Coastal Enterprises lands $1 million federal loan
Coastal Enterprises' chief executive officer Ronald Phillips expects eight yet-to-be-determined employers to benefit from a job-creation loan the nonprofit is taking out. SUSAN JOHNS/Wiscasset Newspaper
Coastal Enterprises' chief executive officer Ronald Phillips expects eight yet-to-be-determined employers to benefit from a job-creation loan the nonprofit is taking out. SUSAN JOHNS/Wiscasset Newspaper
Coastal Enterprises of Wiscasset is borrowing $1 million to lend to employers who are trying to keep and grow their workforces.
The federal government has agreed to lend the nonprofit the entire amount it asked for, Coastal Enterprises' founder and Chief Executive Officer Ronald Phillips said September 18.
The nonprofit will serve as the middle man between Uncle Sam and those employers, who, by themselves, fall short on the cash flow or other pieces lenders look for in a borrower.
The nonprofits and businesses that borrow the money from Coastal Enterprises can use it as leverage for bank loans, Phillips said.
The U.S. Department of Agriculture's loan award is not a huge surprise: the local nonprofit has a good track record under the job creation program the money's coming from; in fact, Phillips and Coastal Enterprises had a hand in starting that program.
They worked with other New England organizations to get Congress to create it in the 1ate 1980s, Phillips said.
Through the program, Coastal Enterprises has loaned nearly $20 million to 266 employers; that money leveraged at least another $40 million and helped keep or create nearly 10,000 jobs, Phillips said.
The latest loan Coastal Enterprises is taking out should help about eight employers hold onto about 64 jobs and create another 64.
The employers haven't been picked yet. Phillips encourages prospective applicants to call the nonprofit at 207-882-7552.
Nonprofits and businesses can both apply.
Phillips praised the agriculture department for playing an integral role in Maine's economic development.
The $1 million for Coastal Enterprises is among $27 million in loans and grants Agriculture Secretary Tom Vilsack announced September 18. The money is being spread over 32 states and the District of Columbia.
Coastal Enterprises is getting the lion's share among successful Maine applicants. The others, in Houlton, Skowhegan, Orono, Machias and Eastport, all got grants, ranging from $24,000 to $50,000, according to a press release from the agriculture department.
Susan Johns can be reached at 207-844-4633 or susanjohns@wiscassetnewspaper.com
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