In April, Rising Tide Community Market received exciting news from the Maine Rural Development Authority (MRDA) of an offer for financial backing for the relocation to the former Strong Chevrolet site on Bus. Rt. 1.
Financial support from MRDA, through its Commercial Facilities Development Program, comes in the form of a short term $500,000 loan.
While Rising Tide still has a modest financing gap, the loan substantially improves the project’s overall financing by offering exceptional terms (0 percent for the first two years and 2 percent for the third year).
The Maine Rural Development Authority was created in 2002 to help Maine communities in realizing their economic development goals.
MRDA provides financial assistance to communities and their development partners to help develop and/or redevelop underutilized commercial properties. Its goals are to: Foster job creation; encourage business development in Maine; restore employment opportunities; and, create employment opportunities in areas of economic need.
News of the endorsement from MRDA was met with great enthusiasm by the board and management at Rising Tide.
“We were so happy to see that the folks at MRDA recognized all of the things that Rising Tide is doing to foster community economic development,” said Mark Ward, treasurer of the Rising Tide board.
The successful application highlights the degree to which Rising Tide’s expansion and relocation will promote regional economic development by creating jobs at the new store and expanding opportunities for local farmers and producers to market their products.
Nearly a third of the items sold at Rising Tide are produced locally. In 2008, that translated into about $500,000 of store purchases that went directly back into the pockets of local farmers and producers. The figure is expected to rise significantly in the new store.
The notification from MRDA was the culmination of several months of effort that began in February, when a representative of MRDA visited Rising Tide to tour the existing business, inspect the renovation site, and discuss an application.
After submitting a detailed application, Rising Tide was invited to present the project to the MRDA board. Scott Cooper, co-general manager of Rising Tide, made two visits to the MRDA board, before receiving word of the loan authorization.
“We are grateful to our other lenders, especially the folks at Damariscotta, Bank, & Trust who were flexible enough to allow us to bring in another partner and take advantage of this incredible opportunity,” Scott Cooper said.
The impact of these funds will be felt most directly by significantly improving cash flow for the business during the critical first few years in the new store. In that manner, they go a long way to helping making the expansion/relocation project a success.
The good news of this loan offer is tempered slightly by the remaining challenge that Rising Tide faces to close a modest financing gap as it works to complete building renovations for opening the new store in July.
To learn about the opportunities and benefits of participating financially to help close the remaining gap, stop by the store or contact Mark Ward at 563-2956 or maward@midcoast.com.