Areas Served: Statewide Montana
The Montana Board of Investments is attached to the Department of Commerce.
The Board does not lend directly to businesses.
The business finance programs discussed below are accessed through banks and approved lending institutions.
Businesses should first contact and work through their local bank(s).
MBOI programs typically enable businesses to access lower, fixed rate financing for viable bank-approved projects.
The business infrastructure program is included here because it provides a substantial potential benefit to eligible businesses and local governments for projects requiring large investments in infrastructure.
Although the Board is prohibited by law from making direct loans to businesses or individuals and requires participation of an approved commercial financial institution, Board staff is very interested and willing to work with businesses to assist in developing a loan package to best meet their business needs.
Listed below are some of the programs offered.
Infrastructure Loan Program
¢ Loans to local government for infrastructure improvement used by basic-sector businesses.
¢ Business for which infrastructure is provided must create at least 15 full-time jobs.
¢ Loan sized at number of jobs times $16,666-minimum loan size $250, 000.
¢ Business pays local government use fee, which is assigned to Board for loan repayment.
¢ Use fee can be totally credited against Montana income taxes paid by business.
The infrastructure improvements are essentially a grant to the business as a direct reduction of project development costs.
Value-Added Business Loan
¢ Maximum 15-year loan term.
¢ 10-14 jobs created/retained qualifies for a loan rate at 4% for 5 years.
¢ 15 jobs created/retained qualifies for a loan rate at 2% for five years.
¢ Interest rate will be at the posted interest rate until the required jobs are created/retained.
¢ Interest rate set at lowest rate for 1st 5 years, 6% for 2nd 5 years the Board posted rate at the time of application for the remaining term.
¢ Jobs created/retained must be by a business adding value to material/products.
¢ Board participates with lender in 75% of the funding, risk, collateral, and other security.
¢ Minimum loan size $250,000-maximum loan size approximately $7.5 million.
¢Full credit review using Board underwriting policy.
Business Loan Participation Program
¢ Fixed-rate financing up to 25-years with interest rates posted weekly
¢ Job creation credits may reduce posted interest rate up to 2.5%.
¢ Full credit review using Board underwriting policy.
Guaranteed Loan Purchase Program
¢ Fixed-rate financing up to 30-years with interest rates posted weekly.
¢ Board purchases 100% of the guaranteed portion of the loan.
¢ Job creation credits may reduce posted interest rate up to 2.5%.
¢ No detailed credit review by Board
Contact InformationMontana Board of Investments
Address: 2401 Colonial Drive, 3rd Floor
City: Helena
State: Montana
Website:
http://www.investmentmt.com/LoanPrograms/default.mcpx
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