Code of Maine Rules, Chapter 20, Section 498-20-3 - ECONOMIC DEVELOPMENT | Code of Maine Rules

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides funding to local governments to assist businesses to create or retain jobs for low and moderate-income persons.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) At least 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant must be taken by persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation. The Development Fund is gap financing.

(b) Financing Plan: The DF application shall present a financing plan for a project in which the DF loan comprises the lesser of $200,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(c) Maximum Grant Award: $200,000

(d) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Commitment and the contract between DECD and the local government.

(e) Repayment Terms: Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state's economic development strategy. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Eligible activities: Acquisition, relocation, demolition, clearance, construction, reconstruction, installation, rehabilitation and working capital.

(c) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(d) Financial Plan: The financing for the project must be in place and legally binding commitments must be submitted; the proposal is structured to meet cash flow projections; and the project pro forma must be reviewed by an independent qualified financial professional. The financing plan must be complete with no unidentified uses of funds necessary to complete the project.

(e) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(f) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(g) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to execute security agreements.

(h) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(i) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(1) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(2) Community and Economic Development: The primary and secondary impacts of the DF project on the community's current and future economic development will be evaluated.

4. Approval Process

(a) Application: Applications shall be submitted by the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. DECD or its designee will conduct a credit analysis. The DF Review Committee will then review applications. The Committee will make recommendations to the Director of the Office of Business Development. The DF Committee will consist of staff members of the Finance Authority of Maine and DECD.

(b) DF Committee Recommendations: The DF Committee will review staff reports, credit analysis and make recommendations to the Director for awards. The Committee will recommend one of four options:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for resubmission; or,

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to $300,000 per quarter, plus any unobligated portion of allocations of previous quarters. The Director of OBD can waive this limit. The Director reserves the right to reject any or all applications.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments to be used as leverage to obtain funds from Federal, State and private programs. RAF money can be used as match to obtain funds from: the Economic Development Administration (EDA); Economic Adjustment Assistance Program (Title IX); and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State, and therefore, RAF cannot be used as match with the State's CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive a RAF grant. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) be an eligible planning activity or a project with 51% of the jobs created or retained as a result of RAF expenditures proposed by the applicant are taken by persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds as eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: Provided the RAF application is successful, a contract will be executed between DECD and the local government to reserve funds for the applicant. A Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds.

(b) Limit on Amount of RAF assistance: Each Economic Development District will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the Director of Office of Business Development (OBD). The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(e) Low and Moderate Income Benefit: The primary and secondary impacts of the RAF project on the community's current and future economic development will be evaluated.

(f) Local Commitment/Match: The commitment of local funds to the project. Additional weight will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency (such as EDA) and is working toward a full application, it may submit a RAF application to DECD. DECD staff will review the RAF applications on a first-come first-served basis to determine if the threshold criteria and special program requirements have been met. Successful applicants will be invited to continue to the project development phase. A project development analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OBD for awards:

(i) approval of requested amount with requested or different terms

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate-income persons.

1. Threshold Criteria and Certifications: Micro Loan Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting businesses.

(b) Project Benefit: At a minimum,51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Micro-Loan program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application date. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be withdrawn.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

(e) Micro-Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees that do not close MLP loans to three or more different businesses and do not demonstrate demand for additional eligible loans will return MLP repayments to DECD.

3. Selection Process: The selection process will consist of two phases - an application phase and a project development phase.

Phase I Application: The maximum length of an application is six pages. The application deadline is February 9, 2001.

Each application will be rated in relation to all other Micro-loan applications. A minimum of 80 points from the Problem Statement, Proposed Solution and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (35 points):

Scope of Problem: (35 points) - Description of the economic base and business trend problems of the community and the impact on job opportunities for LMI persons. Description of the need for funds including data on area capital availability and the inability of potential applicants to obtain loans.

(b) Proposed Solution (45 points):

(i) Scope of Solution: (17.5 points) - Description of how funds will be used to solve the identified problems.

(ii) Capacity: (17.5 points) - Description of the capacity of the applicant to market and conduct a Micro-Loan Program. Identify accomplishments in administering loan programs or completing similar responsibilities.

(iii) Potential Loan Applicants: (10 points) - Description of efforts to identify potential loan applicants, who these prospects are, and type of business and capital needs.

(c) Citizen Participation (20 points):

(i) Business Involvement: (10 points) - Description of how the business community participated in the development of the proposed program such as repayment policies, targeted sectors, etc.

(ii) General Citizen Involvement: (10 points) - Description of how the need for, and priority of, a Micro-Loan program was defined by the general citizenry in the application process.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The Economic Development Infrastructure (EDI) Program provides Maine communities with funds to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of business and industry. EDI funds will leverage local and private sector capital to create and retain jobs for low and moderate-income persons, generates taxes and create market place opportunities.

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on an ongoing basis beginning January 4, 2001. The official application acceptance will be the 1st Thursday of each month.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons. Eligibility of projects that are not in support of a specific business, such as the development of an industrial park or incubator building, will be determined on a case-by-case basis by OCD.

(b) Cost per Job: The targeted cost per job created or retained with EDI funds is $10,000.

(c) Project Benefit: At a minimum,51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

(d) Local Match: All communities applying for EDI funds must provide a local match equivalent to 20 percent of the total grant award. This match must be directly related to the EDI infrastructure portion of the project and is in addition to any investment made by the assisted business.

