Author: Press Room

Economist Barkey Gets Award

20 July 2022
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A University of Montana director recently received the most prestigious award from a national association of regional economic research centers.

Patrick Barkey, director of UM’s Bureau of Business and Economic Research, received the Thayne Robson Award from the Association for University Business and Economic Research (AUBER). The award is the highest honor that AUBER awards to an individual for longtime commitment and service to the organization. Award winners must be economic and public policy leaders in their state.

Barkey is the past president of AUBER, has served as Secretary-Treasurer for more than a decade and has been a member of the organization’s board of directors.  “I am humbled to receive this honor, especially considering the outstanding AUBER leaders who have preceded me,” Barkey said.

“No one has been a stronger advocate of AUBER than Pat,” according to John Deskins, AUBER’s president and director of West Virginia’s Bureau of Business and Economic Research. “He has devoted years to working to make the community stronger, and we owe him so much for his dedicated service. He is a great asset to applied economics research centers nationwide.”

Economic Update

20 July 2022
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The Bureau of Business and Economic Research (BBER) will hold its mid-year economic update in Billings on August 2, 7-8:30 am, at the DoubleTree.

It has been an eventful year for the economy already. The torrid pace of economic growth of last year has given us surging inflation, very tight labor markets, and empty store shelves in 2022. And now the prospect of the Federal Reserve finally taking action against inflation to cool down growth has spooked financial markets and awakened recession fears. Are those fears overblown? These will be among the subjects discussed during its program, which will also be held in several other major Montana cities.

The event will feature Dr. Patrick Barkey, Director of the Bureau of Business and Economic Research since 2008 at the University of Montana. Dr. Barkey has been involved with economic forecasting and policy research for more than 30 years, in both the private and public sectors. Before coming to Montana he served as Director of the Bureau of Business Research at Ball State University in Indiana for fourteen years. His recent research has been on the economic impact of energy development, the property tax treatment of the telecommunications industry and the economic impact of trade with Canada.

Also among the speakers will be Simona Stan, Professor of marketing at the University of Montana. Since last year, she is also the Wilson Logistics Faculty Fellow. Stan has a Ph.D. in Marketing from the University of Missouri and a Bachelor’s Degree in Mechanical Engineering from the University of Sibiu, Romania. She taught for five years at the University of Oregon. Prior to her academic life, she was a production engineer and manager in Romania. At UM, she teaches Logistics and Transportation and Global Supply Chain Management along with a selection of marketing courses at undergraduate and master level. Her current research interests are in global logistics and supply chains, sales, and services marketing.The program will be presented in Bozeman on August 2; Great Falls, August 3; Missoula, August 4; and Kalispell, August 4. For more information contact the BBER’s website www.bber.umt.edu

Businesses Get a Break in Filing Fees

20 July 2022
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The fee to register a Limited Liability Companies (LLC) or a corporation in Montana has been reduced by the Montana Secretary of State Christi Jacobsen from $70 to $35. In 2021 the Secretary of State registered 29,000 new LLC’s.

The reason the fee can be reduced, said Jacobson, is “due to increased efficiencies in our office.”

Jacobsen stated that she wants businesses in Montana to know that they are supported and appreciated. She said that her office is looking forward “to seeing our record business growth continue for years to come.”

To register a business, go to sosmt.gov/business. Information is also availability regarding different kinds of business structures and what is required by government of each.

Businesses Can’t Pay Rent

20 July 2022
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More than a third of small businesses can’t pay rent, newly released data shows.

The small business network Alignable released new survey results that found that 35% of U.S. small business owners “could not pay their rent in full or on time in June.”

“Most small business owners attribute this worsening situation to record-breaking inflation, which includes escalating gas, labor, and supply costs,” Alignable said. “Simply put, there’s less money available to pay the rent.”

According to the survey, rent increased for 48% of small businesses this month. Meanwhile, rent delinquencies have continued to increase all year.

“This is the highest rate of U.S. rent delinquency among SMBs this year,” the group said.

Another key factor hurting small businesses are gas prices, which hit record highs last month, averaging more than $5 per gallon for regular gas, before dipping down slightly. Diesel gas prices also hit record highs in June.

