RUMFORD — Finance Authority of Maine is backing part of a $4.1 million loan to build a 63-room Best Western Hotel near Route 2, according to a press release from Tony Carter, president of Pennacook Falls Investments Ltd.

A rendering of the planned Best Western Plus Rumford Falls hotel at 50 Prospect Ave. Submitted photo

Carter said FAME’s board of directors on Feb. 21 approved 75 percent commercial loan insurance on the loan from First National Bank.

“We are grateful for FAME’s assistance with our plans,” according to the press release by Carter and Vice President/Treasurer Andre St. Pierre. “This financing will allow us to construct much-needed lodging in downtown Rumford and hopefully spur additional economic investment in this redeveloping area.”

Pennacook Falls Investments was established by Rumford area business leaders to build a brand-name hotel at the former Puiia Hardware site at 50 Prospect Ave. Groundbreaking is planned this spring.

The project is expected to create about 19 jobs.

The effort to build the hotel has been in the works since Best Western gave its approval in 2016. At that time, the cost of construction was estimated at between $5 million and $6 million. Since then, the investment group has dealt with cleaning up the site and legal and financial hurdles.

FAME board Chairman Jay Violette said, “FAME is pleased to help finance this project that is expected to boost downtown Rumford and meet some of the growing lodging needs of the River Valley area.”

FAME is a quasi-independent state agency that provides financial solutions that help Maine people achieve their business and higher education goals. Its Commercial Loan Insurance Program insures a portion of a loan to a business made by a participating financial institution. For a business, it may mean the difference between obtaining a loan or never getting the opportunity to start a business.

bfarrin@sunmediagroup.net