BLDC Loan Fund Program

Access to capital/credit is one of the most important issues of interest to businesses.

The BLDC serves as the leading point of contact for individuals and companies wishing to save, expand, start or locate a business in Butte-Silver Bow area.  The BLDC will work with the public and private sector to provide or coordinate business start-up, retention, expansion and recruitment services including technical assistance, planning assistance, or financial assistance as required.

The Butte Local Development Corporation owns and operates its own Revolving Loan Fund which is an excellent financing option available for Butte businesses.  The purpose of the BLDC’s loan program is to encourage and accelerate quality job creation, retention and recruitment of businesses to Butte Silver Bow.  Our financing is used primarily as GAP financing in participation with your financial institution.

Eligible Uses

• Business acquisitions, construction, conversion, enlargement, repair, modernization, or development costs
• Purchasing and development of land, easements, rights-of-way, building, facilities, leases, or materials
• Purchasing of equipment, leasehold improvements, machinery or supplies
• Transportation services
• Start-up costs and working capital
• BLDC will only provide financing that is otherwise not available
• May be used as an incentive to recruit new business to the area

BLDC Loan Fund Policies

• Loans will only be made to businesses located in Butte Silver Bow
• 2% loan fee is assessed once the loan closes
• Borrowers are responsible for appraisals, title insurance, environmental engineering, preparation of financial statements, and other professional services as needed
• 20% equity preferred, but in no case lower than 10%
• Rates and Terms
  • 1-2% over Bank Rate
  • Working Capital – 7 years
  • Equipment – 10 years maximum (based on the life of the equipment)
  • Real Estate – 10 to 20 years
• Bank participation is preferred
• Financing may be subordinated to participating lender
• Sufficient cash flow and positive net income must be demonstrated by Borrower
• Borrowers may be required to obtain business counseling services by our Small Business Development Center partner at Headwaters RC&D.

BLDC Loan Application Forms

For forms regarding application for a loan, a typical business loan checklist and other information, please click the links below to view/download the PDF:

To submit an application for consideration of funding please provide the following materials:

1. Loan Application
2. Resolution to Borrow
3. Information Release Form
4. Business Plan (Businesses < 2 years old) or One-Page Project Summary (>2 years old)
5. Business financial statements for the last 3 years
   1. Income Statement
   2. Balance Sheet
6. Business tax returns for previous 3 years
7. Current (within 60 days) financial statements
   1. Income Statement
   2. Balance Sheet
8. Two years projected cash flows with assumptions
9. Business Debt Schedule
10. Legal Entity Documentation (Articles of Incorporation, Bylaws, Articles of Organization, etc), including local business license.
11. Personal Information (for each 20% or greater owner)
    1. Personal Tax Returns for last 3 years
    2. Personal Financial Statements (within 60 days)
    3. Statement of Personal History
    4. Resumes
12. Project Cost Documentation
13. For Projects Involving Real Estate – Environmental Checklist or Phase I/Phase II environmental site assessment
14. Turndown letters from 2 Banks

If you are unsure if your project qualifies for our loan funds, or if you have any questions regarding the requirements of our application please contact Mike Archer, Director of Capital Solutions, at 406-565-2270 or email at marcher@headwatersrcd.org. Once you have your application materials compiled (digital copies strongly preferred) please email Mike to setup a secure upload folder for your project.

Hard copy files can be brought or mailed to the Butte Local Development Corporation, 65 E. Broadway, 5th Floor, Butte, MT 59701.

To schedule an appointment, call or email Mike Archer at 406.565.2270 or marcher@headwatersrcd.org or Kerry Taylor at 406-533-6777 or ktaylor@bldc.net

For assistance in starting up your business, business plan development, market assistance, financial technical assistance and low-cost training, please visit our Small Business Development Center partner at Headwaters RC&D.