Montana Board of Investments
Montana Board of Investments (MBOI) In-State Loan Program
MBOI has a series of loan programs that can be tailored to meet the needs of individual borrowers. These programs require participation of an approved commercial financial institution. However, MBOI is very interested and willing to work with businesses to develop loan packages that best meet their needs.
All of the following loan programs are funded from the Permanent Coal Tax Trust:
Business Loan Participation Program
Features:
Fixed-rate financing up to 25-years with interest rates posted weekly.
Maximum participation amount of approximately $69 million (10% of Trust).
Maximum Board participation is 80% if Board loan participation is less than 6% of Trust.
Maximum Board participation is 70% if Board loan participation is more than 6% of Trust.
Job creation credits may reduce posted interest rate up to 2.5%.
Full credit review using Board underwriting policy.
Go to http://www.investmentmt.com/RatesForms/ for detailed policy and application.
Link Deposit Business Loan Program
Features:
Fixed-rate financing up to 20-years with interest rates posted weekly.
Board invests in a one year CD with the lender for the total amount of the loan.
Lender pledges qualifying investments as collateral with State Treasurer.
CD amount reduced annually commensurate with loan principal pay-down.
No detailed credit review by Board.
Go to http://www.investmentmt.com/RatesForms/ for detailed policy and application.
Guaranteed Loan Purchase Program
Features:
Fixed-rate financing up to 30-years with interest rates posted weekly.
Board purchases 100% of the guaranteed portion of the loan.
Job creation credits may reduce posted interest rate up to 2.5%.
No detailed credit review by Board.
Go to http://www.investmentmt.com/RatesForms/ for detailed policy and application.
Value-Added Business Loan Program
Features:
Maximum 15-year loan term.
10-14 jobs created/retained qualifies for a loan rate at 4% for the first five years.
15 or more jobs created/retained qualifies for a loan rate at 2% for the first five years.
Interest rate at the posted rate until the required jobs are created/retained. Interest rate at 2% or 4% for 1st 5 years, 6% for 2nd five years and posted rate for remaining term. Business must add value to material/products. Board participates with lender in 75% of the funding, risk, collateral, and other security.
Minimum loan of $250,000; maximum loan approximately $6.4 million (1% of trust fund).
Full credit review using Board underwriting policy.
Go to http://www.investmentmt.com/RatesForms/ for detailed policy and application.
Infrastructure Loan Program
Features:
Loans to local government for infrastructure improvement used by basic-sector businesses.
Business for which infrastructure is provided must create at least 15 full-time jobs.
Loan sized at number of jobs times $16,666-minimum loan size $250, 000.
Business pays local government use fee, which is assigned to Board for loan repayment.
Use fee can be totally credited against Montana income taxes paid by business.
Total amount available for this program is $50 million.
Go to http://www.investmentmt.com/RatesForms/ for detailed policy and application.
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