$1.3 Million in New Funds Available for Montana Small Business Loans

U.S. Treasury Announces Major Award to Montana CDC for Small Business Loans

Montana small businesses now have access to an additional $1.3 million in loan funds thanks to a recent award from the U.S. Department of Treasury to the Montana CDC. The award from the Community Development Financial Institution (CDFI) Fund within the US Treasury marks the fifth year in a row Montana CDC has successfully earned an award and its ninth since 1999. Montana CDC lends the money to businesses across the state that don’t qualify for bank financing.

The CDFI Fund was established in 1994 to promote economic revitalization and community development. With strong support from members of Congress, including Senator Max Baucus and Senator Jon Tester, the CDFI Fund has awarded over $1.8 billion to low-income and economically distressed communities. Montana CDC has been awarded nearly $9 million of that total since 1999.

Montana’s senior U.S. Senator Max Baucus, a long-time supporter of Community Development Financial Institutions, applauded Montana CDC for injecting these resources into Montana’s small businesses.

"This investment will help the rubber meet the road for Montana’s small businesses and provide the right tools necessary to bring more good-paying jobs to our state," said Baucus.

With the addition to the loan fund, Montana CDC has greater capacity to support small businesses throughout the state struggling with limited access to capital.

"The Montana Community Development Corporation’s continued support for our communities and small businesses keeps Montana number one in the nation in small business creation. Awards like this ensure that Montana entrepreneurs have access to capital so they can keep creating jobs and providing the goods and services that Montanans need," said U.S. Senator Jon Tester.

"Financial tools like the CDFI Fund are critical in helping us achieve our mission of transforming the lives of individuals and strengthening community prosperity. This award allows us to support businesses and make an impact on the economy in our state," said Dave Glaser, President of Montana CDC.

Businesses across the state have received CDFI Fund loans through Montana CDC. Walter "Duffy" Duffield of Plain Feather Construction in Billings purchased equipment with a Montana CDC loan, which allowed the company to reduce rental expenses and increase job capacity. In Kalispell, a Montana CDC loan helped owner Jim Bliss keep up with demand for his services and take on more accounts at Tri-State Restaurant Supply. David Stark, a student turned employee turned owner at Bitterroot Gymnastics, needed financing for equipment and remodeling in a new space. With a loan from Montana CDC, David opened the new facility and incorporated a movement-based preschool, expanding the options for early childhood education in Missoula.

The Treasury’s CDFI Fund awards money to community-based financial institutions like Montana CDC that spur economic growth and promote access to affordable financial products and services to low-income communities. Nearly 400 qualified CDFIs across the U.S. applied for the funds, but only 191 received an award. The CDFI Fund allocated a total of over $150 million. Award recipients received different total amounts. For the fourth year in a row, Montana CDC was among those that were allocated the highest level of funding. This year, the high mark is $1,347,000. Award amounts started at $20,000.

The $1.3 million CDFI Fund award bolsters Montana CDC’s loan fund, which provide financing for start-ups as well as established businesses. Loan amounts range from $1,000 to $1,000,000. Montana CDC will use the award to continue to help small businesses make a big impact on local and regional economies. For questions about Montana CDC’s lending or consulting services, contact Melanie Calahan at 406-728-9234.

###

About Montana CDC

Montana Community Development Corporation (Montana CDC) is a 501(c)3 that provides business financing and consulting services that transform the lives of individuals and strengthen community prosperity. Since 1986, Montana CDC has lent nearly $300 million to over 450 businesses through its business loan program including New Markets Tax Credit enhanced loans. Additionally, Montana CDC’s business consulting and training programs have helped educate thousands of people.

With its financing and consulting tools, Montana CDC helps entrepreneurs start new businesses, helps business owners expand their businesses, and works to create vibrant economic communities that offer better employment opportunities and long-term growth potential.

About the CDFI Fund

Since its creation in 1994, the CDFI Fund has awarded over $1.8 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Awards Program, the Capital Magnet Fund, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $36.5 billion in tax credit authority to Community Development Entities through the New Markets Tax Credit Program.

Melanie Calahan

Director of Marketing

Montana CDC

229 E. Main St.

Missoula, MT 59802

406.728.9234 ext 216

406.542.6671 fax

http://www.mtcdc.org

Dollars into Difference