Additional support announced for Montana businesses

A new program established from Coronavirus Relief Funds allows Montana businesses to take out a new loan to support economic recovery. The Montana Working Capital program was announced by Gov. Steve Bullock at the beginning of September and began accepting loan applications Sept. 8. The Montana Working Capital program will utilize the unused portion of the $125 million that the Montana Loan Deferment program was allocated in June of this year.

“We are getting money out the door to keep employees on the job, support Montana businesses, and ensure long-term stability,” Gov. Bullock said in a press release. “With this new program, we can continue to support our economic recovery, while continuing to protect the health and safety of Montanans.”

The loan from the Montana Working Capital program can be used for payroll, employee benefits, lease or rent, inventory, utilities and insurance. The press release states, “new borrowers can work through an approved lender to take out a loan with 35% of it granted through Coronavirus Relief Funds. The borrower would be responsible for making payments on the remaining 65% of the loan. The maximum loan size is $500,000 with a grant of $175,000. The borrower would then be responsible for making payments on the remaining $325,000.”

In order to be eligible, borrowers must have experienced a 15% reduction in gross revenue attributed to the impacts of COVID-19. The rates and terms will be determined by the lender and borrower. The new program will be run by the Board of Investments, in partnership with Montana banks and credit unions.