PORTLAND, Maine (NEWS CENTER) -- A proposal to create a State Bank to further aid Maine business owners is making its way to Augusta.
Representative Diane Russell (D) Portland, is presenting the plan to the Legislature.
The State Bank would be modeled after the Bank of North Dakota which started 90 years ago to aid farmers who were struggling with rising interest rates.
The State Bank would not be competition for Maine's existing financial institutions but would rather work with banks to provide business owners with better access to a line of credit.
Some business owners, including Cheryl Oliver at Back Bay Bicycle in Portland say they've experienced new restrictions to their loans. Oliver's business is seasonal and until recently she says banks were flexible with her payments based on the seasons.
But the President of the Maine Bankers Association, Christopher Pinkham says his group opposes the proposal. He questions if a State Bank is an appropriate use of taxpayer money.
The loan industry, he says, includes a degree of risk and Pinkham is not confidant the State Bank could make the risks needed to get the most return on investment.
A public hearing on the State Bank proposal is slated for May 3rd.
NEWS CENTER