Board of Investments INTERCAP Program

The INTERCAP Program is a low cost, variable-rate Program that lends money to Montana local governments for financing or refinancing the acquisition and installation of equipment or personal and real property and infrastructure improvements. The Program is administered by the Board of Investments (BOI) Bond Program Office. The BOI issues tax-exempt bonds and loans the proceeds to eligible borrowers. In addition to long-term financing, INTERCAP is an excellent source for interim financing.

Applicant Eligibility

Political subdivisions of state or local governments

  • including cities/towns
  • counties, school districts
  • water and sewer districts
  • solid waste districts
  • special and rural improvement districts
  • fire districts
  • fire service areas
  • state agencies
  • university system

Project Eligibility

Real property improvements. Water, wastewater, and solid waste projects. Preliminary engineering and grant writing work. Interim financing for construction or cash-flow loans. New and used equipment of all kinds. New and used vehicles of all kinds. Energy retrofit projects. 100% financing acceptable, equity or matching money not required.

Funding Requirements

  • Variable rate loan program
  • Interest rate changes each February 16
  • No up-front costs
  • Maximum loan amount per project depends on borrower’s legal debt authority
  • Loan term - 10 years or useful life of the project, whichever is less
  • Interest and principal payments due semi-annually on each February 15 and August 15
  • Prepayment without penalty
  • Rates and charges must be set to produce net revenues (revenues less expenditures for operations) to cover debt service factor of 1.25 times (1.10 times for water and sewer districts)
  • A reserve account may be required

Application Process

  • Money always available; no funding cycle
  • Applications can be obtained via
    • phone
    • fax
    • mail
    • e-mail
    • Board web site
  • $200,000 and under is considered and approved by Board staff
  • Over $200,000 is considered and approved by Board
  • Funds are released on an on-going basis as the project is completed