“Even more alarming, 63% of transportation SMBs couldn’t afford June rent, up 41% from May,” Alignable said. “It’s no shock to learn that 76% of this group said gas prices have had a ‘very significant’ negative effect on their businesses.”

Illinois and Texas lead the nation in rent delinquencies.

“States with the highest rent delinquency rates include: IL (44%), TX (44%), [and] NJ (39%),” Alignable said. “While they’re still high, rates dropped in MA, NY, FL and CA.” The report comes as other survey data show that soaring inflation is a top concern for small businesses. As The Center Square previously reported, the survey found 51% of small businesses fear that rising prices could “force them to close their businesses within the next six months.” In particular, restaurant owners are concerned with 72% saying they are worried.

That concern is not new. An April poll from NEXT Insurance reported that many small businesses have considering shutting down because of inflation.

“According to a new survey by NEXT Insurance, small business owners across the United States are frustrated and stressed about inflation and the state of the economy,” the group said. “More than one-third have considered shutting down in the last 12 months. As prices continue to rise and supply chains continue to falter, many small business owners have been forced to work longer hours, raise prices, and even cut their own salaries just to stay afloat, our survey found. And a majority of small business owners believe the pain isn’t over.”

Billings Building Permits –    Commercial and New Residential 7-15-22

20 July 2022
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Commercial

CBRE 1st South LLC/ Lennick Bros. Roofing & Sheetmetal, 3050 1st Ave S, Com Fence/Roof/Siding, $9,500

Lee’s Development LLC/ Lees Construction & Development LLC, 1964 Home Valley Dr, Com New Other, $1,560,000

McCall Development/ McCall Development, 1686 St George Blvd, Com New Townhome Shell, $800,000

Target Corp T-1333, 403 Main St, Com Remodel $10,000

School District #2/ Empire Roofing Inc, 2201 St Johns Ave, Com Fence/Roof/Siding, $125,633  

School District No 2/ Empire Roofing Inc, 729 Parkhill Dr, Com Fence/Roof/Siding, $173,906  

School District #2/ Empire Roofing Inc, 3723 Central Ave, Com Fence/Roof/Siding, $230,767  

School District #2/ Empire Roofing Inc, 1441 Governors Blvd, Com Fence/Roof/Siding, $528,384

Bottrell Family Investments/ Jones Construction, 3545 Gabel Rd, Com New Other, $1,500,000

Sean Lynch/1111 Presents, 1625 2nd Ave N, Com New Other, $2,200,000

1111 Presents, Sean Lynch, 1625 2nd Ave N, Com New Other, $0.00

McCall Homes/ McCall Development, 1670 St George Blvd, Com New Townhome Shell, $800,000

Weber Properties LLC/ Jones Construction, Inc, 1180 S 29th St W, Com New Warehouse/Storage, $950,000

Rimrock Foundation/ Dick Anderson Construction, 1300 6th Ave N, Com Remodel, $500,000

Americo Real Estate Company/ Americo Real Estate Construction, 1515 Grand Ave, Com Remodel $100,000

Northern Plains Resource Counc, 220 S 27th St, Com Remodel, $20,000

Mojave Investments LLC/ Beartooth Holding & Construction, 525 Henry Chapple St, Com Remodel, $218,000

Residential

McCall Homes/ McCall Development, 1858 St Paul Ln, Res New Single Family, $153,014

Image Builders/ Doreen Manley, 4212 Creekwood Dr, Res New Single Family, $800,000

Had Construction/ Had Inc, 1936 Bonita Circle,  Res New Single Family, $276,349

Infinity Home LLC/ Infinity Home LLC, 1024 Beringer Way, Res New Single Family, $418,446

McCall Homes/ McCall Development, 1876 St Paul Ln, Res New Single Family, $257,002

Thompson, Josephine L/ Formation Inc, 920 Vineyard Cir, Res New Single Family, $407,347

McCall Development Inc/ McCall Development, 1936 Annas Garden Ln, Res New Single Family, $314,329

McCall Development/ McCall Development, 1690 St George Blvd, Res New Townhome, $0.00

McCall Development/ McCall Development, 1694 St George Blvd, Res New Townhome, $0.00

McCall Development/ McCall Development, 1686 St George Blvd, Res New Townhome, $0.00

McCall Development/ McCall Development, 1698 St George Blvd, Res New Townhome, $0.00

