Montana Department of Commerce Director to Present Over $5.7 Million in Loans to Montana Wood Products Industry

– Two Day Tour to Seeley Lake, Missoula & Deer Lodge –

Montana Department of Commerce Director Anthony Preite will present a total of more than $5.7 million dollars in Montana Distressed Wood Products Industry Recovery & Stabilization (WPIRS) loan funds to Montana wood products companies during a two day tour, on Thursday, August 13, and Friday, August 14, 2009. Director Preite will present funds to Pyramid Mountain Lumber in Seeley Lake, the Missoula Area Economic Development Corporation and Kelly Logging Inc. in Missoula, and Sun Mountain Lumber in Deer Lodge.

“Montana’s wood products industry is an indispensible part of our state economy,” said Governor Brian Schweitzer. “Montana’s logging and trucking companies, lumber mills and wood products producers employ thousands of people. These loan awards demonstrate the State’s commitment to this industry and its workers. The WPIRS program is critical in helping the industry continue to move forward.”

The Montana Department of Commerce WPIRS Program is a federally and state-funded, revolving loan program designed to help businesses in the wood products industry retain or create jobs. WPIRS, proposed by Governor Schweitzer, and approved in 2009 by the 61st Montana Legislature through the Montana Reinvestment Act (HB 645), as a response to the sudden and severe economic downturn of the national economy, and the lowered demand for wood products. The WPIRS program targets areas of the state where timber jobs are most threatened, particularly in counties with lumber mills and similar facilities.

“The Montana Department of Commerce has put forth great efforts to secure these loan funds for Montana’s struggling wood products industry. Every day we continue to seek new resources to ensure this industry continues on until our national economy recovers,” said Anthony Preite, Director of the Montana Department of Commerce. “These funds are on the ground. They are helping to retain jobs and put people to work.”

WPIRS has a total of $11.3 million available for loans to Montana’s wood products industry. The program is comprised of three funding sources:

* State – $7.5 million – Provided through the Montana Reinvestment Act (HB 645)

* EDA – $2.7 million – Provided by the U.S. Economic Development Association (EDA).

* CDBG – $1.5 million – Provided by the federal American Recovery and Reinvestment Act (ARRA) funds from the Community Development Block Grant Program (CDBG).

Schedule of Events:

Thursday, August 13

10:30 a.m. @ Pyramid Mountain Lumber, 379 Boy Scout Road, Seeley Lake

Director Preite will present Pyramid Mountain Lumber, Inc. with a $2 million WPIRS loan. The funds will come from two funding sources – a $1 loan from the EDA WPIRS fund and a $1 million loan from the State WPIRS fund. The $2 million loan will be used for working capital to purchase log inventory. The company is providing $2,415,000 in leveraged funds. The company will create 36 new jobs and retain 105 current jobs.

1:30 p.m. @ Montana Technology Enterprise Center (MonTEC), 1121 E. Broadway Suite 100, Missoula

Director Preite will present Kelly Logging, Inc. with a $1,080,000 WPIRS loan. The funds will come from two funding sources – a $250,000 loan from the EDA WPIRS fund and an $830,000 loan from the State WPIRS fund. The $1,080,000 loan will be used for working capital and debt service. The company is providing $1,049,187 in leveraged funds. The company will create 10 new jobs and retain 44 jobs.

Director Preite will also present Missoula Area Economic Development Corporation (MAEDC) with a $1 million WPIRS loan from the State WPIRS fund. MAEDC is using the $1 million to provide immediate loans to Montana logging and trucking companies impacted by the national economic downturn. The funds will be used for working capital. MAEDC has provided a total of $514,856 in funds to 17 companies. A total of 451 jobs will be retained as a result of these loans.

Friday, August 14

9:30 a.m. @ Sun Mountain Lumber, 181 Greenhouse Road, Deer Lodge

Director Preite will present Sun Mountain Lumber, Inc. with a $1,625,000 WPIRS loan from the EDA WPIRS fund. The $1,625,000 will be used for working capital to purchase raw materials. The company is providing $3,850,000 in leveraged funds. The company will eventually add a second shift at both the solid stud mill and the finger joint plant, creating 95 jobs. It will also retain 103 jobs.