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Revolving Loan Funds

Montana has a variety of local and regional revolving loan funds (RLF) that have been capitalized from a number of sources, including the Department of Commerce. Fortunately many are co-located so that a business can access the RLF's that is best suited for each individual business's financing needs. Montana-based businesses with 10 or fewer employees and gross annual revenue of less than $500,000 can apply for a microbusiness loan up to $35,000. These revolving loan funds are administered through non-profit MicroBusiness Development Corporations (MBDCs), which are funded through a loan program at the Department of Commerce, and are located throughout Montana. The locations and contact information for the MicroBusiness Development Loan program can be found on the Business Resources web site.

Some examples of other significant local funds are described below. There are also Tax Increment Finance Districts, Business Improvement Districts, and other miscellaneous funds created randomly around the state from a variety of sources.

COMMERCE ECONOMIC DEVELOPMENT LOAN FUND (CDBG)

This program is administered by the Department of Commerce and is described in more detail in the Business Finance - State section of this web page. The funds are granted by the Department of Commerce to local governments who generally contract with local development corporations to administer the subsequent loans to local businesses. The funds are repaid and managed as a local or regional revolving loan fund available to other eligible area businesses. Many MBDCs manage Commerce CDBG loan funds.

RURAL BUSINESS SERVICES INTERMEDIARY RE-LENDING PROGRAM (IRP)

There are a number of IRP programs around the state, which were funded initially by Rural Business Services, a federal agency. Rural Business Services loans federal funds to development corporations for re-lending to area businesses at relatively low fixed rates.

ECONOMIC DEVELOPMENT ADMINISTRATION REVOLVING LOAN FUNDS

The federal Economic Development Administration (EDA) grants funds to development corporations to capitalize revolving loan funds. The funds are lent to eligible local businesses at low fixed rates in conjunction with other financing sources. EDA programs are covered in more detail under the Local Development - Federal section of this web page.