MaineBusiness.com

December 23, 2008
FOR IMMEDIATE RELEASE
CONTACT: BILL NORBERT
(207) 620-3540
(207) 242-1236 (cell)

FAME BOARD APPROVES ICE STORM, LOBSTERMEN ASSISTANCE; AUTHORIZES IMPORTANT AGREEMENTS WITH MAINE HEALTH ACCESS FOUNDATION AND DELTA DENTAL PLAN OF MAINE

AUGUSTA — The Board of Directors of the Finance Authority of Maine (FAME) recently approved assistance to Maine businesses affected by the recent ice storm and lobstermen grappling with federal regulations regarding fishing line replacement. The Board also authorized an agreement between FAME and the Maine Health Access Foundation to implement a loan fund for certain primary care practices to promote the adoption of electronic medical records systems, as well as an agreement between FAME and Delta Dental Plan of Maine that provides additional funding for dental loan repayment.

The Board approved modifications to FAME’s Economic Recovery Loan and Commercial Loan Insurance Programs to assist Maine businesses negatively affected by the recent ice storm.

FAME found that substantial public benefit will result from providing assistance to Maine-based businesses located in areas of the state designated as disaster areas by the Governor that have been directly affected by last week’s ice storm. FAME will make modifications to the usual terms of its Economic Recovery Loan Program. Specifically, the interest rate will be lowered to the Wall Street Journal prime rate (currently 3.25%), rather than the usual rate of Wall Street Journal prime plus 2%.

FAME’s Commercial Loan Insurance Program also was modified by the Board to allow the current OnLine Answer (OLA) Program, which provides a maximum of 60% pro-rata insurance with a maximum FAME aggregate exposure limited to $250,000, to now allow up to a maximum of 75% pro-rata insurance, with a maximum FAME exposure limited to $75,000, for all loans to eligible businesses located in the Governor-designated disaster areas that have suffered direct damage from the ice storm. Additionally, the usual 1% initial insurance fee has been reduced to ½%. The term of these loans will be restricted to a maximum of six months. These policy modifications will only be in effect for eligible loan and loan insurance applications received by January 31, 2009.

The Board further approved an extension of FAME’s lobster line replacement program, which provides loans and commercial loan insurance to Maine lobstermen to comply with federal regulations requiring the replacement of floating trap lines with sinking lines by April 2009. The program, which was set to expire December 31, 2008, will be extended until April 30, 2009. Banks providing loans to affected lobstermen for line replacement purposes will be able to obtain a maximum of 75% (as opposed to the usual 60%) commercial pro-rata insurance under FAME’s OLA Program. The interest rate for economic recovery loans for this purpose will remain lowered from prime plus 2% to prime, as well.

“FAME is pleased to offer support at this critical time to Maine businesses negatively affected by the ice storm and to Maine lobstermen already struggling with adverse market conditions,” stated Kelly Matzen, Chair of the FAME Board of Directors.

In another development, FAME will partner with the Maine Health Access Foundation (MeHAF) to administer a new low-interest loan fund that will promote the adoption of electronic medical record systems in eligible primary care medical practices.

Dr. Wendy Wolf, President and CEO of MeHAF, commented: “MeHAF’s strategic partnership with FAME will expand the use of health information technology, which, over time, will result in better medical care, improved patient safety and reduced health care costs. When vital patient information is readily available, physicians and nurses make better patient care decisions and avoid duplication of tests and procedures. This is particularly important for those Mainers who do not receive regular health care services, such as those who are uninsured or lack ready access to primary care. ”

This new program supports MeHAF's mission to promote affordable and timely access to comprehensive, quality health care, and improve the health of every Maine resident. As the state's largest health care foundation, MeHAF supports solutions to Maine's health care needs through grants and other programs, particularly targeting those who are uninsured and medically underserved. For more information on MeHAF, please visit http://www.mehaf.org

Finally, the FAME Board authorized the agency to enter into an agreement with Delta Dental Plan of Maine to increase access to oral health care for Maine citizens while providing debt relief to eligible dental practitioners. Delta Dental Plan of Maine will contribute up to $160,000 to be administered by FAME to enhance the goals of the existing Maine Dental Loan and Loan Repayment Programs. The programs currently provide funding for up to three awards annually (with a maximum aggregate of twelve), with any combination of renewable $20,000 annual loans to dental students or renewable $20,000 annual loan repayment awards to dentists in eligible Maine practices. The funding for these two programs comes from the Fund for a Healthy Maine, which was established with proceeds from the tobacco settlement.
The additional funds provided by Delta Dental Plan of Maine will enable FAME to offer an additional $40,000 per year for four years to fund two loan repayment awards annually (each in the amount of $20,000, for a total of $160,000) to eligible dental practitioners to assist in the repayment of education loans incurred in dental school.

“Delta Dental Plan of Maine looks forward to partnering with FAME to improve oral health care in Maine by helping to increase the number of dentists in our rural communities,” noted Kathleen B. Walker, APR, Director of External Affairs for Northeast Delta Dental.

Delta Dental Plan of Maine is a Maine not-for-profit corporation providing dental insurance coverage and dental claims administration statewide and whose mission includes increasing access to oral health providers in underserved areas of Maine. For more information on Delta Dental Plan of Maine, please visit www.nedelta.com

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine people and businesses pursue educational and business opportunities. To learn more about FAME or any of the above programs, please visit www.famemaine.com.

###