How Do You Access MBAC's Business Finance Program?

Montana Business Assistance Connection’s mission is to retain and create jobs in Broadwater, Meagher, and Lewis and Clark, and northern Jefferson Counties. It does this by providing asset based financing coupled with free professional management assistance to qualifying clients.

MBAC’s lending function is to provide an alternative choice for entrepreneurs and new or existing business owners who do not qualify or have access to traditional commercial bank funds. Also, we may make your business a loan in conjunction with a traditional commercial bank.

The following are criteria you need to consider when applying for a MBAC loan:

• You must have been declined or referred by a traditional commercial bank
• Loan closing fees are 2% of the loan amount, with a minimum of $250, 1% for USDA funds
• The loan amount is determined by your need and eligibility; this is identified through your business plan or cash flow analysis
• Applicant must contribute a minimum of 5% to the project
• The loan term is based on your use of the loan funds
  • Proper debt structure is one key to profitability
• The fixed interest rate will be determined by a combination of factors but will never fall below the current wall street prime plus 3% (we offer a 0.25% discount if you sign up for ACH) unless
  • You are applying for an IRP or CDBG loan through a local government entity
  • You have excellent credit, repayment ability and collateral
• You must complete and sign a MBAC loan application. A completed loan application includes:
  • A non-refundable $50 ($100 for joint applications) loan application fee
  • A signed information release form 
  • Your credit score should be acceptable and include a written explanation of any derogatory marks on your credit report.
    • MBAC staff will assist in reviewing your credit report and can provide assistance in settling adverse items.
  • A written business plan that
    • Includes financial projections for 3 years (the next 12 months and annually for 3 years)
    • Demonstrates adequate repayment ability
    • Includes your personal cost of living expenses and any other sources of income available to assist the business
  • How much money
    • You are requesting and how it will be used 
    • You will be investing in the business; minimum of 5%
  • Other individuals and/or entities will be investing in your business
  • If you are currently in business
    • Financial statements from the past 3 years of operation including the most recent interim financial statements
    • Business tax returns from the past 3 years of operation
  • Personal tax returns from the past 3 years
  • If the application involves the purchase of real estate or equipment: 
    • A recent appraisal/valuation
    • A signed buy/sell or lease agreement
    • Written cost estimate for any proposed construction
  • A list of proposed collateral to secure the loan
    • We may require you to have $1 of collateral value for each $1 borrowed
    • For property with stated value of less than $250,000 we will require a market analysis
    • For property with stated value greater than $250,000 we will require an appraisal (you are responsible for the cost) 
    • If providing inventory, equipment, furniture/fixtures, vehicles, or other items as collateral, please provide a list of the items with an estimated value.
  • A list of people that may provide a personal guarantee for your loan if required 
  • An estimate of how many jobs your business will create or retain? 
• You must be prepared to meet with MBAC staff  to review your business situation on a regular basis
• You may be required to attend training classes to improve your business management skills
• We may require you to re-apply at a bank after 2 years as a MBAC client

We want you to succeed

We expect you to communicate with us in good times and bad
We cannot help if we are not aware and have no information

To apply for a MBAC loan contact Sheli at 447-1513