By Timothy Churchill,Staff Writer

PARIS – A micro-loan program for entrepreneurs to keep and create jobs in the Oxford Hills region is well under way.

The Colonial Coffee Shop and Quality Paving, both in Norway, and Valley View Orchard Pies in Hebron have been approved for a total of $55,000 in loans since April, according to Terry Stevens, the development project manager for the Office of Community Development in Augusta.

The cornerstone of the micro-loan program is $100,000 in federal Community Development Block Grant money, distributed by the state’s Office of Community Development, according to Bill Shinners, vice president of Western Maine Finance in Norway.

Western Maine collaborates with the Growth Council of Oxford Hills and three other affiliated groups to promote development and economic opportunity in the region

Peter Tonge, the new owner of Colonial, said he received $15,000 through the program to supplement loans he received from commercial lenders.

“It came in very handy indeed,” Tonge said.

Quality Paving owner Jerry Cox called the micro-loan program “excellent,” and said he used the money he borrowed “for maintenance and start-up costs for the spring.”

Jim Kroitzsh, who owns Valley View with his wife, Jean, said he had worked with Western Maine several years ago to borrow money to set up retail space at Portland’s Public Market. Valley View closed shop in Portland in December, Kroitzsh said, and part of the loan he was awarded recently will go toward making the transition to an entirely wholesale operation. Kroitzsh said the loan “fills in the gaps your commercial bank can’t do. It’s very important to us.”

The town of Paris agreed last year to apply for and administer the $100,000 fund on behalf of all eight towns eligible to receive money from it: Paris, West Paris, Oxford, Norway, Otisfield, Waterford, Harrison and Hebron.

Shinners said that as businesses pay back their loans the money will go into a revolving account, which will continue to benefit future borrowers.

The role of Western Maine Finance is to “sponsor” small business owners and entrepreneurs seeking loans, Shinners said, determining whether they are eligible for the money and, if so, writing their applications that will be reviewed by the Office of Community Development.

Shinners said business people who plan to “create or retain jobs for low to moderate income people” can apply for the money.

Tonge said Colonial, which he hopes to have open for business by the end of this week, will employ one full-time and eight part-time workers.

Jean Kroitzsh said Valley View employs 14 full-time and between three and six seasonal employees.

Cox said he employs a total of six full-time workers from April to November.