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 (Revised 9.27.2022)

Borrower and Loan Size Requirements:
  • Eligible borrowers must have fewer than 750 employees
  • The MT SSBCI 2.0 LPP is targeting an average loan participation principal amount of $5 million or less
  • 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 Available 1st Tranche: $18,670,873
Approved Loans: $                 0
Available Funds: $18,670,873

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

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


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


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


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


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


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


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


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


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


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


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


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


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


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


sweetgrass-development-logo.pngSweetgrass Development
521 1st Avenue NW
Great Falls, MT 59404
406.727.5173
https://www.sweetgrassdevelopment.org

 

  • 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.

MT SSBCI 2.0 LPP Application: Apply Here

Montana Grant and Loan Portal Login (Okta) Instructions

Montana Grant and Loan Portal Login (Okta) Video Instructions

Carolyn Jones, Loan Section Manager
Phone: 406.841.2594

Herb Kulow, Loan Officer
Phone: 406.841.2751

Danielle Williams, Loan Program Specialist
Phone: 406.841.2737

Email

PO Box 200505
301 South Park Avenue
Helena MT 59620-0505