The Finance Authority of Maine backed $3.6 million in loans for an affiliate of Front Street Shipyard to buy land and build a new boat manufacturing and maintenance facility in Belfast.

The state financing agency provided loan insurance on loans from Androscoggin Bank to Dubba LLC, a real estate holding company, for the work at 101 Front St., which is occupied by Front Street Shipyard.

The shipyard plans to expand its operations by exercising an option to purchase land it currently leases from the city of Belfast, according to a release from FAME. Front Street Shipyard provides new boat construction, restoration and refitting for vessels, including advanced composite construction and classic wooden yachts. The company also offers a marina and storage facility for customers.

The total project is estimated to cost $5.8 million and create 40 new jobs. The shipyard employs 84 people.