BANGOR, Maine — U.S. Department of Agriculture Rural Development’s Rural Business Cooperative Service Administrator J.R. Claeys recently announced $115.2 million across eight states through the Timber Production and Expansion Guaranteed Loan Program (TPEP), to ensure sawmills and other wood processing facilities have the necessary funding to establish, reopen, expand, or improve their operations. In Maine, Maine Plywood USA, LLC, in Bingham, is receiving $11.9 million through a loan guarantee.

John Butera, state director, USDA Rural Development Maine said “This investment reflects the USDA’s and Trump administration's commitment to investing in our natural resource industries in rural America. In Maine, the forest products industry has a long tradition of strengthening our local economies. This support for a Maine timber business is anticipated to create economic prosperity and jobs in rural Maine.”

This Rural Development investment will be used to provide long-term financing to Maine Plywood USA LLC, for construction, renovation, equipment purchase, refinancing debt, inventory and working capital costs associated with converting an existing sawmill and wood manufacturing facility into a plywood underlayment facility in Bingham. The facility is anticipated to produce 2.5 million sheets of plywood underlayment in the first full year of stabilized operations. This funding, which includes two loans of $5,900,000 and $6,000,000 through the Timber Production and Expansion Guaranteed Loan Program, will be supplemented with owner and investor equity of $2,200,568. This project is anticipated to create 95 new jobs.

“The value of National Forest Systems lands is demonstrated by providing various forest products, such as timber, lumber, paper, bioenergy, and other wood products,” said U.S. Forest Service Chief Tom Schultz. “The American forest products industry is critical to maintaining the health of the nation's forests. The Timber Production and Expansion Guaranteed Loan Program is one of many ways the Forest Service partners with the timber industry to maintain rural jobs, processing facilities, and an outlet for wood that needs to be removed from national forests.”

The Timber Production Expansion Guaranteed Loan Program is made possible by a partnership between the USDA Rural Development and US Forest Service. The program helps address the wildfire crisis by investing in local sawmills that clear out dangerous fuel in our forestlands, helping to remove the most immediate threats to communities, critical infrastructure, and natural resources. This program is available to qualified lenders whose loan applicants want to establish, reopen, expand, or improve a sawmill or other wood processing facility that processes ecosystem restoration byproducts from USDA Forest Service National Forest System lands.

To see a full list of products receiving funding, visit rd.usda.gov.