Blain, Bridger/ Elevated Home Crafters Inc, 555 Park Ln, Res New Accessory Structure, $25,000

McCall Homes/ McCall Development, 1686 St George Blvd, Res New Accessory Structure, $42,240

McCall Development/ McCall Development, 1694 St George Blvd, Res New Accessory Structure, $42,240

McCall Homes/ McCall Development, 1670 St George Blvd, Res New Accessory Structure, $42,240

McCall Development/ McCall Development, 1870 St Paul Ln, Res New Accessory Structure, $23,232

South Pine Design/ South Pine Design, 5217 Grass Mountain Rd, Res New Single Family, $400,000

Infinity Homes/ Infinity Home LLC, 866 El Rancho Dr, Res New Single Family, $237,278

4 Mt Homes Inc/ 4 Mt Homes Inc, 945 El Rancho Dr, Res New Single Family, $207,920

Parks, Trent & Kaycee/Billings Best Builders, 2259 Gleneagles Blvd, Res New Single Family, $0.00

McCall Development/ McCall Development, 1864 St Paul Ln, Res New Single Family, $224,474

McCall Homes/McCall Development, 6158 Johanns Meadow Ln, Res New Single Family, $283,672

McCall Development/ McCall Development, 1870 St Paul Ln, Res New Single Family, $220,75

McCall Development Inc/ McCall Development, 6099 Northstead Ave, Res New Townhome $0.00

McCall Development Inc/ McCall Development, 6099 Northstead Ave, Res New Townhome, $0.00

McCall Development Inc/ McCall Development, 6099 Northstead Ave, Res New Townhome, $0.00

McCall Development Inc/ McCall Development, 6105 Northstead Ave, Res New Townhome, $0.00

McCall Development Inc/ McCall Development 6107 Northstead Ave, Res New Townhome $0.00

McCall Development Inc/ McCall Development, 6099 Northstead Ave, Res New Townhome, $0.00

McCall Homes/McCall Development, 1670 St. George, Res New Townhome $0.00

McCall Homes/ McCall Development, 1674 St George, Res New Townhome $0.00

McCall Homes/ McCall Development, 1678 St George, Res New Townhome, $0.00

McCall Homes/ McCall Development, 1682 St George, Res New Townhome, $0.00

Build American, Buy American Month of Action

20 July 2022
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By Aikta Marcoulier, SBA Region Eight Administrator

During July, the U.S. Small Business Administration (SBA) will kick off its Build America, Buy American month of action to highlight the administration’s commitments to America’s small businesses, entrepreneurs, and startups and highlight the benefits of the president’s bipartisan infrastructure law that will create opportunities for small manufacturers and contractors.

As Montana and the nation recovers from the pandemic, and supply chain issues, the federal government must begin to level the playing field for small manufacturing firms wanting to scale up, expand, and compete globally.  As I visit local communities throughout the Rocky Mountain region, I am seeing more jobs, more hope, and something else more important: the rebirth of pride that comes from buying American.

Montana is a hub for small manufacturers. One example is Hi Country Snack Foods, which is based in Lincoln. Hi Country is the largest employer in the county employing 50 full time people. The business started as a beef jerky company forty years ago, but under the ownership of Travis Byerly the business has expanded into new products lines including a variety of flavored jerky, and specialty seasonings.  Byerly also operates the Hi-Country Trading Post which is packed full of made in Montana products.

The SBA’s mission is to assure there is an equitable federal procurement strategy that prioritizes small, disadvantaged businesses which will increase competition and rebuild our economy from the bottom up and the middle out. The SBA is collaborating with an array of federal agencies to take “shopping small” to a whole new level by transforming how the U.S. government-the world’s largest buyer-spends more than $560 billion of America’s tax dollars on goods and services each year.

To assist businesses with planning, strategy, and contracting, the SBA has various partners including local Procurement Technical Assistance Centers (PTACS) to assist small businesses. President Biden laid out his vision to open more doors to federal contracting with an ambitious goal: Increase the share going to small, and disadvantaged businesses by 50 percent by 2025. Buying from small, and disadvantaged businesses will leverage the federal government’s purchasing power to reestablish domestic supply chains and American made products – using market growth opportunities to strengthen our nation’s industrial base.

