Coastal Enterprises Inc. (CEI), headquartered in Wiscasset, has been selected to receive a Rural Development IRP loan in the amount of $750,000. Funds will be used to provide low-interest loans to public and non-profit organizations to re-lend for business and community development. This investment is anticipated to save or create 72 jobs and assist 12 businesses.
Ron Phillips, president of CEI, said, “We are very excited about this loan. Over the years, the IRP program has been one of the core Rural Development financing resources supporting
job-generating small and medium-sized business enterprises in Maine.”
Phillips said CEI was among the national organizations that originally conceived of the program in the late 1980s. Since then, CEI has borrowed and re-loaned some $15 million to over 220 Maine businesses, each employing an average of 30 people. According to Phillips, there has been considerable participation by Maine’s community and national banks in support of these aspiring entrepreneurs, who are among Maine’s greatest resource for the sustainability of the state’s social and economic fabric.
Intermediary Relending Program funds are awarded to community-based development or regional planning groups that then re-lend the money to local businesses. The loans must be used to create or retain jobs by starting or expanding businesses.
Funding of each recipient is contingent upon the borrower meeting the conditions of the loan or grant agreement. These funds are not from the American Recovery and Reinvestment Act.
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s website at www.rurdev.usda.gov/me.