The Legislature finds that one of the limiting factors on the beneficial economic development of the State is the limited availability of capital for the long-term needs of
Maine businesses and entrepreneurs. In particular, the lack of equity capital to finance new business ventures and the expansion or recapitalization of existing businesses is critical. This lack of equity capital may prevent worthwhile businesses from being established; it may also force businesses to use debt capital where equity capital would be more appropriate. This creates debt service demands which a new or expanding venture may not be able to meet successfully, causing the venture to fail because of the lack of availability of the appropriate kind of capital.
..This impediment to the development and expansion of viable Maine businesses affects all the people of Maine adversely and is one factor resulting in existing conditions of unemployment, underemployment, low per capital income and resource underutilization. By restraining economic development, it sustains burdensome pressures on State Government to provide services to those citizens who are unable to provide for themselves.
..To help correct this situation, it is appropriate to use the profit motive of private investors to achieve additional economic development in the State. This can be accomplished by establishing an investment corporation to provide equity capital for Maine businesses and by establishing limited tax credits for investors in the corporation to encourage the formation and use of private capital for the critical public purpose of maintaining and strengthening the state's economy.
What is true for the upper crust of the economy is true for every sector of the economy but the ensuing economic policies developed by the state targeted “quality jobs” defined by the Legislature as jobs providing higher than average incomes and benefits. The upper crust of the economy was favored over the remainder of the economy which was burdened with tax payer subsidizing the top. The Legislature’s policies developed specific terms and conditions for its targeted sector, while the remainder of the economy was left to subsidize the top while operating under standard capitalization terms, deemed to be a hardship in The Governor’s Task Force report of 1976
§15302. Maine Technology Institute 2 Purpose The institute, through a public and private partnership, shall encourage, promote, stimulate and support research and development activity leading to the commercialization of new products and services in the State's technology-intensive industrial sectors to enhance the competitive position of those sectors and increase the likelihood that one or more of the sectors will support clusters of industrial activity and to create new jobs for Maine people. The institute is one element of the State's economic development strategy and will contribute to the long-term development of a state wide research, development and product deployment infrastructure. [ 1999, c. 401, Pt. AAA, §3 (NEW).]Maine Made Products is a state program and does not have the corporate non-profit status to function as a fiscal sponsor, and yet all Maine makers developing products for the market, involve technology. All Maine companies developing products are consistent with the non-profit purpose of MTI.
It is standard practice for a fiscal sponsor to charge a management fee for its services. The project being sponsored does its own fundraising. Adding fiscal sponsorship to the functions of the Maine Technology Institute would not add an additional burden on the taxpayers, unlike the current function of the charity- providing matching funds to private enterprises. However, it would make capitalization without debt burdens.as identified in The Governor’s Task Force report of 1976, available to a broad spectrum of the economy.