Commerce will provide up to 50% of the equipment purchase price, which may include shipping costs and incidentals related to the equipment’s operation. Incidentals charged to Commerce’s portion of the loan must be expressly approved by the program prior to obligating program funds. The maximum loan amount for Commerce’s portion of the loan is $500,000 per transaction. By extension, an eligible business may apply for up to a total of $1 million in funding over the lifetime of the program.
OKTA account registration is required to access the guidelines and application for the Montana Automation Loan Program.
The CIJR will identify the equipment, the cost of the equipment and the resulting annual savings and/or costs. Additionally, the CIJR will demonstrate the pay-back period and return on investment.
Eligible applicants are Montana-based manufacturing businesses that are in good standing with the Montana Secretary of State or Tribal Government, and who derive at least 51% of their revenue from the sale of manufactured goods. Businesses must be registered with the Montana Secretary of State for a minimum of one year before applying. Businesses must not be debarred from doing business with the state or federal government.
The applicant may qualify as a manufacturer or a manufacturing-related business if one or more of the following conditions is met:
MMEC is a statewide manufacturing outreach and assistance center that provides solutions to help Montana manufacturers grow, innovate and enhance their businesses.
Participating lenders are approved lenders, such as banks or credit unions, that must execute a Program Lender Loan Servicing Agreement and adhere to the terms and conditions contained therein. Please contact program staff to become an approved participating lender. A list of all current participating lenders may be found at the bottom of this page.
An eligible cost is the purchase and installation of production equipment that will result in a 20% or greater ROI. The financed equipment should be aimed at automating processes and enhancing workflow efficiencies. The ROI is shown through the CIJR completed by the MMEC.
Commerce will provide up to 50% of the equipment purchase price, which may include shipping costs and incidentals related to the equipment’s operation. Incidentals charged to Commerce’s portion of the loan must be expressly approved by the program prior to obligating program funds. The maximum loan amount for Commerce’s portion of the loan is $500,000 per transaction. By extension, an eligible business may apply for up to a total of $1 million in funding over the lifetime of the program.
The terms of the loan should be consistent with the useful life of the equipment and individual project needs. The program allows for a maximum loan term of seven years, with a preference for a five-year payback period. The loan may be amortized up to 20 years. Commerce’s portion of the loan will be provided at 0.00% interest. Loan payments on Commerce’s portion of the loan may be deferred for the first year.
All program-supported loans must be secured with fixed assets, personal guarantees or any other reasonable source of available collateral. Collateral may be secured in a subordinated security position to other lender loans.
The approved participating lender will service the participated loan and will collect all loan payments. Commerce will provide a servicing fee of $1,500 per loan to the participating lender for managing the loan payments.
Commerce is the primary point of contact for initiating a loan application and working through the process leading to the loan closing.
The eligible business will submit an application to Commerce. Once the application is received, the businesses participating lender is identified, and the business is confirmed good standing, Commerce will contract with MMEC to complete an inspection and assist the business in completing the required CIJR. After the report is received in conjunction with the credit underwriting provided by the participating lender, the Commerce Loan Review Committee will complete the review process of the applicant. Thereafter, the eligible business will receive a final determination of funding from Commerce via a commitment letter. Please contact program staff for guidance and clarification on the application process and funding timeline.
Receipt of an application does not imply a commitment for funding from Commerce.
The Commerce Loan Review Committee will review the applications for eligibility and suitability with state and program requirements.
Purchases that show an ROI of more than 30% will have the highest priority. Projects that intend to install the production equipment within six months of application date or sooner will also receive priority.
Applications will be accepted on a first-come, first-served basis until all funds have been obligated.
These banks participate in the Montana Automation Loan Program:
American Bank
800-255-7911
americanbankmontana.com
Bravera Bank
877-483-6811
bravera.bank
Citizens Alliance Bank
844-772-4258
citizensalliancebank.com
First Interstate Bank
855-342-3400
firstinterstatebank.com
Freedom Bank
406-892-1776
freedombankmt.com
Glacier Bank
800-735-4371
glacierbank.com
Opportunity Bank
888-750-2265
opportunitybank.com
Stockman Bank
877-300-9369
stockmanbank.com
Sweetgrass Development
406-727-5173
sweetgrassdevelopment.org
TrailWest Bank
406-273-3001
trailwest.bank
Valley Banks of Montana
866-676-2055
valleybanks.com
Yellowstone Bank
406-869-4100
yellowstone.bank
Montana Department of Commerce
301 S Park Ave, Helena, MT 59620
Contact Us | 406-841-2700
Montana Relay 711