Included in these reforms is an effort to make certain that “category management,” a government-wide initiative to strategically source commonly purchased goods and services, does not shut out small businesses. We want to make it easier for more small businesses owned by people of color, women, and veterans, to do business with the federal government. The administration has directed over 40,000 federal contracting officers across government to spend tens of billions of dollars more with small, disadvantaged businesses.

The  Infrastructure Investment and Jobs Act’s $1.2 trillion created an enormous opportunity for small construction and service firms.  The SBA stands ready to support these businesses with bonding capacity, access to capital, and the ability to subcontract with large businesses to get their fair share of the contracting pie. We must ensure all taxpayer dollars are being used to fortify entrepreneurship, innovation, and domestic supply chains, and in the process strengthen our democracy by creating equitable pathways to the American dream.

Annual Petroleum Lunch August 31

20 July 2022
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The Montana Petroleum Association will hold its annual meeting in Billings on August 30 and 31, at the DoubleTree Hotel. This year the event will feature Bruce Larsen, President and Chief Executive of Kraken Resources, as speaker at the annual Petroleum Industry Appreciation Day Luncheon, to which the public is invited.

Larsen has 20 years of oil and gas exploration and production experience specializing in business development, resource identification, geologic modeling, and operational geology. Before forming Kraken, Larsen was Executive Vice President of Ursa Resources Group LLC, where he led the company’s Williston Basin entry, developed the company’s Bakken Shale geologic model, and oversaw leasing of 120,000 net acres. Prior to Ursa, Larsen worked at Legend Natural Gas where he evaluated acquisition opportunities in nearly every onshore U.S. basin.

The Appreciation Day Luncheon will be on Wednesday, August 31 from 11:30 am to 1:30 pm. following a forenoon program of presenters and panel discussions about the status of the industry.

The event also includes a golfing and a barbecue dinner at the Pryor Creek Golf Course on Aug. 31.

For more information and costs contact mpa@montanapetroleum.org .

75% of $800 billion Paycheck Protection Program didn’t Reach Employees

20 July 2022
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By Joe Mueller, The Center Square

Taxpayers paid $4 for every $1 in wages and benefits received by workers in jobs saved by the federal government’s pandemic Paycheck Protection Program (PPP), according to a new study by the Federal Reserve Bank of St. Louis.

The Fed study also found PPP didn’t support jobs at risk of disappearing, and money flowed disproportionately to wealthier households.

“The PPP was a very large and very timely fiscal-policy intervention, saving about 3 million jobs at its peak in the second quarter of 2020 and distributing $800 billion well within two years of the onset of the COVID-19 crisis,” authors William Emmons and Drew Dahl concluded in their study, “Was the Paycheck Protection Program Effective?”

“But it was poorly targeted, as almost three-quarters of its benefits went to unintended recipients, including business owners, creditors and suppliers, rather than to workers. Due to differences in the typical incomes of those varied constituencies, it also ended up being quite regressive compared with other major COVID-19 relief programs, as it benefited high-income households much more.”

When COVID-19 pandemic-induced executive orders forced small businesses to stop or reduce operations, the PPP was created as a temporary program under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Forgivable loans began on April 3, 2020, one week after President Donald Trump signed the legislation and three weeks after a national emergency was declared. The low-interest loans could be made without collateral for up to $10 million to businesses with fewer than 500 employees. The loans were forgivable if businesses maintained employment and wages at pre-pandemic levels for two to six months following acceptance of the funds.

The Small Business Administration reported 90% of the nearly $800 billion in PPP loans were forgiven by last month, according to the study.

The Fed report quoted research published in the Journal of Economic Perspectives estimating PPP loans saved 2.97 million jobs per week in the second quarter of 2020 and 1.75 million per week during the fourth quarter of 2020. The research also found the cost per job saved for one year was $169,000 to $258,000. The average wage and benefits for a small business employee was $58,200 in 2020.

Small business owners spent $3 out of every $4 in PPP to pay suppliers and meet other expenses, according to the Fed report. The research found that 72% of PPP funds went to households with incomes in the top 20% of the national distribution. Comparatively, 20% to 25% of the federal government’s unemployment insurance went to households in the top 20%. Approximately 10% to 15% of stimulus checks – up to $1,200 per adult and $500 per child – went to households in the top 20%.

