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132nd MAINE LEGISLATURE
FIRST SPECIAL SESSION-2025
Legislative Document No. 1500H.P. 984 House of Representatives, April 8, 2025
An Act to Establish the Maine Community Development Financial
Institution Fund to Support Small Businesses, Rural Economic
Development and Affordable Housing
Reference to the Committee on Housing and Economic Development suggested and
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SACHS of Freeport.
Cosponsored by President DAUGHTRY of Cumberland and
Representatives: DANA of the Passamaquoddy Tribe, DUCHARME of Madison, Speaker
FECTEAU of Biddeford, GERE of Kennebunkport, MALON of Biddeford, ROEDER of
Bangor, Senators: RENY of Lincoln, STEWART of Aroostook. Page 1 - 132LR1523(01)
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2 is enacted to read:
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4 As used in this section, unless the context otherwise indicates, the
5 following terms have the following meanings.
6 A. "Community development financial institution" means an institution that, as
7 determined by the Secretary of State, is:
8 (1) Legally qualified to do business within the State;
9 (2) Subject to oversight by applicable federal or state financial institution or
10 insurance regulatory agencies, if applicable; and
11 (3) Certified by the United States Department of the Treasury as a community
12 development financial institution.
13 B. "Financing" means any combination of loans, grants and forgivable loans.
14 C. "Fund" means the Maine Community Development Financial Institution Fund
15 established in subsection 2.
16 D. "Program" means the Maine Community Development Financial Institution
17 Program established in subsection 3.
18 E. "Project" means a project funded under the program.
19 F. "Underserved community" means a geographic area or targeted population identified
20 by the Community Development Financial Institutions Fund at the United States
21 Department of the Treasury as a target market for financing from community
22 development financial institutions.
23 The Maine Community Development Financial Institution Fund
24 is established within the department for the purpose of providing funds for the program.
25 The fund consists of money transferred to the fund by the Legislature in the form of
26 appropriations, which may be provided as grants or loans, or by the Treasurer of State in
27 the form of low-cost or no-cost loaned capital, which may be provided as loans.
28 The Treasurer of State may deposit an amount not to exceed $10,000,000 in each calendar
29 year with community development financial institutions authorized to do business in the
30 State at a rate of return not more than 2% per year below the rate of return otherwise
31 obtainable had the funds been invested with other financial institutions for a similar term,
32 as determined by the Treasurer of State, for periods not to exceed 2 years.
33 Other funds may include grants and loans from federal, state and private sources and other
34 types of funding from private sources. The fund is a dedicated nonlapsing fund, and all
35 revenues deposited in the fund remain in the fund and must be disbursed in accordance
36 with this section. The department may dedicate up to 10% of the appropriated and granted
37 money in the fund for the administrative and operational costs required to administer and
38 manage the program, and any interest earned on money in the fund remains in the fund and
39 must be credited to the fund.
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41 Institution Program is established within the department to provide capital through grants Page 2 - 132LR1523(01)
42 and loans to community development financial institutions. The program must provide
43 grants and loans to community development financial institutions for purposes that align
44 with the program's goal of promoting housing and economic and community development,
45 capital access, housing access and small business support. Community development
46 financial intuitions must deploy the funds in the form of loans, grants and forgivable loans
47 to provide financial products to underserved communities in the State.
7 The department shall adopt rules to implement this section. Rules
8 must include, but are not limited to, monitoring and accountability mechanisms for
9 organizations receiving funding under the program. Rules adopted pursuant to this
10 subsection are routine technical rules as defined in chapter 375, subchapter 2-A.
11 Beginning January 1, 2026, and biannually thereafter, the department
12 shall report to the joint standing committee of the Legislature having jurisdiction over
13 economic development matters on such matters regarding the fund as the department
14 considers appropriate, including the amount of funding committed to projects from the
15 fund, and other items as may be requested by the joint standing committee of the
16 Legislature having jurisdiction over economic development matters. After reviewing the
17 report, the committee may report out legislation to implement any recommendations
18 contained in the report or address any other issues identified in the report.
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21 Notwithstanding any provision of law to the contrary, on
22 or before November 1, 2025, the State Controller shall transfer $500,000 from the
23 unappropriated surplus of the General Fund to the Department of Economic and
24 Community Development, Maine Community Development Financial Institution Fund
25 pursuant to the Maine Revised Statutes, Title 5, section 13056-K, subsection 2 to provide
26 payments to fund costs related to eligible projects under the Maine Community
27 Development Financial Institution Program pursuant to Title 5, section 13056-K,
28 subsection 3.
29 The following appropriations and
30 allocations are made.
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33 Initiative: Allocates one-time funds for grants and loans to eligible institutions and
34 enterprises to promote housing and community development, capital access, housing
35 access and small business support.
OTHER SPECIAL REVENUE FUNDS
2025-26 2026-27All Other $500,000 $0
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OTHER SPECIAL REVENUE FUNDS TOTAL
$500,000 $0
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37 This bill establishes the Maine Community Development Financial Institution Fund
38 and the Maine Community Development Financial Institution Program within the
39 Department of Economic and Community Development. The program will provide loans
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40 and grants to community development financial institutions to provide financing to
41 underserved communities in Maine. The bill also requires a $500,000 transfer from the
42 unappropriated surplus of the General Fund to the fund.
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