Staff Writer
The Caribou Chamber of Commerce and Industry has announced that there are funds available for small businesses in Caribou. In fact the CCC & I has $850,000 available for dispersal as low-interest loans to Caribou -based businesses. These funds have been made available to the CCC & I through a FAME grant, as well as a loan from the USDA, which is currently in its eighth year of a 30-year turnaround.
Interest rates nationally have gone down dramatically in the past year, and the chamber has dropped its rate as well. Formerly the CCC & I charged interest of 1 percent above the prime rate, this has dropped to 1/2 percent below prime, as of January of this year. At the current rate, this means small business loans through the CCC & I will carry interest of 5.5 percent. This is an excellent rate compared to last year when the same loan would have had an interest rate of 9.25 percent according to Wendy Landes of the CCC & I.
Caribou is the only single service community in the state with money from the USDA. USDA funds are generally given to regions, not municipalities according to Landes.
“It’s a curious and good thing,” said Landes.
FAME funds were applied for and received in 1996, while USDA funds were received in 1999.
“The Caribou Development Commission Board was very aggressive and pro-Caribou in the late 1990s,” said Landes.
In all since that time the funds loaned to local small businesses have totaled $3.9 million through 55 different loans.
“My main goal as a lender is to keep these funds available for future businesses,” said Landes. Therefore although money is loaned with a relatively small interest rate, administrative fees are not charged. This is done in order to aid local business in reducing start-up fees and other related costs.
“We recognize that times are hard and we want to make this as easy as possible for anyone going into small business,” said Landes.
It should be noted that the CCC & I’s policy is to loan no more than $250,000 to any one principal person or business, although each case is handled individually. It should also be noted that a chamber loan may be more lenient in amount given and usage of funds. Funds may be used for start up costs, equipment purchase etc. Also, according to Landes where banks will typically loan up to 75-80 percent of a project’s cost, the CCC & I is capable of loaning up to 90-95 percent of total costs.
“So, we have some money, and we’d be happy to lend it,” said Landes.
For more information visit the Web site at http://www.cariboumaine.net or call Landes at 498-6156.
Contributed photo
Hilltop Motors had a ribbon cutting at their new business in Caribou on Feb. 26 with the Caribou Chamber of Commerce and Industry. Present at the ceremony were, from left, Steve Lunn, CCC& I Board; Corey Millett, auto detailer; Joe Dunn, sales associate; Zack Pike; Charlene and Scott Pike, Hilltop owners; Kevin Houston, CCC&I staff; Jeannie McLaughlin, CCC&I staff; Ken Murchison, Caribou City Council; Craig Staples, CCC&I Board.
