*NEW* Montana Loan Deferment Program, Montana Board of Investments and Department of Revenue
The Montana Loan Deferment Program is facilitated by Montana banks, credit unions, and lending institutions in partnership with the State of Montana. The governor is directing $125 million to the program with $25 million specifically dedicated to hotels and restaurants and the remaining $100 million dedicated to other eligible borrowers. Coronavirus Relief Funds (CRF) will be used to provide payments to participating lenders to convert existing commercial loans to interest only status, with the result being an existing borrower will be able to defer principal and interest payments on existing loans for a period of 6 to 12 months, thereby freeing up a significant amount of otherwise-dedicated capital for the borrower on a monthly basis. Upon approval, the State of Montana will provide a lump sum CRF payment to the lender in an amount equal to the following:
- For borrower obligations with interest rates less than 6%, an amount equal to the full interest payments for the eligible term; or
- For borrower obligations with interest rates of 6% or higher, an amount equal to 6% interest.
- For the duration of the eligible term, the lender will lower the interest rate to 6% for the modified deferral period.
- For variable rate loans, the interest rate used in the calculation will be the interest rate applicable to the loan at the time the application is submitted.
- The maximum amount of CRF participation per loan note is $150,000.
- Entities and individuals with multiple loans for one or several businesses will be allowed to apply for each individual loan
The be eligible, the borrower must certify to the following:
- Borrower is current on all debt obligations, as of December 31, 2019
- Borrower has experienced a 25% reduction in gross revenue – attributable to the direct or indirect impacts from COVID-19 – during a comparable YOY period
- Borrower does not currently have access to 12 months of working capital from any other source, including owners, guarantors, affiliates, capital markets, etc.
- The loan does not have an SBA 7A or 504 guarantee
- Borrower is not a publicly traded company
- Borrower is not engaged in any activity that is illegal under federal, state, or local law
- Borrower can demonstrate business is located in Montana and registered with Secretary of State to do business in Montana
- Borrower certifies accuracy of information provided and agrees certification is subject to all applicable laws – and punishable by law - pertaining to fraud and other false statements
Montana businesses should contact their lender to access the program.
*NEW* Montana Meat Processing Infrastructure Grant, Montana Department of Agriculture
The Montana Meat Processing Infrastructure Grant is available to aid small and medium-sized meat processors responding to COVID-19 supply chain disruptions by supporting local meat processing infrastructure and capacity in Montana. Due to interruptions in national supply chains, meat processing capacity throughout the US has been significantly impacted. Supporting in-state meat processing infrastructure and capacity will provide alternative market channels for Montana’s cattle, hog and poultry producers. Examples of eligible expenses include, but are not limited to, equipment and infrastructure that increases processing and/or storage capacity, costs associated with becoming State or Federally inspected, and other business adaptation and diversification activities. Total funding available is $2,000,000, with a maximum award of $150,000. The application deadline is July 2, 2020 at 5:00 p.m..
*NEW* Montana Business Adaptation Program, administered by the Montana Department of Natural Resources and Conservation
The Montana Business Adaptation Program will provide reimbursement for COVID-19 expenses related to keeping staff and customers safe – from the purchase of personal protective equipment to resources needed for staff to work remotely. Eligible small business must be Montana-based, have incurred eligible adaptation expenses since March 1 due to COVID-19, and be in good standing with the Secretary of State or local tribal government. Nonprofit entities are eligible. Eligible expenses include costs related to communication, remote work equipment, cleaning supplies, tools to enhance social distancing and sanitation, travel and hotel costs related to quarantining workers. Total funding available is $20 million, the maximum reimbursement amount per business is $5,000.
*NEW* Montana Department of Commerce, Montana Business Stabilization Program
The Montana Business Stabilization Grant program will provide working capital for small businesses to support payroll, rent, accounts payable, debt service and expenses related to shifts in operations in order to retain existing businesses, retain current employees or retain business viability for future re-employment. Eligible small business must be Montana-based, employ 50 or less, have sustained a loss of revenue since Feb. 15 due to COVID 19, and be in good standing with the Secretary of State or local tribal government. Nonprofit entities are not eligible. Total funding available is $75 million, the maximum award amount per business is $10,000.
*NEW* Governor’s Office of Economic Development, Montana Innovation Grant Program
The Montana Innovation Grant program is intended to help companies scale up, improve capabilities, or drive expanded distribution of products or services developed in response to COVID-19. Projects should demonstrate significant impact in improving public health, safety, and economic impact. Eligible companies include non-profit and for-profit businesses of less than 150 employees that have created an innovative product or service intended to directly confront the COVID-19 emergency. Applicants must have primary operations based in Montana, be in good standing with the Montana Secretary of State and must not be debarred from receiving federal or state funds. Total funding available is $5 million with a maximum award amount of $25,000. Deadline to apply is July 1, 2020.
*CLOSED* Montana Department of Agriculture, Montana Food and Agriculture Adaptability Program
Grants are available to food and agriculture businesses to help increase community resilience amid the COVID 19 pandemic and other economic disruptions. Grants are intended to create additional economic activity and bolster food security. Examples of eligible projects include, but are not limited to, those focused on accessing new markets, projects which strengthen and expand local food systems, and other business adaptations that decrease food and agricultural waste. The need for such innovations must be driven by the COVID 19 pandemic.