July 18, 2017
CEI Closes First Loan Using USDA Community Facilities Relending Program
Maine’s Central Lincoln County YMCA Expands to Reach Growing Community Needs
July 18, 2017 (Brunswick, ME) – Coastal Enterprises, Inc. (CEI) announced today the closing of the first loan using financing from the USDA’s Community Facilities Relending Program, with up to $100 million guaranteed by Bank of America. The $2,460,000 loan to Central Lincoln County (CLC) YMCA, a landmark community center in the midcoast region, will allow for the renovation and expansion of its existing facility, originally built in 1973.
“Financially, this loan enabled the Y to bridge the gap between final costs of construction and the amount of funds raised in the capital campaign. We rolled in existing debt to arrive at the total amount, meeting our fundraising goal,” said Dennis Anderson, President of the Board of Directors, CLC YMCA. “This has given us a huge leap forward to be a more inclusive community center while meeting the needs of smaller organizations in the community.”
In October 2016, the USDA and Bank of America announced a relending program to provide long-term, low-cost financing for community lenders working in impoverished rural and Native American communities. The Uplift America Community Facilities Relending Program will facilitate the construction of schools, health care centers, child care facilities and other much-needed services in communities with limited infrastructure development capacity and persistent poverty. The community lenders will borrow from the USDA’s Community Facilities Program, with the first five years of payments to the USDA guaranteed by Bank of America.
The USDA provided CEI a $20 million loan under a competitive application process, with a guarantee from Bank of America. CEI will loan the capital to organizations that are strengthening rural and low-income communities in Maine and other states.
The CLC YMCA has been a community hub for decades, offering exercise and workout facilities, after school and summer childcare, and summer camp programs to meet the needs of the 10 town, 25-mile service area in the mid-coast region. Approximately 10 percent of year-round residents are members. A fundraising campaign kicked off about three years ago bringing in over $5.4 million for facility renovations.
With renovations currently underway, upgrades to the facility include an expansion from 51,000 to 68,000 square feet, a new fitness center, teaching kitchen and communal space, an elevator, elevated running track, and welcome center. The facility will also become home to Spectrum Generations.
“Vibrant rural communities need more than individual businesses to thrive,” said Betsy Biemann, CEI’s chief executive officer. “They also need community resources that contribute to quality of life and help to retain and attract families and entrepreneurs. Community facilities like the YMCA serve an important role in bringing people together to offer services and recreation.”
“CEI has a long and distinguished history of supporting Maine communities,” said Bill Williamson, Maine State President, Bank of America. “We’re proud to partner with CEI, once again, to provide much needed capital for high impact community projects like the Central Lincoln County YMCA.”
The terms of the closing last week provide for an up-front construction loan from CEI that will be replaced by USDA funds upon the completion of construction.
About CLC YMCA – The CLC YMCA is a key collaborative leader improving the quality of life for all by being the champion for youth development, healthy living and social responsibility.
About USDA Rural Development – Since 2009, USDA Rural Development (@USDARD) has funded nearly 9,200 community facilities such as schools, public safety and health care facilities; invested nearly $13 billion to start or expand nearly 112,000 rural businesses; helped 1.1 million rural residents buy homes; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. USDA also has invested $31.3 billion in 963 electric projects that have financed more than 185,000 miles of transmission and distribution lines serving 4.6 million rural residents. For more information, visit www.usda.gov/results.
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