Montana to start new loan program for businesses impacted by COVID
(KPAX) HELENA — Montana will be launching a new program next week to help businesses with economic recovery.
Gov. Steve Bullock announced the Montana Working Capital program during a Thursday press conference in Helena.
The program builds off the Montana Loan Deferment program and allows businesses to take out a new loan up to $500,000 with 35% of it granted through Coronavirus Relief Funds. The borrower would still be responsible for making payments on the remaining 65% of the loan.
Businesses can take out a new loan to be used for payroll, employee benefits lease or rent, inventory, utilities or insurance. Gov. Bullock underscored the program’s ability to address some of the biggest and most crucial expenses of a business.
“We are getting money out the door to keep employees on the job, support Montana businesses, and ensure long-term stability,” he said. “With this new program, we can continue to support our economic recovery, while continuing to protect the health and safety of Montanans.”
The program opens up for applications Tuesday, Sept. 8 and will be run by the Board of Investments, in partnership with Montana banks and credit unions.
“Bankers in Montana are doing everything they can to assist businesses impacted by the economic crisis, and both the loan deferment and the new working capital program give them vital new tools in their toolboxes to help businesses regain profitability,” said Montana Bankers Association President and CEO Cary Hegreberg.
“We have worked closely with the Board of Investments for months in crafting programs that are truly beneficial for business owners and are easily implemented by banks. The Bullock administration is to be commended for its tremendous efforts in throwing a lifeline to Montana businesses working through their community banks.”
In order to qualify for the program, borrowers must have experienced a 15% reduction in gross revenue attributed to the impacts of COVID-19. Interested parties should reach out to their lender for more information and qualification guidelines.