Contributions Capitalize EDA Business Loans to $2 million
Big Sky EDC has been awarded a $1.8 million grant from the U.S. Federal Economic Development Administration (EDA). Combined with $200,000 contributed by Big Sky EDC, the total $2 million will capitalize a $2 million Revolving Loan Fund (RLF) to be administered by Big Sky EDC for eligible small businesses located in Yellowstone County.
This new EDA RLF will provide a financing niche not only for those businesses impacted by the coronavirus pandemic, but also contribute to Big Sky ED’s continued effort to diversify the local economy. The funds will help stabilize and diversity the local economy by targeting lending to new start-up, recovering, or expanding businesses as well as stabilizing existing businesses.
Use of the RLF will be a public/private partnership within the lending community to fill financing gaps primarily brought on by the coronavirus pandemic. The EDA RLF will serve several purposes. Funds will be for commercial purposes only and used for working capital, equipment purchases and assistance with commercial real estate acquisitions.
Most for-profit small businesses located in Yellowstone County, or looking to relocate to Yellowstone County, along with business start-ups, will be eligible. Loans will range from $10,000 to a maximum of $250,000 in certain circumstances. It is EDC’s objective to assist as many small businesses as possible. Rates and terms will be competitive and depend on the use of the loan proceeds. These funds are not to be used to replace conventional commercial financing, but rather to be used in partnership with our local lenders and to fill that financing gap not completely available from the private sector.
“Big Sky EDC is very excited at the opportunity to provide this new financing option to assist with the recovery and expansion of our small business community!” – Brandon Berger, Director of Big Sky Finance at BSED.
“This gives BSED additional tools to support entrepreneurs and business growth—which is at the heart of our mission. It is all about building momentum in our economic recovery, and beyond.” – Steve Arveschoug, Executive Director. For more information please reference the recent release – U.S. Department of Commerce Invests $1.8 Million in CARES Act Recovery Assistance to Capitalize Revolving Loan Fund to Serve Businesses in Yellowstone County, Montana.