Montana State Small Business Credit Initiative (MT SSBCI) Program
The Montana State Small Business Credit Initiative (MT SSBCI) Program has been created using funds received from the U.S. Treasury Department as part of the Small Business Jobs Act of 2010 (the "Act"). The Act created the State Small Business Credit Initiative to strengthen state programs that support lending to small businesses and small manufacturers.
Montana will be using $12.6 million to create a new loan participation program with the intent to generate at least $10 in new small business lending for every $1 received in Federal funds. The goal is to leverage this initial funding into over $130 million in new lending within Montana.
The MT SSBCI funds will assist new Montana businesses entering the market and those existing businesses that need additional borrowings to expand or stabilize their business. Lender loans eligible for MT SSBCI participation include, but are not limited to, real estate, equipment, working capital, lines of credit, and non speculative new businesses.
The major benefit to Montana is the creation or retention of jobs and increased economic activity for the state. It is anticipated that for every $75,000 of MT SSBCI loan funds participated with Montana lenders, one job will be created or retained, thereby impacting approximately 186 Montana jobs.
MT SSBCI Funding Recap
At this time, all available funds have been committed. Once all approved loans have been disbursed by the participating CDFI/RLFs, a review to determine if there are any remaining funds will be completed. At this time, if applicable, the CDFI/RLFs will be informed of the necessary steps to apply for any remaining funds.
The following program flowchart outlines how the program is designed to work:
MT SSBCI Flowchart (PDF)
As the flowchart shows, a primary lender partners with an approved Community Development Financial Institution (CDFI) or local economic development organization with a revolving loan fund (RLF) to participate in the MT SSBCI program.
The lenders submitting an application to the CDFI/RLF who are already Approved Lenders with the Montana Board of Investments (MBOI) are required to adhere to the terms and conditions contained in their existing MBOI's Approved Lender Commercial Servicing Agreement.
Lenders, who are not already MBOI Approved Lenders, must complete the Approved Lender Commercial Servicing Agreement prior to the submission of a MT SSBCI application. A link to the Agreement document can be found here:
CDFI/RLF Loan Servicing Agreement: Word
More information regarding the program can be obtained from the following documents:
MT SSBCI Policy (PDF)
MT SSBCI EFT Authorization CDFI-DOC: Word
MT SSBCI Reporting Documents:
Participation Certificate (Word)
Participation Report (Excel)
US Treasury Program Requirements:
Borrower Certification (Word)
Lender Certification (Word)
Commercial Rate Sheet (Updated Weekly): PDF