HOULTON, Maine — Individuals looking to open a new business, or current business owners hoping to expand, will have an opportunity to compete for a $35,000 forgivable loan thanks to a new program offered by the town.
The Town of Houlton and the Southern Aroostook Development Corporation have teamed up with several area organizations and business leaders to develop an entrepreneurship program with the hopes of stimulating the economy.
“Last year, we were sitting around a table discussing what we could do to try to help new businesses get started,” explained Jon McLaughlin, executive director for SADC.
Nancy Ketch, the town’s community/economic development director, said she learned of a similar program that took place elsewhere in Maine.
“We started working on this about nine months ago,” Ketch explained. “Both Skowhegan and Biddeford did programs with $10,000 forgivable loans, but we wanted an amount that was really going to be impactful for any business starting up.”
Machias Savings Bank is one of the major sponsors, agreeing to cover half of the loan amount.
“I was really pleased when Nancy approached us,” said Chris Fitzpatrick of Machias Savings Bank. “We are only as strong as our economic community.”
The successful applicant will receive a $25,000 forgivable loan, and an additional $10,000 in products and services, such as legal assistance, web design and advertising.
The goals of the initiative are as follows:
– To develop an innovative approach to business recruitment and to enhance the business mix in the Town of Houlton.
– To encourage businesses interested in expanding or opening a new location to consider the Town of Houlton.
– To provide entrepreneurial businesses a head-start during the toughest year of business operation … the first year.
– To provide guidance and financial support during the critical first years of market entry so that the business can build a lasting footprint in Houlton.
– To strengthen the Houlton economy by complementing the existing business mix while addressing critical gaps in the economy’s sustainability.
– To transform underutilized or vacant commercial spaces into more vibrant and attractive locations.
– To build a “buzz” and promote Houlton as a great place to start a business.
“Any entrepreneur with a new business idea or an existing business with a new idea to add a twist to their business,” Ketch explained. “Or it could be a business from outside the area that wants to come and have a presence in Houlton.”
The program does not officially begin until Sept. 1. Candidates must fill out an application form and complete three phases with the final phase resulting in the selection of one business that will receive multiple benefits to aid in the start or expansion of their business. Other participants may be eligible for some benefits as made possible by donated services by the business community.
Ketch added while the town would love to see new business growth in the downtown, the program was not limited to just that area. The only requirement is the business must be located within the town limits.
Those who enter the contest must attend several seminars, including topics like starting a business and how to write a successful business plan. To receive 100 percent of the forgivable loan offered through Machias Savings Bank, the business must remain open for five years; employ at least one person and remain in Houlton. Any business that does not meet those requirements must pay back the loan.
“We may only have one winner, but we’re hoping several new businesses may arise from this program,” Ketch said. “Everyone seems very excited this program and we felt it would be a unique way to attract some new businesses to the community.”
