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Interesting financing option for any Montana manufacturer that is considering expansion.

April 30, 2016 /

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Dorsey & Whitney - An International business law firm, applying a business perspective to clients' needs in Missoula, Montana and beyond.

As I understand it, it will require more paperwork but will result in lower interest rates.

IDB Eligibility Screening Assessment – Key and Explanations http://www.matr.net/files/IDBEligibilityScreeningAssessmentKEYRevised.pdf

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IDB Caps
Amounts to Identify/Watch

There is a $10 million cap for tax-exempt bonds (loaned to principals of company, related parties, or users of the facilities) in a given municipality/county. (The project itself can exceed $10 million, as long as capital expenditures fit within the $20 million limit.)

There is a $20 million cap on capital expenditures by borrowers and related parties in the 3-year look forward 3-year look back period in a given municipality/county.

There is a $40 million cap on tax-exempt bonds issued for principals and related parties within and without the municipality/county. Example: a company with a subsidiary with majority ownership borrows bonds proceeds of $35 million in Poughkeepsie. Our Montana company borrows $10 million. In such an instance the $40 million cap would be exceeded.

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Please contact Michelle Barstad at the Montana Facility Finance Authority with any questions.

Michelle Barstad Executive Director

Phone: 406-444-0259

2401 Colonial Drive, 3rd Floor (59601)

Fax: 406-444-0019

P.O. Box 200506

[email protected]

Helena, MT 59620-0506

http://www.mtfacilityfinance.com

Respectfully,

Paddy Fleming