Big Sky EDC Revolving Loan Fund (RLF)
The Big Sky EDC Revolving Loan Fund is a financing option available for businesses located within Yellowstone County.
The purpose of the Big Sky Economic Development Revolving Loan Fund (RLF) is to encourage and accelerate economic development activities in the City of Billings and Yellowstone County. Funding will be made to businesses operating primarily in these areas. Job creation and capital investment will be the primary goals.
The Big Sky EDC Revolving Loan Fund is used primarily as a GAP financing tool. The money is lent directly by Big Sky EDC to eligible small businesses in Yellowstone County. It is the goal of Big Sky EDC to use the Revolving Loan Fund in participation with a borrower’s local financial institution to provide additional financing opportunities to the small businesses in our community.
Loan Fund Policies
- Loans to businesses operating within the Yellowstone County area
- Loans will primarily be made to existing businesses (24 months or more) of operating history
- Loans will be encouraged which create new jobs, retain existing jobs and/or provide a significant expansion to the existing tax base.
- Bank participation is preferred on the financing project
- Subordinate Financing – Lien position of the RLF may be subordinated to participating lender in order to secure financing for the project
- Loan terms will be for a 5 year period – Working capital and machinery and equipment loans
- Real Estate loans may be amortized over either 10 or 15 year terms with balloon payments or refinancing due at the end of the first 5 years
- Loan amounts will not exceed $100,000
- Borrower equity of at least 10% is preferred
- Borrower must demonstrate sufficient cash flow and positive net income
- Borrower must be small according to the SBA size standards for a small business
- All 20% or more owners of business applicant will be required to provide a full guarantee
- Borrowers may be required to obtain business counseling with the Billings Small Business Development Center
- Permanent Working Capital
- Commercial Real Estate
- Bridge Financing