*NEW* Montana Working Capital Program, Board of Investments and Department of Revenue
The Montana Working Capital Program is designed to aid Montana businesses impacted by the COVID-19 pandemic. Businesses are eligible for grant funds to support working capital loans from eligible lenders. All Borrowers must meet the following criteria to be eligible to receive Montana Working Capital Program funding. Information will be verified in part by the Lender, Montana Board of Investments, Montana Department of Revenue, and other assisting agencies.
- The loan requesting assistance must be a commercial loan to a Montana business;
- The Borrower must have been no more than 30 days past due as of December 31, 2019, with the originating lender;
- The Borrower must be current on all other State financial obligations (i.e. income tax, property tax, payroll tax, workers comp., child support, etc.);
- The Borrower must be in good standing with the Montana Secretary of State;
- The Borrower’s business cannot be publicly traded;
- The Borrower must not have access to 12 months of working capital from any other sources;
- The Borrower cannot be engaged in any illegal activity under federal, state, or local law;
- The proceeds from the program may not be used for any marijuana-related business;
- The borrower, an owner with at least 20% ownership, or a guarantor cannot generate any revenue from marijuana-related business; and
- The Borrower must have experienced a 15% reduction in gross revenue attributable to the direct or indirect impacts of COVID-19.
Use of Proceeds:
Proceeds may be used for the following expenses incurred between March 12, 2020 and December 30, 2020: payroll/contract labor; employee benefits; leases/rents; inventory; utilities; insurance; advertising; repairs and maintenance; office expense; and interest for this loan request only. Proceeds may NOT be used for: real estate purchases; payment of taxes of any type; interest or principal payments on other outstanding debt; investment or re-lending of funds; dividends or distributions; or contributions to, or on behalf of, any political party, party committee, or candidate for elective office.
General Loan Terms:
- Maximum Grant Size – $175,000 grant on a $500,000 principal loan (35/65 grant to loan).
- Origination Fee – MBOI to pay 1% or $5,000, whichever is less.
- Term – To be determined by Lender and Borrower.
- Rate – To be determined by Lender and Borrower.
- Existing term loans are ineligible for participation.
- Existing operating notes as of March 12, 2020 must be converted to term loans.
- The grant portion of the Working Capital Program is taxable income and a 1099 will be issued to the holder of the note.
- Lenders who denied eligible businesses from participating in the Montana Loan Deferment Program are not eligible for the Montana Working Capital Program.
- Loans funded in the Montana Loan Deferment Program are not eligible for the Montana Working Capital Program.
- Loans approved in the Montana Working Capital Program are not eligible for the Montana Loan Deferment Program.
Businesses should contact their lender to apply. Deadline to apply is Oct. 23, 2020.
*NEW* Live Entertainment Grant Program, Governor’s Office of Economic Development
The Live Entertainment Grant Program is available to Montana-based businesses and non-profits that are directly engaged in the business of live entertainment, and whose revenues primarily come from live entertainment events. This grant is intended to ensure the long-term viability of live entertainment in Montana that has been severely impacted by COVID-19. Bars, restaurants, and other facilities whose primary business is anything other than live entertainment are not eligible. Businesses that are not directly responsible for the production of live entertainment events in Montana are not eligible. Examples of ineligible businesses include wedding venues, event support software, tradeshows, event planners, and tour operators. To be eligible, applicants must have either derived at least 33% of their 2019 revenue from the sale of tickets for live events or must be businesses that are directly reliant on ticketed live entertainment events but are not directly in receipt of ticket revenue. That includes only the following business types: venues, event promoters, event production, lighting and sound, rigging and stagehands, security, and other physical infrastructure. Eligible applicants’ revenue for Q2 (April 1 – June 30) 2020 must also be no greater than 10% of 2019’s Q2 (April 1 – June 30) revenue. Total funding available is $10 million.
*UPDATED* 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 $200 million, the maximum award amount per business is $20,000. Businesses that have been awarded a grant prior to August 12, 2020 will be eligible to receive a second payment for three additional months of working capital – equal to the first payment received. New applicants are eligible to apply for up to six months of working capital or $20,000 whichever is less. Deadline to apply is September 30, 2020. [Updated Sept. 16, 2020]
*NEW* East Edge of Glacier Park Tourism Business Grant, Montana Department of Commerce
Tourism-reliant businesses in the Babb – St. Mary - East Glacier corridor may be eligible to apply for a grant of up to 25 percent of their 2019 gross revenue based on a 2019 tax return. The maximum award available is $40,000. Any Business Stabilization Grants or Agriculture Adaptability Grants awarded to the business will be deducted from the eligible East Edge of Glacier Park Tourism Business Grant total. The business must be located along the eastern edge of Glacier Park in the immediate vicinity of East Glacier, St. Mary or Babb, and must be a Montana-based business, pay Montana taxes, in good standing with the Secretary of State or local tribal government. To be eligible, a business must have exhausted the grant opportunities made available through the Business Stabilization or Agriculture Adaptability grant programs. Nonprofit entities are not eligible. Total funding available is $2 million. Applications open August 19, 2020.
*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 will be funded; or
- For borrower obligations with interest rates of 6% or higher, an amount equal to 6% interest will be funded.
- 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 and will be fixed at that interest rate for the term of the deferment.
- Entities and individuals with multiple loans for one or several businesses will be allowed to apply for each individual loan
- Borrower is defined as an individual, corporation, limited liability company, partnership, association or any combination of these if there is common ownership. Including Holding and Operating Companies. [Updated: July 1, 2020]
- It is the responsibility of the Lender and the Borrower to agree on a reasonable term for the deferment which will be no less than 6 months and no more than 12 months.
- The Lender must be an Approved Lender with Montana Board of Investments (MBOI).
- The Borrower must be a Montana-based business. Borrower is defined as an individual, corporation, limited liability company, partnership, association or any combination of these if there is common ownership. Including Holding and Operating Companies. [Updated: July 1, 2020]
- This program is extended on a per note basis, i.e. Lender’s may fill out an application for each current loan the Borrower would like deferred.
- To be eligible, businesses/Borrowers must have:
- Experienced a reduction of gross revenue of 15% or greater attributable to the direct or indirect impacts from COVID-19; [Updated: August 24, 2020]
- Physical presence in Montana;
- Been no more than 30 days past due as of December 31, 2019;
- Been current on all other state financial obligations (i.e. income tax, property tax, payroll tax, worker’s comp, child support, etc.) as of March 12, 2020;
- Good standing with the Montana Secretary of State; and
- No reasonable access to 12 months of working capital from any other sources.
- Receipt of Payroll Protection Program, Economic Injury Disaster Loans, or other state grants or assistance programs does not affect eligibility. [Updated: July 1, 2020]
Application Deadlines, Awards and Funding
- Applications received between August 22, 2020 and September 4, 2020 will be funded on September 15. [Updated August 24, 2020]
- Applications received between September 5, 2020 and September 18, 2020 will be funded on September 29, 2020.
- No new applications will be accepted after 5PM on September 18, 2020. [Updated August 24, 2020]
- For any applications requiring additional review or audit, all materials must be submitted by October 21, 2020 or the application will not be considered for funding. [Updated August 24, 2020]
Montana businesses should contact their lender to access the program.
*NEW* Montana Business Adaptability Grant Program, administered by the Montana Department of Natural Resources and Conservation
Adaptability 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 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. Eligible businesses may submit up to two applications for a combined total of $10,000 of costs paid (receipts and proof of payment are required) for reimbursement.