Governor Janet Mills announced that 224 Maine forestry companies, the vast majority of them with ten employees or less, will receive a total of $6 million in initial grants from the Forest Recovery Initiative of her Maine Jobs & Recovery Plan.
The grant awards, which are administered by the Maine Technology Institute, will support Maine’s forest products industry and the people it employs and create and sustain jobs in rural Maine.
The awards will largely support rural logging and trucking firms adversely affected by the COVID-19 pandemic. Of the 224 companies awarded grants, 83 percent have ten employees or fewer, and 80 percent are located in Aroostook, Penobscot, Somerset, Oxford, or Piscataquis counties. The average award is approximately $27,000. Awards are expected to be delivered in April.
Governor Mills announced the $20 million Forest Recovery Initiative grant program through her Maine Jobs & Recovery Plan in November. The Initiative provides financial relief to forest products industry businesses that have experienced negative impacts from the COVID-19 pandemic to help them sustain the viability of their business.
“Our forest products industry is a cornerstone of our economy and the lifeblood of rural communities across Maine, employing tens of thousands of hardworking folks who make their living from our forests, just like generations before them,” said Governor Janet Mills.
“I want to make sure that our forest products industry, and the jobs it provides, remains strong for generations to come. These grants are a direct investment in that goal, in our forest products sector, and in rural Maine, helping sustain these vital businesses and jobs.”
These first grants from the Forestry Recovery Initiative program will help provide direct funding to cover payroll costs and expenses; rent or mortgage payments for business facilities; utility payments; purchase of personal protective equipment required by the business; business-related equipment; investments that strengthen the business’s ability to mitigate pandemic-related market disruptions; expenses incurred to replenish inventory or other necessary reopening expenses; and necessary operating expenses.
The Governor and MTI will also start another round of grants through the program this spring. These subsequent grants will aim to improve market opportunities for Maine timber, which has suffered serious declines due to market disruptions from the pandemic, as well as support forward-looking forestry projects that address new market demands, provide new sustainable products, or otherwise advance the long-term stability of the forestry industry.
Funds may also support infrastructure upgrades that strengthen the supply chain and help businesses pivot to new products and markets.
This next round of grants will have $4 million in funds available. The remaining $10 million of the total $20 million for the Forest Recovery Initiative will be awarded in future phases starting later this year. ■
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