The Potato Marketing Improvement Fund
The
Potato Marketing Improvement Fund (PMIF) provides financing to potato
growers and packers to construct modern storages, modernize existing
storages, and purchase packing lines as part of the industry’s plan
to improve the quality and marketing of Maine potatoes.
The Potato Marketing Improvement Fund provides long-term, fixed-rate loans at
low interest rates for the construction or improvements to storage and packing
facilities. Funds cannot be used for working capital, refinancing, or non-project
related equipment. PMIF funds may only be used for permanent financing after
a project is completed.
The Potato Marketing Improvement Fund consists of two programs: Storage Retrofit
Fund and the New Facilities Fund. Each program, summarized below,
is tailored to achieve specific industry goals:
| Program
Name |
Storage
Retrofit Fund |
New
Facilities Fund |
| Description |
Loan
proceeds can be used to retrofit existing storages with insulation,
ventilation and other improvements to preserve potato quality and
extend the marketing season. Loan funds may also be used to improve
packing facilities and for the acquisition of packing and handling
equipment. |
Loan
proceeds can be used for improvements, expansions and construction
of storages, as well as purchasing and installing packing lines.
Total project costs must exceed $50,000. |
| Use
of Proceeds |
Real
estate improvements, machinery and equipment |
Building
improvements, construction, or expansion, and purchase and installation
of packing and handling equipment |
| Eligible
Applicants |
Any
grower or entity storing or packing fresh Maine potatoes |
Any
grower or entity storing or packing fresh Maine potatoes |
| Maximum
PMIF Loan Amount |
55%
of total project cost or $27,500, whichever is less |
45%
of total project cost. Individual owners must provide 10% cash
or in-kind equity |
| Interest
Rate |
5%
fixed |
5%
fixed |
| Terms |
Building
retrofit loans: Up to 10 years. Equipment loans: Typically 5-7
years |
Maximum
25 years. Typically new facilities are for terms of 15-20 years |
| Fees |
Borrower
is responsible for all fees associated with closing and documentation
of loans made under the Potato Marketing Improvement Fund Program. |
There
is a one percent origination fee based upon the PMIF portion of
the loan. Borrower is responsible for all fees associated with
closing and documentation of loans made under the Potato Marketing
Improvement Fund Program. |
Application Procedure
The Potato Marketing Improvement Fund Program minimizes
the preparation work required of the applicant and participating lenders.
Program staff is available to provide assistance to applicants on an
individual basis. The applicant’s first step should be to contact
the Potato Marketing Improvement Fund Storage Consultant at the Harley
D. Welch Agricultural Center in Presque Isle. The consultant will discuss
and review the proposal with the applicant, determine program eligibility,
and highlight and detail requirements specific to each project proposal.
Technical
Assistance
The PMIF provides technical assistance to growers and
packers, including site visits and advice regarding system design based
on applicant needs. Representatives acting on behalf of the Potato
Marketing Improvement Fund do not make representations or warranties
about the structural integrity of the work performed by independent contractors
or others involved in the construction of the project. For additional
information, or to request technical assistance, please contact the
Potato Marketing Improvement Fund Storage Consultant at the Harley D.
Welch Agricultural Center in Presque Isle.
For More Information
Individuals
interested in learning more about the Potato Marketing Improvement
Fund Program are encouraged to contact program staff as early as possible
in the project planning process.
Maine Department of Agriculture, Food and Rural Resources
Potato Marketing Improvement Fund
Harley D. Welch Agricultural Center
744 Main Street
Presque Isle, ME 04769
TEL 207-764-2105, or 207-287-3491
FAX 207-764-2035
E-mail stephen.belyea@maine.gov
Finance Authority of Maine
Potato Marketing Improvement Fund
P.O. Box 949
83 Western Avenue
Augusta, ME 04332-0949
TEL 207-623-3263 or 800-228-3734
FAX 623-0095
TTY 207-626-2727
E-mail info@famemaine.com
Web www.famemaine.com
