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.
- 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:
- Loan Application
- Resolution to Borrow
- Information Release Form
- Business Plan (Businesses < 2 years old) or One-Page Project Summary (>2 years old)
- Business financial statements for the last 3 years
- Income Statement
- Balance Sheet
- Business tax returns for previous 3 years
- Current (within 60 days) financial statements
- Income Statement
- Balance Sheet
- Two years projected cash flows with assumptions
- Business Debt Schedule
- Legal Entity Documentation (Articles of Incorporation, Bylaws, Articles of Organization, etc), including local business license.
- Personal Information (for each 20% or greater owner)
- Project Cost Documentation
- For Projects Involving Real Estate – Environmental Checklist or Phase I/Phase II environmental site assessment
- Turndown letters from 2 Banks
A $175 administrative fee must be included with each application.
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 Banner DeMers, Director of Loan Services, at 406-496-3172 or email at firstname.lastname@example.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.
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.
For frequently asked questions and links to information regarding access to capital and loan programs. Click here for more information on how to access services to help your small business grow.
Small Business Administration (SBA) Loan Guarantee Program
Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions. For more information, please visit the SBA website.
Export-Import Bank of the United States
The Export-Import Bank of the United States is the official export credit agency of the United States. Ex-Im Bank’s mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im Bank enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy. For more information, please visit the EXIM website.
The Butte Local Development Corporation has access to venture capital and angel networks for early stage investments. These firms/individuals are willing to provide an entrepreneur with seed capital in hopes of gaining a return when the business takes off. The BLDC has a substantial network of experienced entrepreneurs and capital ready to assist new ventures. For more information on this type of capital, please call us at 406-723-4349.