HOULTON – A local economic development group has coupled a $10,000 grant with an equal sum of money from a Wiscasset community development corporation to craft a tool to assist area home-based business owners.

Last December, the Southern Aroostook Development Corp. secured a $10,000 grant from Machias Savings Bank’s Community Development Fund to establish a revolving loan program to benefit home-based businesses. The organization successfully leveraged the funds it received from the bank with a $10,000 allocation from Coastal Enterprises Inc. of Wiscasset to assist an even larger group of businesspeople.

Propelled by Executive Director Jon McLaughlin, SADC is a grass-roots organization that has worked for the past eight years to boost the economic base of the region.

Coastal Enterprises is a private, nonprofit organization that provides financial and technical assistance to people, businesses and communities in Maine.

Unlike other entrepreneurs who set up shop in a downtown store or another location in a business district, home-based business owners sometimes do not meet the criteria that is necessary to secure grants or loans to enhance their businesses.

Under the new $20,000 microloan program, qualified applicants could garner between $2,000 and $5,000 in loan money to better their enterprise.

Specific guidelines for awarding the funding are still being developed, according to McLaughlin.

The executive director said on Monday that he applied for the grant after attending one of several symposiums hosted by the town last summer to reach out to entrepreneurs in Houlton who work out of their homes.

The forums attracted a blend of artists, consultants and budding entrepreneurs who met to share stories, compare business plans and discuss obstacles they have encountered, such as a lack of access to telecommunications equipment and affordable health insurance.

McLaughlin said that several people at the gathering he attended said they could benefit from having access to microloans to finance home-based business needs.

He added that he believes the loan program will further fuel the growth of the creative economy in the southern Aroostook region.

The official unveiling of the program is scheduled to take place next month.