The following are the major state funding sources. Many
of these programs can work in conjunction with each other, BLDC programs,
and private banks to meet financial requirements.
| |
BOI Infrastructure Loan Program
|
BOI Federal Guarantee Purchase
|
BOI Loan Participation
Program
|
BOI VALUE-ADDED PROGRAM
|
| BORROWER |
Any local government on behalf of benefiting business
|
Any business. An approved commercial lender is
required
|
Any business. An approved commercial lender is
required
|
Any value-added business. An approved commercial
lender is required
|
| FUNDING LIMIT |
Minimum $250,000 Maximum $16,666 X # jobs (min.
15 jobs)
|
The amount of the federal guarantee
|
Approximately $64 million for any one project
(up to 80 % or 70 % BOI, 20% or 30% lender depending on size of
loan)
|
Minimum $250,000 based on creation or retention
of 10 jobs. Maximum loan is approximately $6.4 million (based
on 1% of Coal Tax Trust) (75% BOI, Lender 25%)
|
| USE OF FUNDS |
Infrastructure for a businesses creating at least
15 basic sector jobs. Includes streets, sewers, waterlines, natural
gas lines, electric, telecommunication lines, etc.
|
Working capital, equipment, and real property
|
Working capital, equipment, and real property
|
Working capital, equipment, and real property
|
| INTEREST RATE |
Fixed quote weekly; eligible for interest rate
reduction based on job creation (5 basis pts per job created up
to a maximum of 2.5% for 50 jobs)
|
Fixed quote weekly; rate reduction available 5
basis pts per job on for-profits up to 2.5%, non-profit subject
to Board approval
|
Fixed quote weekly; rate reduction available 5
basis pts per job on for-profits up to 2.5%, non-profit subject
to Board approval
|
BOI: 2% 1st 5 yrs for 15 jobs; 4% 1st 5 yrs for
10-15 jobs; 6% 2nd 5 yrs; BOI’s posted rate the 3rd 5 yrs
+.5% service fee for lender. Lender: National prime rate with
a floor of 6% and ceiling of 12%, adjusted annually
|
| TERM |
Maximum 25 years
|
Working capital:3-5 yrs Equip.: 5-7yrs
Real Estate:10-20 yrs
|
Working capital: 3-5 yrs Equipment: 5-7 yrs
Real estate: 10-25 yrs
|
15 yrs
|
| COLLATERAL |
Lien on infrastructure assignment of fees charged
|
Based on the requirements of the agency providing
the guarantee
|
First lien on BOI's share (shared first w/ commercial
lender)
|
First lien shared proportionally between BOI and
Lender
|
| EQUITY |
N/A
|
25-35% of total cost, based on project
|
25-30% of the lower of cost or appraisal
|
Minimum 25% of total loan amount
|
| PERSONAL GUARANTEES |
Based on business creating jobs
|
Yes
|
Based on the borrower (normally yes)
|
Yes, shared proportionally with lender
|
| CREDIT CRITERIA |
Based on business benefiting
from project
|
Based on borrower and project
|
Based on borrower and project
|
Based on borrower and project
|
| LEVERAGE |
None
|
Borrowers may obtain additional funds from any
other source
|
Borrowers may obtain additional funds from any
other source
|
Borrowers may obtain additional funds from any
other source
|
| TIME |
20 working days after bank submission, depending
on application completeness^
|
5 working days after bank submission, depending
on application 's completeness
|
20 working days after bank submission, depends
on application's completeness^
|
20 working days after bank submission, depends
on application's completeness^
|
| QUALIFICATIONS |
Local governments only, on behalf of job-creating
business
|
For-profit or non-profit Montana business
|
For-profit or non-profit Montana businesses
|
For-profit or non-profit Montana businesses
|
| BENEFITS |
Businesses receive 100% state income tax credit
for all infrastructure fees paid to amortize principal and interest
|
Fixed-rate financing on guaranteed portion for
the term of the loan
|
Fixed-rate financing on BOI's share
|
Low, fixed-rate financing on BOI's share; total
$50 million authorized for program; Dividend and bonus payments
not allowed to investors. No prepayment penalty.
|
| FEES |
None
|
1/4% fee which is refunded at time of funding
|
1/4% fee which is refunded at time of funding
|
None
|
