Northern Maine Development Commission receives $500,000 loan from USDA

10 years ago

    CARIBOU, Maine — USDA Rural Development acting under Secretary Doug O’Brien recently announced the selection of 85 utilities and development organizations for loans and grants to support rural business activities that will boost economic growth in rural communities, including Aroostook County.
“These USDA investments capitalize rural small businesses, which allows the owners to expand operations, enter into new markets and increase hiring,” O’Brien said. “The investments we are announcing today include financing to development organizations for micro-lending to very small rural businesses.  Funds are also being provided to utilities to pass on to local businesses for development projects. These innovative programs increase economic opportunities in rural areas — a top priority of Secretary Vilsack and President Obama.”
USDA Rural Development State Director Virginia Manuel said, “These USDA Rural Development funds will have a significant impact on business and economic development in nine Maine counties, as well as a substantial impact on business development and job creation and retention in Maine. Through re-lending of these critical funds, a total of 68 Maine small businesses will be assisted and 165 jobs will be created or retained throughout our state.”
In Maine, two economic development organizations will receive funding through the Rural Microentrepreneur Assistance Program (RMAP);
Northern Maine Development Commission has been selected to receive an RMAP loan in the amount of $500,000 to impact businesses in Aroostook and Washington counties, and the Penobscot County towns of Mount Chase, Patten, Staceyville, and three unorganized townships, and nineteen unorganized townships in Piscataquis County. The plan is for funds to assist 18 businesses and create 45 jobs.
The plan for the $500,000 to NMDC, which will be administered by the Business Finance Division, is for funds to assist microenterprises in the previously mentioned areas, and according to Manuel will not only create new jobs, but also help retain a number of existing jobs.
“I’m really pleased we could help Aroostook County with this RMAP loan,” said Manuel. “The USDA has loaned a lot of money to county organizations in the past few years for things like health clinics and business programs, and we’ve had a great deal of success administering those loans through intermediary organizations like NMDC.”
Under RMAP, USDA provides loans to Microenterprise Development Organizations (MDOs) that, in turn, make microloans for business start-up or development to eligible small businesses with 10 or fewer employees. Grants are available for MDOs to provide technical assistance and training, particularly in rural areas experiencing persistent poverty or significant outward migration. USDA does not directly provide funds to the ultimate recipients.
Manuel added that she is originally from Aroostook County, where she still owns a farm in the town of Littleton. She explained that being from the area and raising a family in The County makes this program even more special to her.
“Having lived in Aroostook County and still owning a farm there, makes the area special to me, and I’m really pleased and excited that we’ve been able to invest into the area for so many years,” said Manuel. “I  also hope we can continue to aid small businesses throughout rural areas like these for many years to come.
Manuel explained that the largest amount of money that can be loaned to a particular microenterprise will be $50,000. She added that most of these small businesses aren’t borrowing anywhere near that much, but no matter how much a business needs, Manuel explains that the USDA is now and will be happy to help in the future.
“What I hope will come out of this program is further support for microenterprises and small businesses in the area,” said Manuel. “Maine is largely a state made up of small businesses and microenterprises, and we really feel it’s important to support those entrepreneurs.”
To learn more about the RMAP funds and other sources of capital, NMDC and the Maine Small Business Development Centers are hosting an accessing capital workshop Thursday, Oct. 16, from 9 a.m. to 11:30 a.m. at the NMDC boardroom in Caribou.
For more information or to RSVP, contact Mary Dahlgren at 498-8736 or by email at mdahlgren@nmdc.org.