Business Loans in Montana
With one of the most business-friendly economies in the country, Montana is an excellent home for your small business, and a business loan can help.
Business Loan Types in Montana
Montana is an extremely friendly state for small businesses—property taxes are low, corporate tax rates are favorable, and there is no sales tax. Big Sky Country is home to a booming tourism industry and several popular small cities, and you can use a business loan to optimize your operation there.
SBA loans
SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.
Line of credit
Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.
Term loan
Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.
Equipment finance
With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.
Accounts receivable financing
Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.
Local Montana Business Loan Options
Several local organizations provide small business funding resources in Montana.
Next Frontier Capital is a vibrant, Montana-based venture capital firm with offices in Bozeman and Missoula that funds a growing portfolio of innovation-focused small businesses.
Montana Commercial Credit is totally dedicated to servicing business loans throughout Big Sky Country, and they even provide guidance and educational resources.
Bravera Bank is a local Montana bank with a notable suite of commercial lending programs—it even specializes in commercial real estate loans and aircraft financing.
Four simple steps to funding.
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Find the funding option with the terms that best fit your small business goals.
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Once you accept, funding can hit your bank account in as little as 24 hours.
FAQ about Small Business Loans in Montana
FAQs
The Montana Department of Commerce has many necessary resources for small businesses in the state, and there is also an active Small Business Development Center that has great networking and other resources for Montana companies. Accelerate MT helps small businesses in the rural and tribal areas of Big Sky Country with a series of programs and resources. Montana State University also maintains a long list of resources for businesses, like programs for manufacturers and help acquiring talent.
The state’s tourism agency runs a Tourism Grant Program aimed at small businesses working in Montana’s tourism and recreation industries. USGrants.org is a great place to look often for grants from the federal government that are earmarked for Montana companies, especially if your business operates in environmental conservation, wildlife management, or paleontology sectors. For businesses focused on exports, the state offers a STEP granting initiative.
Ahead of any business loan applications, you and any of your partners need to decide on a corporate structure, which might be a sole proprietorship, corporation, or limited liability company (LLC). Depending on your structure, you might have to register with the Secretary of State, and you might need to apply for business licenses, depending on the nature of your industry. Once your operation is set up, you can qualify for business loans in Montana. The process is different based on the financing type and the financier, but many will consider your business plan, your business’s fiscal history, and your personal credit report in making loan approval decisions.
To determine the right loan for you, consider your business’s overall goals. The right loan for your Montana small business is the one that will allow you to expand the most in both the near and long term, without overly impacting your cash flow as you pay it off. If you have modest business plans for sustained growth and can wait a few weeks to find out about your application’s approval, SBA funding, like a 7(a) loan, might work great for you. If there is a piece of equipment—such as a tractor, van, or 3-D printer—that can quickly take your business to the next level, look into equipment financing.
A business loan in Montana can help your business because it can help you solve problems and grow. Whether it’s finding great new staff, opening a new office, or getting necessary machinery, outside funding can improve your ability to expand and improve your small business and actually help your company become more profitable. You can look at many financing options using Lendio’s free online platform.
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