MADAWASKA, Maine — Madawaska officials plan to kick off a business acceleration program later this year that will support northern Maine entrepreneurs with educational and financial assistance.
The plan comes during renewed economic development in the town, which is renovating its mid-town plaza and also raised a quarter million dollars in a telethon for the initial phase of renovations to its bicentennial park.
The program, dubbed the St. John Valley Business Acceleration Program, is part of a broader, multiyear effort by the town to boost business development across the greater St. John Valley area, Madawaska Economic Development Director Kristen Henry said.
“More broadly, it aligns with our goal of positioning Madawaska and the Greater St. John Valley as a hub for cross-border economic activity, and ensuring our local businesses are equipped to take advantage of those opportunities,” Henry said.
The town has been planning a business incubator and makerspace since 2018 with the creation of its “Grand Plan.” Now, with congressionally directed spending funding approved to help build the plaza space, the effort focuses on programming at that site, Henry said.
The International Business Development Center will be built at the town’s mid-town plaza on Main Street at a now vacant Subway building.
The project will serve businesses throughout the St. John Valley. Henry said the project has already seen strong support from towns and organizations including Fort Fairfield, Frenchville, Edmundston’s Economic Development Office, the Maine International Trade Center, and both the chambers of commerce in the St. John Valley.
Officials applied for a $370,225 grant through the Northern Border Regional Commission last Friday, and Henry told Select Board members earlier this week that the grant will help create programming at the business development center.
“The feedback from the NBRC state liaison was very positive on the program, and we feel very positive about that moving forward,” Henry said.
The total three-year project will cost $494,325. The town indicated in its application that the remaining $124,100 would be made up through a combination of local and private matches.
From the grant funding, $250,000 will fund the Capital Access Program, which the town wrote will provide up to $20,000 per business for property improvements like facade rehabilitation, ADA compliance upgrades, fire suppression systems, code compliance improvements, energy efficiency retrofits, and permanently affixed equipment.
Additional costs will support personnel costs, including $78,000 for a program administrator which would cover the entire three years. This position is essential to ensure that the program complies with federal requirements.
Businesses will need to provide a 20% investment. The town plans to support approximately 12 businesses to stimulate its economy.
All existing or new businesses that want to receive assistance through the program will need to complete a business acceleration class in order to be eligible for the funding. This curriculum touches on management of finances, regulatory and code compliance readiness, capital planning and workforce development.
The training will also focus on Madawaska’s unique location along the Canadian border and include sessions about exports, customs, supply chain navigation and international commerce.
In the town’s project proposal, it cites that it is an economically distressed community in Aroostook County – a region that has also been designated as economically distressed. In making this statement, the town cites American Community Survey data which indicates that Madawaska’s median household income is $42,700. This is well below the state’s median household income, which according to the U.S. Census Bureau is $74,733.
Because of this, town officials cited the need to increase job opportunities and stimulate the local economy through this project.
Some additional anticipated outcomes of the project include permanent upgrades to roughly a dozen commercial properties and creating between 20 and 30 jobs.
“At its core, this program is about helping businesses move from idea to action, whether that’s starting up, stabilizing, or scaling,” Henry said. “In a rural region like ours, having access to coordinated support and expertise can make a significant difference in whether a business is able to move forward.”
