Big Sky Economic Development

Creating Montana Business Opportunities

SBA 504 Loan Program

The Vision: A Vibrant Healthy Economy

Our Goal: To foster economic development and assist businesses in creating and retaining jobs.

SBA 504 Forms

Big Sky Economic Development Corporation [Big Sky EDC] is accredited by the US Small Business Administration (SBA) as a Certified Development Company (CDC) for the State of Montana.

The SBA 504 Development Company loan program is a long-term financing tool used by eligible small businesses. The program provides long-term, fixed rate financing for major fixed assets, such as land and buildings.

The typical structure for an SBA 504 loan is 50% of the project costs financed through a private lender having a senior position on the collateral, 40% of the project costs financed with SBA through a Certified Development Company (Big Sky EDC ) having a junior lien position on the collateral and at least a 10% owner equity contribution. The maximum SBA portion of the loan is $5.0 million. Eligible manufacturers may receive up to $5.5 million.

It’s A Good Deal
For the BORROWERS - Conserve CASH FLOW

  • Low down payment - typically 10%
  • Conserve cash flow for operations
  • Competitive, Fixed, Long-term rate


  • Low Loan to Value - secure collateral position
  • First Lien Position, SBA takes subordinate position
  • Lender sets own rates and terms


  • Works directly with the client
  • Packages, processes, closes and services the SBA 504 Loan
  • Utilizes job creation to define loan size for SBA portion

SBA 504 Eligible Uses Include But Not Limited To:

  • Purchase of land & improvements. Construction of new facilities or modernizing, renovation or conversion of existing structures. Company must occupy 60% of new and 51% of existing buildings.
  • Machinery and equipment with a 10-year minimum useful life.
  • Other uses available, contact for information

SBA 504 is permanent financing - not used for construction or interim lending

Rate & Terms

  • Fixed 20-year rate on the SBA 504 portion is tied to the 10-year Treasury bond rate
  • Private lender sets own rates and fees.
  • Loans are 10 or 20 years.
  • RE = 20 year note   Equipment only = 10 year note

Fees & Payments

  • Most all SBA 504 loan fees are added to the loan amount and amortized over the loan term.
    • One time processing fee - approximately 2.65% of SBA's portion
    • Loan closing fees - approximately $2,500
  • Ongoing service fee included in the effective full-term rate

Contact Big Sky Economic Development for additional information and questions regarding the following programs.

Big Sky EDC Revolving Loan Fund

For the Borrower

  • Funds available for fixed assets, inventory, working capital
  • Low origination fees
  • Competitive fixed five-year interest rate

Lenders First Lien Position

  • Existing businesses - with operating history

Yellowstone County Tax Incentive Programs

  • Remodeling, Reconstruction Or Expansion Of Building Structures - 5 Year Abatement
  • New & Expanding Industry Program - 10 Year Abatement

Montana Board Of Investments Infrastructure Loan Package

  • Loan funds infrastructure projects that provide facilities/services to basic sector businesses