Governor Steve Bullock today announced the creation of a
loan deferment program to assist Montana businesses impacted by COVID-19.
The Montana Loan Deferment Program will allow businesses and
other entities to defer payments on existing loans for six to 12 months and
free up a significant amount of otherwise dedicated capital for the borrower to
leverage on a monthly basis. If a borrower is approved for the program, Coronavirus
relief funds will be used to provide payments to participating lenders to cover
interest payments for six-to-twelve months, up to 6 percent or $150, 000.
“Through the Coronavirus Relief Fund, we’ve been able to
consider and begin meeting the needs across all sectors of the economy and in
all corners of the state,”
Governor Bullock said. “The funds we’ve
distributed have gotten Montanans back to work, stabilized businesses, provided
a safety net for individuals, and jumpstarted industries while considering what
support should be available to ensure long term sustainability.”
Governor Bullock is directing $125
million to the program with $25 million specifically dedicated to hotels and
restaurants and the remaining $100 million dedicated to other eligible
borrowers.
The amount currently dedicated to this program could help
defer between 5,000 and 10,000 loans and free up capital to bring stability for
businesses and other entities in the long term.
“This program will provide a much needed lifeline to many
Montana small businesses to help them recover from the impact of COVID-19 and
allow them to get stronger for the future,”
said Randy Chesler, CEO of
Glacier Bancorp.
“This program will not only provide much needed relief to
Montana businesses, it will do so in a way that allows the state’s banks to
mitigate risks in the marketplace. Montana’s community banks have stepped up in
a big way and will continue to do so through this program in order to help the
people of Montana get through this crisis,”
said Andy West, President of
Eagle Bank in Polson.
To be eligible, borrowers must have experienced a 25 percent
reduction in gross revenue due to COVID-19. The borrower must also not have
access to 12 months of working capital from any other source and be actively
registered with the Secretary of State to do business in Montana. The full
eligibility criteria are available at
COVIDRELIEF.MT.GOV.
The program will be jointly administered by the Board of
Investments and the Department of Revenue. Borrowers will apply through their
existing lender, which will submit the application to the Board of Investments
and Revenue for review and payment if approved. Recipients will be listed on
the transparency website that is updated weekly.
For businesses seeking access to new capital, the state is
currently developing a program that will assist those with needs for new
capital.
Governor Bullock also announced he is allocating $530,000 to
the Department of Commerce to promote the Census through October 31, the new
deadline for completing the decennial count.
“We know an accurate and complete count of all Montanans
is critical for determining the federal funding distributed to the state for
education, highways, health care and over 300 other programs,”
Governor
Bullock said.
“This funding will support the state over the long term and
ensure we do everything we can to get a complete count and our fair share of
federal funding over the next decade.”
While the federal government is tasked with counting all
households every 10 years, the state supports the effort to educate and promote
the importance of the Census. The U.S. Census Bureau suspended all field
operations from March to early May to slow the spread of COVID-19, which put
Montana’s response rate below the national average. An accurate and complete
count of all Montanans is critical for determining the federal funding
distributed to the state, it shapes local voting districts, and it determines
whether Montana will receive a second seat in the U.S. House of
Representatives.
The following programs have been created in under two months
using funding through $1.25 billion in federal emergency relief funding through
the Coronavirus Aid, Relief, and Economic Security (CARES) Act:
- Montana Meat Processing Infrastructure Grant, Montana
Department of Agriculture
- Montana Business Adaptation Program, Montana Department
of Natural Resources and Conservation
- Montana Business Stabilization Program, Montana
Department of Commerce
- Montana Innovation Grant Program, Governor’s Office of
Economic Development
- Montana Food and Agriculture Adaptability Program,
Montana Department of Agriculture
- Local Government Reimbursement Program
- Emergency Housing Assistance Program, Montana
Department of Commerce
- Public Health Grants, Montana Department of Public
Health and Human Services,
- Stay Connected Grants, Montana Department of Public
Health and Human Services
- Food Bank and Food Pantry Assistance, Montana
Department of Public Health and Human Services
- Social Services Nonprofit Grants, Montana Department of
Public Health and Human Services
- Telework Assistance Grants, Montana Department of
Public Health and Human Services
More than $30 million has gone to Montanans and Montana
businesses impacted by COVID-19. To find the transparency webpage and learn
more about where the funds are going, go to
COVIDRELIEF.MT.GOV.