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By Diana Bowley of the News Staff - AUGUSTA - This season likely will be remembered as the winter without winter. For businesses that counted on the fluffy, white snow to transform the landscape into a winter recreation wonderland, this season was a flop. No snow, no business. "We've all taken such a beating financially," Suzie Hockmeyer, co-owner of Northern Outdoors in The Forks, said Thursday. "Not only did we not have any customers, the guests that we had prebooked, we had to give back their money," the four-seasons resort owner said. To help Hockmeyer, her partner Russell Walters, and other business owners affected by the snow drought, Gov. John Baldacci announced Thursday that the Finance Authority of Maine will offer one-year economic recovery loans of up to $75,000 at an interest rate of 5.5 percent, 2 percent below the prime rate. "I think it's a very good start," Jim Batey, Somerset County's economic development director, said Thursday about the low-interest loan. FAME's offer is a direct result of work that he, Mark Scarano, Piscataquis County's economic development director, and Bob Meyers, president of the Maine State Snowmobile Association, have been doing with about 32 businesses in Somerset County, the Moosehead Lake region and the Katahdin region who requested assistance, Batey said. Some of those businesses joined the trio Tuesday at a statehouse caucus to push for some assistance. Batey said the 32 businesses recorded a loss of about $1 million this winter and had to lay off an equivalent of about 120 full-time positions. He said there may be other businesses that also have suffered this winter from the lack of snow but have not yet reached out for help. "When businesses from Greenville and Millinocket asked for help, I asked FAME to step to the plate with new tools," Baldacci said in a prepared press release. "I appreciate FAME's leadership responding quickly to the needs of small business and tourism in rural Maine. Let there be no doubt that Maine's tourism industry is strong, and thanks to FAME we will make it even stronger." John Witherspoon, FAME's chief executive officer, said Thursday the one-year program will give borrowers time to work with FAME and their own financial institutions to develop longer-range solutions. Eligible businesses must demonstrate a direct impact from this season's unusually low snowfall levels. For Hockmeyer, the loan program is welcome news, although she is unsure if she and her partner will take advantage of FAME's offer or make other financial arrangements. The resort owners estimated they lost about $200,000 in income and said they had to close the resort for 10 days for lack of snow. "We're definitely going to need a cash flow loan to ease us through," Hockmeyer said. She said the business is going into the next season with no cash flow, nothing for improvements and advertising. Bob Doughty of Greenville, owner of Big Lake Equipment, said he has no plans yet to apply for the loan but admitted it was a tough season. "It's been a bad year, and we're down probably 75 percent on sales," he said Thursday. Doughty said he hoped to recoup his losses without taking out a loan, which may be difficult since he has 39 new snowmobiles left for sale. While he said he is thankful that FAME offered such a great interest rate for the loans, Batey wonders if the short loan period may prevent some business owners from applying. "I guess we just have to wait and see if the term is going to be OK with the businesses, if it is going to provide them the relief they need," Batey said. Those interested in learning more about the low-interest loans should call 800-228-3734 or visit
www.famemaine.com. |