goal of promoting housing and economic and community development, 
capital access, housing access and small business support.  Community development 
financial intuitions must deploy the funds in the form of loans, grants and forgivable loans 
to provide financial products to underserved communities in the State.
4.  Rulemaking.  The department shall adopt rules to implement this section. Rules 
must include, but are not limited to, monitoring and accountability mechanisms for 
organizations receiving funding under the program.  Rules adopted pursuant to this 
subsection are routine technical rules as defined in chapter 375, subchapter 2-A.
5.  Reporting.  Beginning January 1, 2026, and biannually thereafter, the department 
shall report to the joint standing committee of the Legislature having jurisdiction over 
economic development matters on such matters regarding the fund as the department 
considers appropriate, including the amount of funding committed to projects from the 
fund, and other items as may be requested by the joint standing committee of the 
Legislature having jurisdiction over economic development matters.  After reviewing the 
report, the committee may report out legislation to implement any recommendations 
contained in the report or address any other issues identified in the report.
Sec. 2.  Transfer from General Fund unappropriated surplus; Department 
of Economic and Community Development, Maine Community Development 
Financial Institution Fund.  Notwithstanding any provision of law to the contrary, on 
or before November 1, 2025, the State Controller shall transfer $500,000 from the 
unappropriated surplus of the General Fund to the Department of Economic and 
Community Development, Maine Community Development Financial Institution Fund 
pursuant to the Maine Revised Statutes, Title 5, section 13056-K, subsection 2 to provide 
payments to fund costs related to eligible projects under the Maine Community 
Development Financial Institution Program pursuant to Title 5, section 13056-K, 
subsection 3. 
Sec. 3.  Appropriations and allocations.  The following appropriations and 
allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Maine Community Development Financial Institution Fund N506
Initiative: Allocates one-time funds for grants and loans to eligible institutions and 
enterprises to promote housing and community development, capital access, housing 
access and small business support.
OTHER SPECIAL REVENUE FUNDS
2025-26
2026-27
All Other
$500,000
$0
__________
__________
OTHER SPECIAL REVENUE FUNDS TOTAL
$500,000
$0
SUMMARY
This bill establishes the Maine Community Development Financial Institution Fund 
and the Maine Community Development Financial Institution Program within the 
Department of Economic and Community Development.  The program will provide loans 
and grants to community development financial institutions to provide financing to 
underserved communities in Maine.  The bill also requires a $500,000 transfer from the 
unappropriated surplus of the General Fund to the fund.