FAQs

Who is eligible to apply for a business loan from MBAC?

Entrepreneurs, start-up or existing businesses who are unable to access traditional commercial finance. We provide loans for any legal business activity and have no preference for specific types of businesses or industries.  We do prefer to finance businesses that create full time employment for the owner or community residents. A bank may request MBAC’s participation in a loan to your business.

What loan amounts are available from MBAC?

MBAC has made loans from $5,000 to $400,000 in Lewis and Clark, Broadwater, and Meagher Counties (we have made loans in Jefferson County too). At the end of 2005, the average loan size at MBAC was $66,755. In some instances we have successfully acquired loans of $368,000 for applicants through the MT Dept of Commerce Community Development Block Grant Program.

How long does it take to approve an application?

Your business is important to us. Once all the relevant paperwork and background information is collected we will prepare a review your application. Clearly, the more complete your loan application is the faster we can process it. Loans for more than $20,000 require a review by our Loan Review Committee. The Loan Review Committee meets on the 3rd Wednesday of each month to review applications.

What is the Loan Review Committee?

The Loan Review Committee is 9 community members who have volunteered to provide a second level of loan application analysis. As a group their experience covers small and large business ownership and management, legal and financial services, real estate sales and valuation.  The loan review committee does not receive any benefit from approving or denying an application.

How are disbursements and repayments conducted?

Once your loan is approved and documentation signed, we will issue a check for your loan. In some cases the check may be jointly payable to you and the business you are buying property, equipment, or inventory from. You can get a 0.25% interest rate discount if you sign up to have your monthly payments automatically deducted from your bank account. Monthly payments will be begin on the date and for the amount agreed under the terms of your loan agreement.

How much does the loan cost?

MBAC charges competitive interest rates on its loans as well as a $50 ($100 for joint applicants) application fee and 2% (1% for USDA loans) closing fees ($250 minimum). The actual interest rate depends on your credit, repayment ability, collateral, management history/ability, other sources of income/repayment etc.