A $100,000 revolving loan fund is being established at Northern Maine Development Commission to assist small businesses in northern and eastern Maine.

NMDC

United States Department of Agriculture Rural Development recently awarded $70,000 to the organization, to be matched with $30,000, to create a new pool of capital for entrepreneurs.

NMDC will also utilize its business development and counseling services to provide assistance to borrowers.

“As funding requests come in, applicants without a business plan or cashflow projections will be directed to Small Business Development Center Director Josh Nadeau for help with the completion of a business plan with cashflow projections,” said NMDC Executive Director Robert Clark. “Development of the business plan and cashflow projections typically only take a week or two weeks from the clients first meeting with the SBDC Director. Clients who already have the business plan and cashflow projections or who have them completed, will then meet with one of the loan officers who will use prudent lending practices to assist the borrowers with the rest of the application process and completion of a credit presentation.”

The goal of the business finance division at NMDC is to create new jobs, retain existing jobs, and promote economic development for northern Maine. Staff members work with businesses, local banks, state and federal agencies, and other public and private funding sources to assist businesses with their financial needs.

NMDC currently operates 22 separate loan funds totaling approximately $12 million and administers nine separate loans funds for four communities totaling approximately $2.6 million. The repayment of the Rural Business Development Grant loans will be used as match for additional state and federal investments in NMDC’s loan pools.

In the past year, NMDC has provided loans totaling more than $1,684,000, resulting in 24 jobs created and 148 retained.

For more information on loan options at NMDC, contact Julie Corey at 493-5767 or by email at jcorey@nmdc.org.