(e) Applicant Surety: If the proposed EDI activity is not in support of a specific business, prior to contracting with OCD, the applicant community must have in place a surety instrument equal to the amount of the EDI grant.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Economic Development Infrastructure Grant Amount: $400,000. In no case will the amount of EDI assistance be greater than 50% of the project cost including EDI, local, and business contributions. Projects involving collaboration among communities may be eligible for grants exceeding the maximum.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under the following limited conditions:

(i) The retail business represents the provision of new products and services previously unavailable in the community or is a tourism-related business;

(ii) The development or expansion of the retail business represents a net economic gain for the community and the region. EDI applications supporting a retail business or businesses are required to certify that the development represents a net overall gain for the regional economy and not a shift from existing established businesses to a new or expanded one; and

(iii) At least 50% of the jobs created by the retail business must be full time jobs.

(d) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Selection Process: The selection process will consist of two phases - a pre- application phase and an application phase.

(a) Pre-Application: Eligible EDI applications must submit a completed pre-application to OCD. Pre-applications will be reviewed by the OCD Review Team to determine if the following threshold criteria are met:

(i) Applicant eligibility

(ii) Consistency with State Economic Development Strategy

(ii) Activities are eligible and comply with national and state CDBG objectives

(iv) No legal actions will significantly effect the project

(v) Financial profile of the applicant community and/developer

(vi) Financial condition of the business or development entity

(vii) Amount of proposed EDI assistance is reasonable

(viii) Match funds meet program requirements

(ix) Assessment of success of the project

(x) Project will not result in relocation of the business from community to another, unless:

(a) the current host community certifies it cannot meet the needs of the business

(b) there is a plan to mitigate the potential for dislocation of the current workforce

If all pre-application requirements are met, OCD will invite the applicant, in writing within 15 working days, into the application phase. A Project Development Specialist will be assigned to work with the applicant. If the pre-application is rejected, the applicant will be notified in writing of the reasons for rejection. Pre-applications may be re-submitted after 30 days of notification.

(b) Application Phase: The applicant must submit a completed application within 120 days from invitation. The OCD Review Team will evaluate the project using the following criteria:

(i) Completeness

(ii) Ability to proceed

(iii) Quality of LMI jobs

(iv) Status of matching funds

(v) Level of risk

(vi) Community benefit

(vii) Reasonableness of EDI assistance

(viii) Citizen participation

(ix) Environmental review

The Review team will complete its review within 15 working days from the date of official application acceptance. The Team will recommend either: 1) Approval; 2) Request further information or documentation; or 3) Denial.

Upon receiving the recommendation from the Review Team, the OCD Director will forward the recommendation to the DECD Commissioner for final action. The Commissioner has the authority to ask for reconsideration by the Review Team. Within five (5) working days of review completion OCD will notify applicants of the status of their application. Applicants approved for funding will begin the process of contracting with OCD. If an application requires further information or documentation, the applicant may re-submit the amended application at any time.

Applications denied by OCD may not be re-submitted prior to 30 working days from notification and only after discussion between the applicant, Project Development Specialist, the OCD Technical Assistance Director or Program Manager.

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides funds to assist businesses to create or retain jobs for low and moderate-income persons. The Business Assistance program will provide either loans, grants or a combination of each to meet the infrastructure, capital equipment and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories;

(b) Project Benefit: At a minimum,51% of the jobs created or retained as a result of BA expenditures must be taken by persons of low and moderate income.

(c) Cost Per Job: The targeted cost per job created or retained with BA funds is $10,000.

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA loan or grant to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance.

(b) Financing Plan: The application shall present a complete financing plan for a project. The financing necessary to support the total project cost must be documented with binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will loan or grant to the business identified in the BA application. The loan or grant must be provided under the terms stated in a Business Assistance Letter of Commitment and the contract between DECD and the local government.

(d) Repayment Terms: Terms must be based on the business' maximum capacity for principle and interest payments as documented in their pro formas and reviewed by DECD or its designee as appropriate to remain profitable.

(e) Maximum Business Assistance Grant Amount: $400,000

(f) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Eligible Activities: Eligible activities to be carried out with BA funds include acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures, capital equipment and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state's economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity as determined by the Director.

(e) BA Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the BA loan and indicates willingness to enter into security agreements.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's current and future economic development will be evaluated.

(k) Community Financial Commitment/Match: The community must demonstrate a vested financial interest in the development project. The program's goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

(a) Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee appointed by the Director of the Office of Business Development.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the Director of OBD for awards.

F. INTERIM FINANCE PROGRAM

The Interim Finance Program (IFP) utilizes funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers in creating housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons,

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households, or

(iii) the IFP expenditures reduce the development costs for new mulit-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households.

(b) Complete the required IFP appication materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project's rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility inmprovements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the IFP, the State wil maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through is Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommed the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

Code of Maine Rules19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENTChapter 20 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 2001 PROGRAM STATEMENTSection 498-20-3 - ECONOMIC DEVELOPMENT

Code of Maine Rules
19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT
Chapter 20 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 2001 PROGRAM STATEMENT
Section 498-20-3 - ECONOMIC DEVELOPMENT