3 More Counties Declared For Disaster Relief

20 July 2022
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Governor Greg Gianforte announced the State of Montana has added three additional counties to the presidential major disaster declaration for Montana: Yellowstone, Treasure, and Sweet Grass. Six counties in southern Montana are now eligible for aid through FEMA’s Public Assistance Program.

“I appreciate Administrator Deanne Criswell and her team at FEMA for approving the state’s request to add Sweet Grass, Yellowstone, and Treasure counties to the presidential major disaster declaration for Montana,”

On June 16, Gov. Gianforte announced the state secured a major disaster declaration for severe flooding. The initial declaration applied to Park, Stillwater, and Carbon counties.The federal aid that accompanies the major disaster declaration supplements state and local resources being used to offset widespread damage caused by the flooding. Specifically, the FEMA Public Assistance Program provides supplemental federal grant assistance for debris removal and the restoration of disaster-damaged, publicly owned facilities, and specific facilities of certain private nonprofit organizations.

CIS Agreement Win For Montana Meat Processors, Ranchers

6 April 2022
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The Montana Farm Bureau was thrilled to learn that the Montana agreement for the Cooperative Interstate Shipping (CIS) program has been finalized by the United State Department of Agriculture’s Food Safety Inspection Service. Authorized in 2008 and launched by USDA in 2012, the CIS program permits selected state-inspected establishments that comply with federal inspection requirements to ship their product in interstate commerce. Montana joins only nine other states approved and certified for the CIS program.

During the 2021 Montana Legislative Session, there was extensive discussion regarding the expansion of meat processing capacity, as well as value added opportunities for all segments of agriculture. The Montana Legislature elected to invest American Rescue Plan Act (ARPA) funds and regular state managed dollars into many different projects including meat processing, addressing the need for more meat processing capacity.

At MFBF’s request, the Montana Legislature allocated funding and directed the Department of Livestock could pursue CIS certification. This action supported value added agriculture even further, by helping give ranchers expanded access to consumer markets outside of Montana’s borders.

“I first learned about the Cooperative Interstate Shipping (CIS) program in 2020, when our former MFBF president, Hans McPherson and I were participating on American Farm Bureau’s Livestock Working Group, which was tasked with looking into ways to improve state and federal laws and regulations for the benefit of cattle ranchers across the country,” said MFBF Senior Governmental Affairs Director Nicole Rolf.

“The CIS program preserves and strengthens state meat inspection programs and expands existing plants’ abilities to market meat across state lines, giving cattle ranchers more marketing opportunities and broader markets,” noted Rolf. “The timing just seemed to be right for Montana, where we are lucky to have a healthy blend of custom exempt, state inspected, and federally inspected plants already. When the Montana Legislature decided to pursue this USDA-FSIS approved program with the goal of expanding marketing capabilities for Montana ranchers, MFBF was very appreciative.”

Montana State Veterinarian Marty Zaluski said the agreement benefits the state two-fold. “It no longer restricts our processors from selling across our borders, as they will have the same privileges as USDA-inspected plants. In addition, the CIS certification means the program is funded so the inspection service does not cost the plant any more money. Having a state inspector at a plant is a cost share with the USDA of 50/50, meaning fifty percent comes from the federal government and the Montana General Fund matches it. With CIS, because we have to do things exactly as the federal inspectors do, the USDA increases their share to 60 percent.”

In a Department of Livestock questionnaire on becoming CIS certified, Zaluski noted that 15 plants expressed interest. “That’s nearly 50 percent of all our 31 state-inspected establishments, which includes state-inspected processing and slaughter facilities. We will be meeting with the FSIS regarding how to bring these state-inspected packing plants on board,” said Zaluski. “We believe the FSIS plans to visit those plants to work out the details on how to do an inspection to achieve CIS certification.”

“MFBF is ecstatic to see this program signed into existence for our state,” concluded Rolf.  “As state-inspected meat plants opt in to the program, ranchers seeking to market beef directly to consumers will have one more avenue to do so, no matter where in the country those customers and potential customers live. We appreciate the support from the Governor, the work of the Department of Livestock, and the support from the Montana Legislature to get this done in such a timely fashion.”