Author: Press Room

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.”

660 Investigations for COVID Fraud

6 April 2022
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IRS Criminal Investigation (IRS-CI) released investigational statistics about COVID-related fraud investigations conducted by the agency over the past two years.

The agency investigated 660 tax and money laundering cases related to COVID fraud, with alleged fraud in these cases totaling $1.8 billion. These cases included a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.

“The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law nearly two years ago as a safety net for Americans in light of an unprecedented health crisis. Unfortunately, even during times of crisis, criminals pop their heads out to look for ways to take advantage of those in their most vulnerable state. Thanks to the investigative work of IRS-CI special agents and our law enforcement partners, we’ve ensured criminals who try to defraud CARES Act programs face consequences for their actions,” said IRS-CI Chief Jim Lee. 

As a result of the investigations, the consequences include a 100% conviction rate for prosecuted cases with prison sentences averaging 42 months.

The IRS Criminal Investigation Denver Field Office conducts investigations throughout Colorado, Wyoming, Montana, and Idaho. IRS-CI encourages the public to report known or suspected fraud attempts .To report a suspected crime, taxpayers may visit IRS.gov.

Some States Suspend Gas Taxes

5 April 2022
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Some states are suspending their gas taxes in order to make gasoline cheaper for their citizens. Georgia and Maryland are such examples, where taxes add 30 cents and more to the cost of a gallon of gasoline. California adds 67 cents. In Montana, as of Jan. 1, 2022, tax on a gallon of gas was 33.3 cents, ranking Montana 21st for the highest gas tax.

Gas prices are hovering near all-time highs in the United States. The average price of a gallon of regular gasoline stood at $4.24 as of March 23 – up 70 cents from a month ago.

What Americans pay at the pump is subject to a number of factors – the most important of which is the price of crude oil, which is determined by global supply and demand. As major markets around the world have banned Russian oil imports amid the ongoing war in Ukraine, the global energy market has tightened considerably, sending gas prices to record highs.

While shocks to the global energy market are largely out of the control of U.S. policymakers, other factors affecting gas prices are not, namely taxes. The federal government levies a tax of 18.4 cents on every gallon of gas sold to American motorists.

On top of the federal gas tax, as of January 2022, Montana levied an additional tax of 33.3 cents per gallon – the 21st highest gas tax among states. Currently, the average price of a gallon of gas in Montana stands at $4.02. Including the federal tax, taxes account for 12.8% of the average price of a gallon of gas in the state.

Gas taxes are typically used to fund road and highway repair projects to fix damage caused by usage and wear. In Montana, vehicle miles traveled per year total about 14,670 per driver, the 14th most among states.

Not only are taxes adding to the pain Americans are feeling at the pump, but the revenue they generate has failed to keep up with infrastructure maintenance costs and inflation. While many states are adjusting tax rates to address the shortfall, the federal gas tax has not changed since 1993.

Montana Unemployment Drops even More!

5 April 2022
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Montana’s unemployment rate hit another record low in February, dropping to 2.6% for the month, down from January’s rate of 2.7%. Montana’s total employment and labor force continued to show strong growth in February, both setting new all-time highs.

The struggle for employers to find employees may be more to do with the increase in the number of jobs and income opportunities than to the common refrain that “no one wants to work.” Montana’s total employment, which includes payroll, agricultural, and self-employed workers, rose by 2,328 in February to 542,086, the highest level of employment recorded in Montana history.

Montana’s unemployment rate is the 5th lowest in the nation. Ranking higher than Montana is Indiana, Utah, Nebraska, and Kansas, according to WalletHub.com. Rounding out the top ten after Montana is Oklahoma, Alabama, New Hampshire and Arizona.

District of Columbia has had the least bounce back, ranking dead last. California is then 50th below, Hawaii, New Mexico, Maryland, Massachusetts, Texas, Alaska, Connecticut, and Delaware.

While Montana’s unemployment rate was 2.6% in February, the unemployment rate for the U.S. was 3.8%.