The Treasure State CDC is the newest 504 lender for western Montana.

Businesses and lenders in western Montana now have better access to a major national loan program that provides financing for expanding companies. The U.S. Small Business Administration http://www.sba.gov recently announced that Treasure State Certified Development Company, a nonprofit group created by business, financial, government, and economic development leaders in western Montana, has been approved to provide loans for that agency’s 504 Program.

Michelle Johnston, SBA’s District Director, stated that “we are very pleased to announce the addition of Treasure State as a new CDC, which brings us to four statewide CDC’s.” The other organizations are located in Helena, Great Falls and Billings. “We look forward to working with Treasure State in building this program and know that they will be a great addition to the network,” Johnston concluded.

Cliff Bennett, President of the Board of Directors of the Treasure State CDC, noted that the organization was created to meet a need for the type of financing provided by the 504 Program. “Historically,” Bennett explained, “the 504 Program has been vastly underutilized in Montana, due in part to a lack of SBA-certified local organizations. It is our goal to work closely with local lenders in their area to meet the needs of business customers who are buying land, constructing buildings, and acquiring equipment.”

The Treasure State CDC has about 50 members from across western Montana and its board of directors includes representatives from both rural and urban areas “We have had great support for this effort from the lending community,” Bennett stated, “and we are working hard to ensure that businesses across the region, no matter whether they are in Libby, Superior, Ronan, Kalispell or Missoula can utilize the 504 Program if it’s appropriate for their needs.”

For administrative services, Treasure State CDC has contracted with Missoula Area Economic Development Corporation http://www.maedc.org . Eric Hanson, MAEDC’s Business Development Officer and Loan Program Manager, stated that “we are looking forward to a productive partnership with the Treasure State CDC that will enable small businesses in western Montana to have the ability to purchase real estate and equipment with a smaller amount of equity, leaving more money for operating expenses and growth.”

In a typical 504 project, a private lender would provide 50 percent of the project cost and the SBA 504 Program 40 percent. The borrower’s contribution would be ten percent, although for start-up business the commitment from the borrower would be greater.

Persons seeking additional information are encouraged to contact Eric Hanson at Missoula Area Economic Development Corporation, located at 1121 E. Broadway. (532-3200 or [email protected].)

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Corporation helping small businesses earns license

By TYLER CHRISTENSEN of the Missoulian

Small businesses in western Montana that want to expand may have a new friend in a local economic development corporation recently licensed by the U.S. Small Business Administration to make so-called 504 loans, which typically front 90 percent of the cost on business expansion projects involving real estate or equipment purchases.

The nonprofit Treasure State Certified Development Corp., the latest of just four groups providing these loans in Montana, is the only such organization concentrated in the western part of the state. The others are in Billings, Great Falls and Helena – and though all four operate statewide, Treasure State’s focus is expected to make access to 504 loans easier for businesses and lenders in the area.

Full Story: http://www.missoulian.com/articles/2006/04/07/news/mtregional/news06.txt