BRUNSWICK

A jobs bill signed into law is lauded by its creator as a game changer that will help Maine draw large business to invest in the local economy and create high-paying jobs.

The bill, LD 1480, was enacted March 30 and creates the Maine Capital Fund to essentially operate as a type of mutual fund for business investments and will be capitalized by pension funds, institutional endowments, insurance companies and other types of investment instruments. The program will be administered by the Finance Authority of Maine.

Sen. Stan Gerzofsky, DBrunswick, sponsored the bill and said for companies who want to come to Maine and qualify, they will need to make a $50 million investment that stays in Maine and employ 250 people or retain at least 250 jobs paying a minimum of 125 percent of the average state wage.

“That’s a good pay check, so it’s not minimum wage jobs,” he said.

Despite the divisive environment in the Legislature, Gerzofsky said his bill drew widespread, bipartisan support.

Bill supporter Steve Levesque, executive director of the Midcoast Regional Redevelopment Authority, is already selling the program, according to Gerzofsky.

“I know there’s a couple of national companies that are looking at it,” Gerzofsky said.

While the state does a fairly good job supporting small business, FAME is capped at $5 million, which is not going to capture the large companies that are going to hire hundreds of people and pay good salaries.

“They need to have a little more in their tool bag,” he said.

The program presents a different way of thinking for Mainers, though similar programs exist in other states. It was turned inside out and upside down by the Labor, Commerce, Research and Economic Development committee to make sure it is done right, the senator said. It will attract the kind of businesses to replace some of the older industries in the state that are leaving, like paper mills, with newer industries providing jobs that pay well.

“There is no — zero — taxpayer dollars,” Gerzofsky said.

The state is not investing in businesses but rather, it is businesses investing in businesses. As he looked at how Maine can attract businesses, create capital and compete with other states, he made sure the solution doesn’t fall on the back of the taxpayers. This allows investment funding already being invested in Wall Street, for example, to be invested in Maine.

Some companies that will want to take advantage of this opportunity will have tremendous reputations and some will have a harder time trying to raise the funds. The risk is not on the state or taxpayers either, he said.

Levesque said Thursday the capital program will allow the state to make larger scale investments into new, expanding and retaining business development projects that can create or retain 250 good paying jobs.

To participate, companies must actually be an investor, and 10 percent of what they receive as their debt service goes back into the fund.

“We hope it is another tool to help attract new investments,” Levesque said. “No deals are currently in the works, but it could help several companies grow.”

“This is a game changer,” Gerzofsky said. “This is really doing something about creating real business. Real jobs.”

While Maine does a lot to create small business, “this is the first time we’ve really made a major stab at creating some of these big companies,” he said.

“I don’t want to see big corporations come in and take over my state, and I don’t expect to see that, but I do expect to see two or three come in and make a big difference,” he added.

“It’s going to benefit the state of Maine, but of course it’s going to benefit Brunswick Landing,” Gerzofsky said.

dmoore@timesrecord.com

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