Master Logger Loan benefit in Maine

Are you a Master Logger in Maine who is buying new equipment? Take advantage of the Direct Link Loan Program and get an interest rate reduction of up to 2% on qualifying equipment. Details of the program and how you can take advantage of it are below:

1. A Master Logger signs an Agreement with the Maine Forest Service (MFS), the bank submits Agreement to MFS, and it is approved by the MFS for the purchase of a new or new to them piece of qualifying equipment. (Cut to Length Harvesters and Forwarders, Tracked Feller Bunchers, Stroke Delimbers, Mulching Machines, Road Graders; also includes retrofitting of existing equipment like Flotation tires, Bogey wheels, harvester and processor heads; and Miscellaneous purchases like Metal and Wooden Bridges, Bottomless arches, and sediment and erosion control products) Purchases are considered on a case by case basis, with eligibility based on whether the equipment facilitates the implementation of Best Management Practices.

*Equipment that is not eligible: Grapple skidders, PullThru Delimbers, Tree-to-Tree Feller Bunchers.

2. The Master Logger gets a loan from a participating bank. (See list below) Example: Loan is for $500,000 at current bank interest rate (ex. 7.00%). Contractor can have multiple loans but can’t exceed the $800,000 aggregate limit allowed by the program.

3. The Master Logger is given an interest rate subsidy (reduction) of 1.50% (up to 2%) – the same amount as the *CD rate for as long as they continue to qualify for the program. Example: 7.00% loan interest rate less 1.50% rate subsidy = 5.50 effective rate.

The following banks participate in the direct link loan program.

* Katahdin Trust Company - David Cambridge

* Farm Credit East- Shannon Webber

* Machias Savings Bank- Dean Clark

*Note: Maine Municipal Bond Bank buys a $500,000 CD for up to five years from bank for up to 2.00% less than the bank’s going CD rate matching the term of the loan. Ex. 1.50 % - (up to 2%)

For more information, visit www.maine.gov and search for the Direct Link Loan Program.