MBAC Loan Programs
Micro Loan Program
Eligibility:
A micro business is defined as a company with annual gross revenues of $1 million or less and ten or fewer employees
Use of Proceeds:
Machinery and equipment
Inventory
Working capital
Debt consolidation
Maximum Loan Amount: $100,000
Rates: 9% plus risk factors; risk factors based on credit, collateral coverage, financial position, personal investment, and management ability Rate is fixed for life of loan 2% closing fee plus all costs of filing and/or recording
Terms: All loans have a second or third year balloon payment. Amortizations are as follows 5 to 7 years for machinery and equipment 3 to 5 years for inventory, working capital or consolidation In some cases loans can go up to a ten year amortization depending on the type of asset being financed
Collateral Requirements: Collateral coverage of 1.25:1 on a discounted basis for existing assets Purchase money security on assets acquired with loan proceeds Personal guaranty
Other: Minimum 5% equity investment from borrower
City and County Loan Program
Eligibility:
Business must be located within the City of Helena, Lewis and Clark or Broadwater County
Use of Proceeds:
Machinery and equipment
Inventory
Working capital
Debt consolidation
Real Estate
Maximum Loan Amount: Broadwater County businesses are limited to $50,000 per business. City of Helena and Lewis and Clark County businesses to the amount available in each fund
Rates Prime plus risk factors; risk factors based on credit, collateral coverage, financial position, personal investment, and management ability Rate is fixed for life of loan 2% closing fee plus all costs of filing and/or recording
Terms All loans have a second or third year balloon payment. Amortizations are as follows: 3 to 5 years for inventory, working capital or consolidation 5 to 7 years for machinery and equipment 15 to 20 years for real estate
Collateral Requirements: Collateral coverage of 1.25:1 on a discounted basis for existing assets Purchase money security on assets acquired with loan proceeds Personal guaranty
Other: Minimum 5% equity investment from borrower
Intermediary Re-lending and Board of Investments Program
Eligilibity: Business must be located in a rural area of the MBAC service area or not be connected to public water or sewer systems
Loan must have a $1 for $1 match from another source
Must meet State Historical Preservation Office approval
Use of Proceeds:
Machinery and equipment
Inventory
Working capital
Debt consolidation
Real Estate
Maximum Loan Amount: $150,000
Rates: Prime plus risk factors; risk factors based on credit, collateral coverage, financial position, personal investment, and management ability Rate is fixed for life of loan 1% closing fee plus all costs of filing and/or recording
Terms: All loans have a second or third year balloon payment. Amortizations are as follows: 5 to 7 years for machinery and equipment 3 to 5 years for inventory, working capital or consolidation 15 to 20 years for real estate Collateral Requirements Collateral coverage of 1.25:1 on a discounted basis for existing assets Purchase money security on assets acquired with loan proceeds Personal guaranty
Other: Minimum 5% equity investment from borrower
Economic Development Administration and Board of Investments Program
Eligibility:
Business must be located in Gateway designated Economic Development District Loan must have a $2 for $1 match from another source
Use of Proceeds:
Machinery and equipment
Inventory
Working capital
Debt consolidation
Real Estate
Maximum Loan Amount: Based on project and amount available in the fund Rates Prime plus risk factors; risk factors based on credit, collateral coverage, financial position, personal investment, and management ability Rate is fixed for life of loan 2% closing fee plus all costs of filing and/or recording
Terms: All loans have a second or third year balloon payment. Amortizations are as follows: 5 to 7 years for machinery and equipment 3 to 5 years for inventory, working capital or consolidation 15 to 20 years for real estate
Collateral Requirements: Collateral coverage of 1.25:1 on a discounted basis for existing assets Purchase money security on assets acquired with loan proceeds Personal guaranty Minimum 5% equity investment from borrower
Gateway Revolving Loan Fund
Eligibility:
Business must be located in the MBAC service area
Use of Proceeds:
Machinery and equipment
Inventory
Working capital
Debt consolidation
Real Estate
Maximum Loan Amount: Based on project and amount available in the fund Rates Prime plus risk factors; risk factors based on credit, collateral coverage, financial position, personal investment, and management ability Rate is fixed for life of loan 2% closing fee plus all costs of filing and/or recording
Terms: All loans have a second or third year balloon payment. Amortizations are as follows: 5 to 7 years for machinery and equipment 3 to 5 years for inventory, working capital or consolidation 15 to 20 years for real estate
Collateral Requirements: Collateral coverage of 1.25:1 on a discounted basis for existing assets Purchase money security on assets acquired with loan proceeds Personal guaranty Other Minimum 5% equity investment from borrower
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