LEWISTON, Maine–A group seeking to charter a credit union in this state to serve Maine businesses in the food economy say they are getting closer to making the CU a reality.
Among those working to get the project off the ground is Joel Alex, owner of Blue Ox Malthouse, who told the Lewiston Sun Journal he continues to face challenges with needing more local grain and having farmers who are willing to grow it, but the farmers lack the equipment and storage space. What they need, he said, is between $5,000 and $20,000 to invest.
For that reason and others Alex is backing the Maine Harvest Credit Project, which was planning to file a charter application on Monday. Supporters said they have raised $1.4 million of the $2.4 million capital needed to open. If supporters can raise the rest swiftly, and get regulatory approval, it could be making loans in 2018, Sam May, the advisory board chairman, told the Lewiston Sun Journal.
"The $1 million is really the key here — we can have a charter in six months and be operational within a few months," May told the publication. "(Maine) has an appreciation for what the local food system is. We think Maine has an opportunity to be a leader here."
Fundraising began 18 months ago. The Maine Organic Farmers and Gardeners Association and Maine Farmland Trust are behind the effort, the Sun Journal reported.
May told the publication he anticipates the new statewide credit union would loan $1.5 million the first year for needs including equipment and farm mortgages, growing to $2 million annually in a few years. Interest rates might be between 5% and 7%.