A Maine bank and a nonprofit community development corporation are teaming up to offer $9.5 million in low-interest loans to businesses, with the goal of stimulating the state's economy during the recession.

Through a first-in-the-nation partnership, Coastal Enterprises Inc. and Bangor Savings Bank are making $9.5 million available to small and medium-sized enterprises in Maine. This arrangement will help serve as a stimulus to Maine's struggling economy, especially in low-income areas, and provide small businesses access to more favorable credit, the partners say.

For the first time in Maine, loans through the federal New Markets Tax Credit program are now available for less than $2 million, and offer lower interest rates on a 25-year loan. Bangor Savings is the first bank in the nation to both invest in the tax credits and commit to underwriting the loans in this type of funding pool.

The announcement, both CEI and Bangor Savings say, is a reflection of both organizations' commitment to strengthen Maine's economy by investing in communities where jobs and business growth are necessary.

Borrowers can be businesses, nonprofit organizations, corporations, partnerships or individuals located in an economically distressed census tract. Eligible areas are determined by the U.S. Treasury Department.

In Maine, eligible census tracts are located primarily in the rural rim counties -- Washington, Aroostook, Piscataquis, Franklin, Somerset and Oxford. Eligible tracts are also found in downtown Portland, Lewiston, Auburn and Bangor, as well as downtown areas of smaller communities such as Westbrook, Sanford, Biddeford, Bridgton, Augusta, Waterville, Rockland and Old Town. Maine's Native American reservations are also considered eligible census tracts.

Loans could be available to renovate an old mill building, for instance, which might then attract new business to a downtown area. Other possibilities might include the development of a community health clinic; day-care center; a boat yard looking to broaden its services; or any small business looking to purchase a building and equipment to expand.

For more information, interested parties should contact any loan officer at CEI, www.ceimaine.org, or Bangor Savings Bank, www.bangor.com

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