MBAC REVOLVING LOAN PROGAM

Montana Business Assistance Connection, Inc. operates a revolving loan program to promote economic and community development in Broadwater, Lewis and Clark and Meagher Counties.  The program operates through funding and management contracts with multiple public and private entities.  The MBAC Revolving Loan Program currently consists of the following loan funds under management:

• State Micro Business Finance Program
• USDA Intermediary Relending Program
• US Economic Development Administration Revolving Loan Fund
• Montana Board of Investments Intermediary Relending Program
• Broadwater County Revolving Loan Fund
• City of Helena Revolving Loan Fund
• Lewis and Clark County Revolving Loan Fund
• MBAC Regional Revolving Loan Fund
• Montana DEQ Alternative Energy Revolving Loan Program (statewide)
• Lewis and Clark County Wastewater Revolving Loan Program
• Montana State Small Business Credit Initiative Revolving Loan Fund
• Central Montana Brownfields Revolving Loan Fund

PRIMARY GOALS:

• To promote economic development by funding the establishment, expansion or retention of businesses that create or save jobs and increase private or public investments.
• Create new and retain existing businesses that fall into the targeted industry categories of:  Health Care; Light Manufacturing; Bio Ag; Back Office; Tourism and Retail; Aerospace; and Exporting products or services out of Montana.
• Create new employment opportunities.
• Encourage economic growth in impoverished or blighted areas.
• Develop infrastructure to allow community development.

ELIGIBLE USES OF LOAN PROCEEDS

Revolving Loan Fund proceeds must be used for business purposes and may include:

• The purchase or refinance of commercial real estate and fixed assets
• Working Capital
• Debt consolidation and/or restructure
• Bridge Financing

LOAN TERMS

Based upon loan purpose, maximum loan terms should not exceed:

• Short-term Working Capital – Up to one year
• Permanent Working Capital – Up to five years
• Fixed Assets – Up to 10 years
• Real Estate – Up to 20 years

In most cases, loan will be structured to have a balloon payment at the end of year three or five.  Loans will be reviewed at balloon maturity to determine if transition to other financing is appropriate, or if an MBAC extension is appropriate.

Alternative Energy Loan Program

MBAC through a partnership with the Montana Department of Environmental Quality, offers an Alternative Energy Loan Program available to both small businesses and home owners. The program, established by the Montana State Legislature in 2001, provides financing options to install alternative energy systems. The most common types of energy systems financed are solar panels that generate electricity (photovoltaic systems); solar panels for hot water and /or space heating; small wind generators; biomass (wood) heating appliances; and ground-source heat pump systems for space and water heat.

Loans can be made up to a maximum of $40,000, with a ten year term and a 3.5%, (4.023% APR) fixed rate. Additionally, these alternative energy systems may be eligible for state and federal tax incentives.

MBAC is the financial contractor and is responsible for loan origination and servicing. To date MBAC has processed over 550 loans totaling nearly $12.0 million. To learn more about the program, go to:
https://deq.mt.gov/Energy/EnergizeMT/renewable/altenergyloan