Community Profiles GNDC Overview Regional Maps

Community Development Block Grants | MicroBusiness Finance | Small Business Development Center | Bio-Products Innovation Center

Community Development Block Grant Revolving Loan Fund  APPLICATION PROCEDURE Great Northern Development Corp. has established a $1.2 million dollar regional revolving loan fund (RLF) to provide gap financing to startup or expanding businesses in Valley, Daniels, Sheridan, Roosevelt, Garfield and McCone Counties. These loan resources are available through the Montana Department of Commerce Community Development Block Grant funding for economic development projects.  Priority is given to private business projects designed to stimulate economic development activity by assisting the private sector to create or retain jobs for low-moderate income (LMI) persons.  The CDBG funds are intended to be used where a funding gap exists and alternative sources of public and private financing are not adequate.   Applications are accepted on a continuous basis as long as funding is available in the regional (RLF) fund.  Typically the loans from the RLF are between $50,000 and $100,000. Applications are made directly to GNDC. Projects are selected for funding based on a number of criteria. Loan repayments by the assisted business are retained and provide loans to other qualifying businesses within our region Assistance is also provided for the SBA 504 and USDA Rural Development Business and Industry Programs.

  THRESHOLDS

• Maximum of $20,000 CDBG funds per job created with 51% of jobs created for low to moderate income (LMI) persons
• Maximum of 5:1 Debt-to-Equity ratio
• Minimum of 1:1 matching funds (50% of which must be new cash, loans, etc.)  Can be used in conjunction with other state and federal programs & private financing
• Maximize all other reasonable available sources of private financing

LOAN TERMS & POLICIES

• No origination fee
• Interest Rate:  6% (set annually)
• Working Capital - 5 to 7 years
• Equipment - 10 years
• Real Estate - 15 to 20 years

COLLATERAL

• Loan-to-Value:  Negotiable (can take a subordinate position)
• A/R, Inventories, Equipment, Real Estate, Other Business/Personal Assets as may be determined
• Personal Guarantees from Principal Owners may be required

   INELIGIBLE ACTIVITIES

• General community promotion
• Assistance to professional sports teams
• Assistance to privately-owned recreational facilities
• Acquisition of land with no specific purposed use

For more information:  Contact Martin DeWitt using  the form at right.  Or, contact Martin at: Great Northern Development Corp. 233 Cascade Street Wolf Point, MT 59201 Phone: (406) 653-2590    Fax:  (406) 653-1840 Email: loan@gndc.org

Questions or Comments for the CDBG Loan Officer? First Name: Last Name: Phone #: Email Address:

Return to GNDC Home Page

---

This page was last updated February 22, 2007