Butte Local Development Corporation (BLDC) Loan Programs

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

• Bank denial letter required

• 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 the 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

 

Application Fee

A $175 administrative fee must be included with each application.