Workforce Training Grants
The Business Development Center provides assistance to obtain workforce training dollars for businesses to supplement their training costs. Multiple workforce training grants are offered through the State of Montana and typically are used for new worker training. Some funds are also available for incumbent worker training.
Tax Credits
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years).
Community Development Block Grant
We encourage new business and expand existing business through:
The Community Development Block Grant (CDBG) was created to stimulate economic development activity to assist Montana’s private sector to create or retain jobs for low and moderate income (LMI) persons. The program assists businesses by making fixed-rate financing available to them at reasonable interest rates and by providing public improvements in support of economic development activities.
The CDBG program works to:
- Provide services to the most vulnerable in our communities
- Create jobs through the expansion and retention of businesses.
- The CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the nation.
Eligible uses of CDBG planning funding include:
Funds can be used for the preparation of plans, studies, analyses, or research in the following areas:
- Community growth policies or strategic plans.
- Community needs assessments, action plans or implementation strategies.
- Housing plans, including housing needs studies, housing condition surveys, housing affordability studies or plans, housing project feasibility studies, or the development of housing assistance programs.
- Neighborhood redevelopment plans, urban renewal plans, analyses of impediments to fair housing choice, and environmental and historic preservation studies.
- Plans intended to mitigate adverse effects of construction in areas subject to natural hazards, such as flooding, earthquakes or wildland fire.
- Plans for reuse of vacant industrial areas (“brownfields”) for possible redevelopment.
- Conduct of income surveys necessary to complete a CDBG application.
- Downtown revitalization studies.
- Preliminary architectural plans for housing or public facilities projects.
- Funding applications for housing or public facilities projects.
- Loans to Businesses: Activities include loans to businesses for acquisition, construction, installation, or rehabilitation of commercial and industrial buildings, facilities, equipment, or working capital.
- Customized Employee Training: Employee training is a stand-alone project activity allowing up to a maximum of $400,000 in grant funding per local government in a program year for new and expanding businesses creating additional jobs. The intent is to assist businesses in providing needed skills and better-paying jobs for their workers. The goal is to facilitate the growth of companies in Montana, increase wages for trained workers, increase employee productivity, and assist in the skill development of employees. Preference is given to training that focuses on developing transferable skills in emerging industries such as information and advanced technology, health services, value-added agriculture and communications. Funding may also be distributed to a qualified educational or nonprofit training entity that provides job training targeted to developing specific employee skills needed by an aggregate of companies. The maximum grant amount to a for-profit business or non-profit organization for each employee trained is $5,000.
- Technical Assistance Grants: A maximum of $25,000 per local government may be requested to be used for a variety of planning activities, including the initial planning necessary to develop a CDBG-ED project, prepare a growth policy, economic development strategy, or other planning documents.
- Business Infrastructure Projects: CDBG-ED funds may be used to build infrastructure such as water, sewer, streets or sidewalks in support of businesses. The businesses must be identified at the time the application is submitted. Applications that propose public improvements as assistance to businesses will be reviewed with similar procedures as for loans to for-profit businesses and must include a complete business plan, financial package and hiring and training plan for each business being assisted, must meet the same threshold requirements, demonstrate viability, and meet all other appropriate requirements contained in the Application Guidelines for the Community Development Block Grant – Economic Development Program.
Big Sky Trust Fund Grant Assistance
The Big Sky Economic Development Trust Fund (BSEDTF) grant is funded through the Montana Department of Commerce, and is a state-funded program created by the 2005 Legislature. It is oriented to aid in the development of good paying jobs for Montana residents and promote long-term stable economic growth in Montana. The BSEDTF program is designed to provide financial assistance in the following two categories – Economic Development Job Creation Projects and Planning Grants.
Montana Board of Investments
The Board of Investments administers a variety of financial assistance and investment programs. These programs are designed to stimulate economic development by assisting the private sector and local governments in financing new or expanded businesses as well as infrastructure development. Programs include the In-state Loan Program to help finance new or expanded businesses; the INTERCAP Program that provides loans to local governments; the Short Term Investment Pool (STIP) that allows state agencies and local governments short term investment opportunities; and the Unified Investment Program that invests and manages all state investment funds including state pension funds.
Montana Board of Investments Loan Programs:
Business Loan Participation Program
- Fixed-rate financing up to 25-years with interest rates posted weekly.
- Maximum participation amount of approximately $70 million (10% of Trust).
- Maximum Board participation is 80% if Board loan participation is less than 6% of Trust.
- Maximum Board participation is 70% if Board loan participation is more than 6% of Trust.
- Job creation credits may reduce posted interest rate up to 2.5%.
Link Deposit Business Loan Program
- Fixed-rate financing up to 20-years with interest rates posted weekly.
- Board invests in a one year CD with the lender for the total amount of the loan
- Lender pledges qualifying investments as collateral with State Treasurer.
- CD amount reduced annually commensurate with loan principal pay-down.
Guaranteed Loan Purchase Program
- Fixed-rate financing up to 30-years with interest rates posted weekly.
- Board purchases 100% of the guaranteed portion of the loan.
- Job creation credits may reduce posted interest rate up to 2.5%.
Value-Added Business Loan Program
- Maximum 15-year loan term.
- 10-14 jobs created/retained qualifies for a loan rate at 4% for 5 years.
- 15 jobs created/retained qualifies for a loan rate at 2% for five years.
- Interest rate will be at the posted interest rate until the required jobs are created/retained.
- Interest rate set at lowest rate for 1st 5 years, 6% for 2nd 5 years the Board posted rate at the time of application for the remaining term.
- Jobs created/retained must be by a business adding value to material/products.
- Board participates with lender in 75% of the funding, risk, collateral, and other security.
- Minimum loan size $250,000-maximum loan size approximately $7.5 million.
- Total amount available for this program is $70.0 million.
Infrastructure Loan Program
- Loans to local government for infrastructure improvement used by basic-sector businesses.
- Business for which infrastructure is provided must create at least 15 full-time jobs.
- Loan sized at number of jobs times $16,666-minimum loan size $250,000.
- Business pays local government use fee, which is assigned to Board for loan repayment.
- Use fee can be credited against Montana income taxes paid by business, MCA 15-31-301.
- Total amount available for this program is $80.0 million.
USDA-Rural Development Programs
Rural Energy for America Program (REAP)
The REAP Guaranteed Loan Program encourages the commercial financing of renewable energy (bioenergy, geothermal, hydrogen, solar, wind and hydro power) and energy efficiency projects. Under the program, project developers will work with local lenders
Rural Microentrepreneur Assistance Program (RMAP)
RMAP’s goal is to help new & existing rural microentrepreneurs by providing funds to microenterprise development organizations for microlending and technical assistance to their microloan prospects & borrowers.
A “rural microenterprise” is located in a rural area (undefined) and employs 10 or less full time employees. A “microloan” is a loan of $50,000 or less. It must carry a fixed interest rate.