Other Loan Programs – Big Sky Economic Development

Big Sky EDC Revolving Loan Fund

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 are available to businesses operating within Yellowstone County.
Loans will primarily be made to existing businesses with at least 24 months of operating history.
Loans that create new jobs, retain existing jobs, and/or significantly expand the existing tax base are encouraged.
Bank participation in the financing project is preferred.
The RLF’s lien position may be subordinated to a participating lender to secure financing for the project.
Working capital, machinery, and equipment loans will have a five-year term.
Real estate loans may be amortized over 10 or 15 years, with a balloon payment or refinancing due at the end of the first five years.
Loan amounts will not exceed $100,000.
Borrower equity of at least 10% is preferred.
Borrowers must demonstrate sufficient cash flow and positive net income.
Borrowers must meet SBA size standards for a small business.
All owners with a 20% or greater ownership interest in the applicant business must provide a full guarantee.
Borrowers may be required to obtain business counseling with the Billings Small Business Development Center.