BANGOR, Maine–Organizers of a start-up credit union here say they have raised the funds needed to move forward with their state charter.
The Maine Harvest Credit Project said it has raised the $2.4 million they need to get the credit union, which will become the first in the country to lend only to farmers and food entrepreneurs, organizers say. The goal is to boost Maine’s agricultural economy.
“Stronger local food systems are critical for improving environmental, community and personal health,” Co-Founder Scott Budde, who co-founded Maine Harvest in 2016 with Scott May, told the Bangor Daily News. “Our credit union work will be a key part of building that stronger system — one that can be replicated in other regions in America.”
Maine Harvest said it plans to begin staffing by next spring and to hire a specialized loan officer who understands the needs within the agricultural sector. It expects to open as an approved credit union in its headquarters in Unity by June of 2019.
“Our research estimates that there is about a $186 million financing gap among Maine farmers and food producers,” Amanda Beal, president and CEO of Maine Farmland Trust, an organizing group with Maine Harvest, reported the Bangor Daily News. “Bridging that gap will keep farmers on their land, help others scale and grow and generally act as a catalyst for this entire industry.”
24,000 People in Sector
According to Maine Harvest, Maine has more than 8,000 farms that produce $3.8 billion in sales and create 24,000 jobs statewide. The agricultural sector is one of the largest in the state, bringing younger people to Maine. An estimated 40% of farmers are age 34 or younger.
All four of Maine’s U.S. congressional delegates supported Maine Harvest’s desire to be a chartered credit union in a letter to the National Credit Union Administration, the Bangor Daily News reported.
Maine Harvest said the credit union will become part of the Maine Credit Union League and its members will have access to shared branching and ATMs within the league’s statewide network.