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Page 1 - 132LR1523(07)
STATE OF MAINE
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IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
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H.P. 984 - L.D. 1500
An Act to Establish the Maine Community Development Financial
Institution Fund to Support Small Businesses, Rural Economic Development
and Affordable Housing
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §135, as amended by PL 2021, c. 231, §1, is further amended by
enacting after the 7th paragraph a new paragraph to read:
The Treasurer of State may deposit, if funds are available, an amount not to exceed
$10,000,000 in each calendar year with community development financial institutions
authorized to do business in the State at a rate of return not more than 2% per year below
the rate of return otherwise obtainable had the funds been invested with other financial
institutions for a similar term, as determined by the Treasurer of State, for periods not to
exceed 2 years. For the purposes of this paragraph, "community development financial
institution" has the same meaning as in section 13056-K, subsection 1, paragraph A.
Sec. 2. 5 MRSA §13056-K is enacted to read:
§13056-K. Maine Community Development Financial Institution Program
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Community development financial institution" means an institution that, as
determined by the Secretary of State, is:
(1) Legally qualified to do business within the State;
(2) Subject to oversight by applicable federal or state financial institution or
insurance regulatory agencies, if applicable; and
(3) Certified by the United States Department of the Treasury as a community
development financial institution.
B. "Financing" means any combination of loans, grants and forgivable loans.
C. "Fund" means the Maine Community Development Financial Institution Fund
established in subsection 2.
LAW WITHOUT
GOVERNOR'S
SIGNATURE
JANUARY 11, 2026
CHAPTER
502
PUBLIC LAW
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D. "Program" means the Maine Community Development Financial Institution
Program established in subsection 3.
E. "Project" means a project funded under the program.
F. "Underserved community" means a geographic area or targeted population identified
by the Community Development Financial Institutions Fund at the United States
Department of the Treasury as a target market for financing from community
development financial institutions.
2. Fund established. The Maine Community Development Financial Institution Fund
is established within the department for the purpose of providing funds for the program.
The fund consists of money transferred to the fund by the Legislature in the form of
appropriations, which may be provided as grants or loans, or by the Treasurer of State in
the form of low-cost or no-cost loaned capital, which may be provided as loans.
Other funds may include grants and loans from federal, state and private sources and other
types of funding from private sources. The fund is a dedicated nonlapsing fund, and all
revenues deposited in the fund remain in the fund and must be disbursed in accordance
with this section. The department may dedicate up to 10% of the appropriated and granted
money in the fund for the administrative and operational costs required to administer and
manage the program, and any interest earned on money in the fund remains in the fund and
must be credited to the fund.
3. Program established; duties. The Maine Community Development Financial
Institution Program is established within the department to provide capital through grants
and loans to community development financial institutions. The program must provide
grants and loans to community development financial institutions for purposes that align
with the program's goal of promoting housing and economic and community development,
capital access, housing access and small business support. Community development
financial intuitions must deploy the funds in the form of loans, grants and forgivable loans
to provide financial products to underserved communities in the State.
4. Rulemaking. The department shall adopt rules to implement this section. Rules
must include, but are not limited to, monitoring and accountability mechanisms for
organizations receiving funding under the program. Rules adopted pursuant to this
subsection are routine technical rules as defined in chapter 375, subchapter 2-A.
5. Reporting. Beginning January 1, 2026, and biannually thereafter, the department
shall report to the joint standing committee of the Legislature having jurisdiction over
economic development matters on such matters regarding the fund as the department
considers appropriate, including the amount of funding committed to projects from the
fund, and other items as may be requested by the joint standing committee of the
Legislature having jurisdiction over economic development matters. After reviewing the
report, the committee may report out legislation to implement any recommendations
contained in the report or address any other issues identified in the report.
Sec. 3. Appropriations and allocations. The following appropriations and
allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Maine Community Development Financial Institution Fund N506
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Initiative: Allocates ongoing funds for grants and loans to eligible institutions and
enterprises to promote housing and community development, capital access, housing
access and small business support.
OTHER SPECIAL REVENUE FUNDS 2025-26 2026-27
All Other $500 $500
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OTHER SPECIAL REVENUE FUNDS TOTAL $500 $500