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Montana SBA Office Ranked #1 in the Country
The U.S. Small Business Administration’s (SBA’s) impact on Montana’s mostly rural economy can be felt in every corner of the state and across all 145,552 square miles.
Posted by: The Big Sky Business Journal
Businesses in forty-six of Montana’s fifty-six counties benefited from SBA guaranteed loan financing this past fiscal year (10/1/02 – 9/30/03), boosting economies throughout Sheridan and Flathead Counties, well into Gallatin and over to Yellowstone County. This past year, entrepreneurs in 93 cities and towns throughout the state received a shot in the arm by SBA, fostering job creation and bolstering local economies. Cohagen, MT (population 8), a town where in 1948, the population drastically decreased and most of its buildings disappeared, was even home to an SBA guaranteed loan recipient – bringing a much needed business service to farmers and ranchers in this very, remote area of Montana.
SBA – By the Numbers:
The Montana District Office (MDO) of the SBA is located in Helena, MT and is one of 70 district offices nationwide. With a staff of only fifteen, the MDO serves entrepreneurs by providing financial, management, technical assistance, and training to emerging and established businesses throughout the state. During this past FY, the MDO staff alone counseled and trained 1,762 entrepreneurs. Based on agency performance goals, the MDO ranked #1 out of 70 offices (tied with offices in Arizona and Nevada), this past fiscal year (October 1, 2002 – September 30, 2003). "The MDO staff are very dedicated and capable, and through teamwork reached and exceeded our office goals for FY 2003," said District Director Michelle Johnston.
Montana’s small business community makes up over 97% of businesses statewide, boosting Montana’s economy one small business at a time. The reason SBA’s guaranteed loan program is so successful in Montana is due to the responsiveness of Montana’s lending community to small business. Currently there are 280 approved SBA participating lenders in Montana. This past fiscal year, 102 (or 37%) of those lenders utilized SBA’s guaranteed loan programs. Seventy-eight (or 76%) of the lenders who took advantage of SBA’s guaranteed loan programs were small, independently owned, community banks. "Although 55 (or 54%) of the lenders utilizing our loan programs made only one or two loans during the year, this indicates that SBA’s guaranteed loan programs serve as a widely used tool for lenders, which in turn benefits Montana businesses," said District Director Johnston. "Additionally, the average SBA guaranteed loan size this past fiscal year was $151,151, down from $200,510 a year ago," added Johnston. "This means lenders are stretching their loan dollars, assisting more businesses, and aiding in Montana’s recovery during this economically challenging time."
Following is a summary of the MDO’s guaranteed lending accomplishments for Fiscal Year 2003:
SBA guaranteed 495 loans totaling $78,357,341. Of these loans, 478 for $72,250,341 were made through SBA’s 7(a) Guaranty Loan Program which provides short or long term financing for small business start-up or expansion needs. Seventeen loans totaling $6,107,000 were made through SBA’s 504 Certified Development Company program which provides long term fixed rate financing for land, buildings and equipment.
SBA financed 157 new businesses for $16,711,625. Construction, Building and Contracting, Manufacturing, Wholesale Trade Professional, Scientific and Technical Services, Ambulatory Health Care Services, Food and Drinking Places and Repair and Maintenance firms were among the most frequently financed businesses during FY 2003. Of the 495 loans, 152 loans totaling $16,344,475 were made to women owned businesses, 63 loans totaling $10,146,900 were made to veterans and 28 loans totaling $2,381,000 were made to minority business owners.
(These figures DO NOT include participation in 504 CDC Financing)
Individual Lenders Exceeding $2.0 million:
BANK NAME BANK CITY $ #
Yellowstone Bank Billings $8,079,000.00 55
Mountain West Bank, N.A. Helena $6,515,200.00 21
Montana Community Finance Corporation Helena $6,107,000.00 17
First Citizens Bank of Butte Butte $4,686,300.00 12
First Security Bank Missoula $3,933,600.00 16
Stockman Bank of Montana Billings $2,379,700.00 21
First Interstate Bank Billings $2,182,200.00 13
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