In 2009, the Montana Legislature approved HB 669 to create the Montana Distressed Wood Products Industry Revolving Loan program, in response to the sudden and severe economic downturn of the national economy lowering the demand for wood products. WPIRS was a federally and state-funded loan fund, providing financial assistance to create or retain jobs in the wood products industry. It targeted areas of the state where timber jobs were most threatened, particularly in counties with lumber mills and similar facilities. WPIRS is now known as the Wood Products Revolving Loan Fund and continues to provide funds for businesses in Montana’s wood products industry.
$11.3 million was originally allocated for loans within the industry, and while all original funds have been loaned, the WP RLF continues to have funds available for new loans due to the ongoing collection of payments from the loan recipients.
WP RLF loans are available to individuals, including private contractors, or businesses defined as small businesses pursuant to the regulations promulgated by the United States Small Business Administration pursuant to 13 CFR 121, et seq.
Currently the WP RLF has $4,191,317.19 available for lending.
State WP RLF loans may be used for, but not limited to, the following:
The maximum funding amount may not exceed a total loan amount of $2 million with the maximum loan term being 15 years. Loan recipients may not apply for another WP RLF loan until two years after the date their previous loan was approved.
The WP RLF Program is available to Eligible Businesses, including both existing Montana businesses and businesses seeking to expand into the state. Loans must be made to individuals or small businesses that are part of the critical, primary wood processing infrastructure and have suffered economic hardships. Loans must be used to sustain and grow the wood products industry in Montana.
The WP RLF Program primarily operates as a Loan Participation program with approved Participating Lenders. MDOC will only provide direct loans to Eligible Businesses up to $1,000,000; all other loan requests require a Participating Lender. MDOC reserves the right to exceed the direct loan maximum on a case by-case basis when the proposed project demonstrates significant impact to Montana’s wood products industry or is otherwise determined to be in the best interest of the Program. There is no minimum loan amount, and applicants should determine the minimum WP RLF financial assistance necessary to stimulate their proposed project or private investment. The maximum loan amount as a Participation Loan is $2,000,000.00 (two million dollars), with no more than $2,000,000.00 (two million dollars) in funding requests permitted for an assisted Eligible Business within a single calendar year. Loan recipients may apply for additional WP RLF funding two years or more after their previous loan approval date.
State WP RLF loans may be used for, but not limited to, the following:
Interest Rate: The interest rate on the WP RLF participated portion of the loan is based on the amortization period of the loan. The interest rate on the WP RLF portion of funds will be fixed for the term of the loan as follows:
Participating Lenders may be (i) a financial institution, (ii) an economic development organization that manages revolving loan funds, or (iii) a Community Development Financial Institution (“CDFI”) that jointly funds a WP RLF supported loan with MDOC. A Participating Lender must execute a lender loan servicing agreement with the MDOC. Please contact program staff to become an approved Participating Lender.
The program offers multiple pathways for accessing capital, including both direct lending and loan participation options, allowing applicants to choose the structure that best fits their financing needs. Eligible businesses may work with either Program Staff or a Participating Lender to decide whether to proceed with a loan application. If pursuing a loan participation, the Participating Lender will initiate the application process. If seeking a direct loan from Commerce, the borrower will initiate the application and work directly with Program Staff to fund their project. Once the application is submitted, the Loan Review Committee will review the applications for eligibility and suitability with state and program requirements. The committee may request additional information, approve, or reject the application. Receipt of an application does not imply a commitment for funding.
Applications must be completed online by the Participating Lender through the ServiceNow application portal located here.
Primary Lenders and Applicants may be required to create an Okta profile, which requires a valid email account. Okta is located at okta.loginmt.com.
Montana Grant and Loan Portal Login (Okta) Instructions
Montana Grant and Loan Portal Login (Okta) Video Instructions
These documents are available to be viewed/printed from either the ServiceNow application portal, Word/Excel or the free Adobe Acrobat Reader. If you do not have this reader, click on the link to download a free version - Adobe Acrobat Reader. If you receive errors when opening pdf files, make sure you have the latest Acrobat Reader version.
Program Status Reports are required by MCA 90-1-503 to be provided to the Economic Affairs Interim Committee:
WP RLF Program Status Reports available for:
Montana Department of Commerce
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