Montana State Small Business Credit Initiative 2.0 Loan Participation Program (MT SSBCI 2.0 LPP)

The American Rescue Plan Act of 2021 (ARPA) reauthorized and amended the Small Business Jobs Acts of 2010 (SBJA) to provide $10 billion to fund the State Small Business Credit Initiative (SSBCI) as a response to the economic effects of the COVID-19 pandemic. SSBCI is a federal program administered by the Department of the Treasury that was created to strengthen state programs that support private financing to small businesses. SSBCI is expected to create billions of dollars in lending and investments to small businesses that are not getting the support they need to expand and create jobs.

The MT SSBCI 2.0 LPP will be used to assist existing Montana businesses that need additional borrowings to stabilize, pivot, expand, or re-start their business and to assist new Montana businesses entering the market. The MT SSBCI 2.0 LPP will partner with approved economic development organizations throughout the state to identify businesses in their regions that could benefit from the program. The program is structured to participate directly in a lender loan at a participation rate of 50%. MT SSBCI 2.0 LPP participation will occur via a participating lender.

Program Partners

Participating lenders are organizations that are Certified Development Financial Institutions or local economic development organizations with a revolving loan fund (CDFI/RLFs) that are approved to participate in the MT SSBCI 2.0 LPP. Approved CDFI/RLFs must execute an MT SSBCI 2.0 LPP CDFI/RLF Loan Servicing Agreement and adhere to the terms and conditions contained therein. Please contact program staff to become an approved participating lender.

Primary lenders are approved lenders, such as banks or credit unions that must execute an MT SSBCI 2.0 LLP Lender Loan Servicing Agreement and adhere to the terms and conditions contained therein. Please contact program staff to become an approved primary lender.

Loans eligible for MT SSBCI 2.0 LPP participation include, but are not limited to, real estate, equipment, working capital, and non-speculative new businesses.

MT SSBCI 2.0 LPP Policy

MT SSBCI 2.0 LPP Policy (Revised 10.11.2022)

Borrower and Loan Size Requirements:

Eligible borrowers must have fewer than 750 employees
The MT SSBCI 2.0 LPP maximum participation amount is $1 million
If the Primary and Participating Lenders feel a project warrants a participation amount of more than $1 million, it can be presented to program staff Agency Management for consideration. It must demonstrate revenue growth, an employment base increase, and a positive market share impact
The MT SSBCI 2.0 LPP will not provide credit if a given transaction exceeds $20 million

Interest Rates

Up to 3-year term with monthly payments – 50 basis points (0.50%)
3-year up to 5-year term with monthly payments – 100 basis points (1.00%)
5-year up to 7-year term with monthly payments – 150 basis points (1.50%)
7-year up to 10-year term with monthly payments – 200 basis points (2.00%)
10-year up to 15-year term with monthly payments – 250 basis points (2.50%)
15-year to 20-year term with monthly payments – 300 basis points (3.00%)
Any intermediate term amortization will be at the next tier higher interest rate
If amortization other than monthly, the MT SSBCI 2.0 LPP Interest Rate will be increased by 50 basis points (0.50%)
Lender service fee cannot exceed 50 basis points (0.50%)
The servicing CDFI/RLF will be assessed an annualized 25 basis points (0.25%) service fee by MT SSBCI 2.0 LPP. The fee will be assessed on the calendar quarter on the balances of all outstanding loans.

Funding Availability


Funding Available 1st Tranche:	$18,670,873
Approved Loans:	$ 18,670,873
Available Funds:	$ 0

List of Participating CDFI/RLFs

The following are approved Participating Lenders (CDFI/RLFs):

Anaconda Local Development Corporation
118 East 7th Street
Anaconda, MT 59711
406.563.5538
https://anacondadevelopment.org

Bear Paw Development Corporation
300 2nd Ave
P.O. Box 170
Havre, MT 59501
406.265.9226
https://www.bearpaw.org

Beartooth Resource Conservation & Development
128 So Main St.
PO Box 180
Joliet, MT 59041
406.962.3914
https://www.beartooth.org

Big Sky Economic Development
201 N. Broadway
Billings, MT 59101
406.256.6871
https://bigskyeconomicdevelopment.org

Butte Local Development Corporation
65 East Broadway Street 5th floor
Butte MT, 59701
406.723.4349
https://www.bldc.net

Eastern Plains Economic Development Corporation
PO Box 321
Baker, MT 59313
406.853.6471
https://www.epedc.com

Great Falls Development Authority
405 3rd Street NW, Suite 203
Great Falls, MT 59404
406.564.0957
https://growgreatfallsmontana.org

Great Northern Development Corporation
233 Cascade Street
Wolf Point, MT 59201
406.653.2590
https://www.gndc.org

Headwaters RC&D
65 East Broadway Street 5th Floor
Butte, MT 59701
406.723.4349
https://www.headwatersrcd.org

Lake County Community Development Corporation
dba Mission West Community Development Partners
407 Main Street SW
P.O. Box 128
Ronan, MT 59864-0128
406.676.5901
https://www.missionwestcdp.org

Montana Business Assistance Connection, Inc.
225 Cruse Avenue, Suite D
Helena, MT 59601-5011
406.447.1510
https://www.mbac.biz

MoFi
229 E Main Street
Missoula, MT 59802
406.728.9234
https://www.mofi.org

Montana West Economic Development
44 2nd Avenue West
Kalispell, MT 59901
406.257.7711
https://dobusinessinmontana.com

Prospera Business Network
865 Technology Blvd, Suite A
Bozeman, MT 59718
406.587.3113
https://www.prosperabusinessnetwork.org

Ravalli County Economic Development Authority
274 Old Corvallis Road, Suite A
Hamilton, MT 59840
406.375.9416
https://rceda.org

Snowy Mountain Development Corporation
507 West Main Street
Lewistown, MT 59457
406.535.2591
https://www.snowymountaindevelopment.com

Southeastern Montana Development Corporation
6200 Main Street
Colstrip, MT 59323
406.748.2990
https://www.semdc.org

Sweetgrass Development
521 1st Avenue NW
Great Falls, MT 59404
406.727.5173
https://www.sweetgrassdevelopment.org

Application Process

Businesses will contact their local lender or CDFI/RLF
Primary lenders partner with an approved CDFI/RLF to participate in the program
Approved CDFI/RLFs submit an MT SSBCI 2.0 LPP application to the program, along with the required documentation

The following program flowchart outlines how the program is designed to work: MT SSBCI 2.0 LPP Flowchart

Upon application submission, MT SSBCI 2.0 LPP program staff will forward a pdf version of the complete application form to the Primary Lender and the Borrower along with required Application Certifications to be signed by the appropriate parties and returned to the program. The application will then be reviewed and if approved, a Commitment Letter will be issued and sent to the CDFI/RLF outlining the loan’s terms and conditions. The CDFI/RLF will then collect all required signatures and submit the signed Commitment Letter to the program for the loan funding process to continue.

Thanks to the efforts of the local CDFI/RLFs and the participating Montana Lenders, Montana's first allocation of SSBCI money, has been allocated or committed in record time. As a result, the Montana SSBCI will no longer be accepting applications until our second allocation has been received.

Montana Grant and Loan Portal Login (Okta) Instructions

Montana Grant and Loan Portal Login (Okta) Video Instructions

Forms

Participating Lender (CDFI/RLF) Required Forms:

Primary Lender Required Forms:

Borrower Required Forms:

Guarantor Required Forms:

Loan Supporting Documentation:

Treasury SSBCI Reference Documents: