If the response is number 3, the bank will often decide to work with FAME to help provide loan insurance or subordinated debt. Another way that FAME works with small businesses is to help provide funding for early-stage businesses through tax credits and venture capital sources because these companies are not yet ready to work with banks. FAME also works with companies to provide specialized direct-loan programs.

Marketing Angel: How is FAME funded?

Charlie Spies: FAME primarily uses the credit of the State of Maine to provide insurance for loans that are actually funded by banks and other types of finance entities. In some cases, FAME's direct-loan programs are funded by voter-approved bond issues to provide direct loans for specialized loan projects or very high-risk loan projects.

Marketing Angel: What's a recent success story of FAME working with a Maine business?

Charlie Spies: We work with many businesses, both large and small. An example of a recent success story is of a company that needed working capital to fund a large increase in orders. Its lender was not able to meet the immediate need because of the risk it posed. FAME was able to participate with the lender in a way that enabled the company to produce those orders, fulfill its obligation, and grow in the process.

Marketing Angel: What's the venture capital situation in Maine these days?

Charlie Spies: The venture capital situation is certainly better than it was a few years ago. With the crash in the Internet bubble of 1999 and 2000, many people have heard of venture capital funds withdrawing from the markets. In Maine, however, some very positive things are happening. We now have two very successful traditional venture capital funds in Maine (Masthead Venture Partners and North Atlantic Capital Corporation). We also have a very exciting and well-regarded socially responsible venture fund (Coastal Ventures) and a new fund that has been developed through Coastal Enterprises, Inc. (CEI Community Ventures). The latter fund targets opportunities to invest in businesses operating in low-income census tracks. In addition, we have two other venture funds from outside the State of Maine which are now committed to looking at deals in Maine. One is Borealis Ventures from New Hampshire and the other is Brook Venture Partners from Boston. These two funds, as well as Masthead, Coastal Ventures and CEI Community Ventures, have all received commitments from the State of Maine to invest in their funds, with the agreement that they will look at Maine companies and make best efforts to invest in those companies. Beyond these funds, we have the State's own Small Enterprise Growth Fund, a State-sponsored venture fund has been very active since 1997.

In addition, the Maine Technology Institute creates a feeder system for venture capital funds and the newly expanded Maine Seed Capital Tax Credit Program provides private investors with tax credits for investing in early-stage businesses. It is a very exciting time because we have a great toolkit of funding sources for early-stage companies in Maine. As a matter of fact, other states are now copying Maine's example in this area.

Marketing Angel: The FAME annual dinner is coming up on November 18. I've been impressed by the scope of Maine businesses featured at trade show preceding the dinner. Can you tell us a little more about the dinner and who should attend?

Charlie Spies: We are very proud to present the FAME annual dinner each year. This year is our 20th anniversary, and we have something special planned. We have invited Governor Baldacci and the three prior Maine governors to join us at the meeting to talk about their experiences both with FAME and with economic development in Maine. It is a wonderful opportunity to have all four of these governors, who span 24 years in office, to share their experience and their vision for the future. Anyone is invited to the meeting and welcome. The meeting is especially suited for people involved in business and higher education. FAME is the State's business finance agency and also its higher education finance agency. We operate with the knowledge that in today's economy businesses need a well-educated workforce as well as adequate capital. We work very closely with the higher education institutions in Maine and are delighted to partner with them. Our dinner will focus on that nexus between business and higher education.

Kimberly L. McCall (a.k.a. Marketing Angel), is president of McCall Media & Marketing, Inc., a business communications and writing company in Durham, Maine. She's the author of Sell it, Baby! Marketing Angel's 37 Down-to-Earth & Practical How-To's on Marketing, Branding & Sales. McCall writes the monthly Sales Force column for Entrepreneur magazine, and contributes to inc.com, MarketingProfs.com and The Wall Street Journal's StartupJournal.com. To buy her book and sign up for a free e-bulletin visit www.MarketingAngel.com or contact McCall at 207-865-0055.

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