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LD 1500

An Act To Establish The Maine Community Development Financial Institution Fund To Support Small Businesses, Rural Economic Development And Affordable Housing

132nd Legislature (2025-2026) Introduced by Aaron Dana and 8 co-sponsors

Establishes the Maine Community Development Financial Institution Fund to provide grants and loans via DECD to support affordable housing, rural development, and small business cap

Became Law without Governor's Signature
#communitydevelopmentfund #economicdevelopment #planning
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Bill Summary · LD 1500

Summary — LD 1500

An Act to Establish the Maine Community Development Financial Institution Fund to Support Small Businesses, Rural Economic Development and Affordable Housing

Purpose

Create a dedicated fund (the Maine Community Development Financial Institution Fund) to increase capital access for underserved borrowers and communities in Maine by providing grants and loans to eligible community development financial institutions (CDFIs), small businesses, housing developers and other eligible enterprises. The fund is administered by the Department of Economic and Community Development (DECD) and is intended to promote housing and community development, rural economic development, capital access and small business support.

Key provisions

  • Establishes the Maine Community Development Financial Institution Fund within DECD to make grants and loans to eligible institutions and enterprises for:
    • Affordable housing development and housing access;
    • Community development projects in rural and underserved areas;
    • Small business capital access and support.
  • Authorizes DECD to administer the program and to use up to 10% of the fund balance for operational and administrative costs.
  • Sets eligibility and program rules for how funds may be awarded (grants vs. loans) — administration and disbursement details to be managed by DECD under the statute.
  • Provides an appropriation/allocation mechanism to permit spending from the new fund (Other Special Revenue Funds).

Fiscal impact (two versions reflected in fiscal notes)

Because the Legislature adopted amendments during passage, two fiscal-note scenarios are documented:

  1. Committee amendment (earlier version):

    • One‑time transfer from the General Fund unappropriated surplus to the new Fund: $500,000 (to be transferred no later than Nov 5, 2025).
    • Additional fiscal effect: depositing up to $10,000,000 annually from the State’s cash pool with CDFIs could reduce interest earnings to the General Fund by about $200,000 per year.
    • Net General Fund impact FY2025‑26: approximately $700,000 (one‑time $500,000 transfer + $200,000 reduced interest); then ~$200,000 annual reduction thereafter.

  2. As amended by the Senate table amendment (final amendment reflected in later fiscal note):

    • The one‑time $500,000 transfer and the $200,000 annual General Fund interest loss were removed.
    • The bill instead establishes an ongoing Other Special Revenue Funds allocation of $500 to the new Fund (authorizing minimal ongoing administrative appropriations).
    • Fiscal effect under this amendment is minimal to the General Fund; the large one‑time transfer and projected interest loss are not enacted in this version.

DECD indicated that using up to 10% of fund monies for administration would be sufficient for program administration and would avoid additional General Fund appropriations under the funded scenario.

Who is affected

  • Direct: CDFIs and other eligible financial intermediaries and enterprises that receive grants or loans from the Fund.
  • Indirect: small businesses, rural economies, affordable housing developers and residents seeking housing or capital access.
  • State agencies: DECD will administer the Fund and oversee awards.

Procedural status / timeline

  • Introduced: April 8, 2025; referred to Committee on Housing and Economic Development.
  • Committee recommended OTP‑AM; Committee Amendment A (H‑446) and Senate Amendment A (S‑477) were adopted.
  • Passed both chambers (final actions June 25, 2025).
  • Status (as of July 8, 2025): HELD BY THE GOVERNOR — the bill is awaiting the governor’s signature or veto.

If enacted, DECD would implement program rules and (depending on the final amendment effect) may receive authorized special revenue allocations to operate the Fund.

Compiled from official sources — confirm details with the bill’s official record.

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