State bond program to help wider range of businesses, nonprofits

(Missoula Current) More local projects will qualify for a state bond that could help drive economic development without relying on taxpayer funds, the state announced on Monday.

The Montana Facility Finance Authority, which serves under the Montana Department of Commerce, will begin providing conduit bonds to a broader range of projects.

The changes made under Senate Bill 104 will enable provide businesses and nonprofits a “clear, reliable route to the bond market", according to the state. Gov. Greg Gianforte signed SB 104 into law last month.

“Conduit bonds play a vital role in driving economic development by enabling large-scale projects that provide substantial public benefits, such as healthcare and housing,” said Adam Gill, executive director of the finance authority. “These investments not only create jobs and stimulate local economies but also enhance the overall quality of life for Montanans.”

MFFA has facilitated the issuance of more than $4 billion in bonds across Montana over the past four decades. But the new bill expands access to MFFA’s financial expertise, enabling a broader range of borrowers to move forward with critical expansion projects that might otherwise face delays, reductions or cancellation.

The bill also triples the biennial bond issuance cap from $500 million to $1.5 billion. It will automatically increase the cap by 3 percent every two years.

Gill said the prior bond market served healthcare facilities across Montana. While the avenue has always been available to other organizations, Gill said they had to work through local governments that weren’t consistently available or equipped with the resources to help.

“This new law changes that,” Gill said. “It allows us to offer our expertise directly to a broader range of eligible projects, without creating any obligation for the state or its taxpayers. It’s a win for the organizations, a win for communities and a win for Montana.”