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Loan Deferment Program for Montana Businesses

The State of Montana has created a loan deferment program for businesses impacted by COVID-19. The Montana Loan Deferment Program allows borrowers to defer payments on existing loans for six to 12 months. If a borrower is approved, the state will use CARES Act funding to pay lenders to cover interest payments on these loans during the deferment period, up to 6% or $150,000.

For more information or to apply, please contact your local First Interstate banker.

Frequently Asked Questions

To be eligible, the borrower must have:

  • Experienced a 20% reduction in gross revenue because of COVID-19, during a comparable year-over-year period;
  • A physical presence in Montana;
  • Been no more than 30 days past due as of December 31, 2019;
  • Been current on all other state financial obligations, including income tax, property tax, payroll tax, workers’ compensation, child support, etc.
  • Good standing with the Montana Secretary of State; and
  • No reasonable access to 12 months of working capital from any other sources.

The following scenarios are not eligible for this program:

  • Loans with an SBA 7A or 504 guarantee
  • Agriculture production loans
  • Publicly traded companies
  • Borrowers engaged in any activity that is illegal under federal, state, or local law, including marijuana-related

Borrowers can apply through their lender, and the Bank will submit the application to the State for review and payment, if approved. To get started, please contact your First Interstate banker.

The deadline to apply is Friday, August 21, 2020.

No, there are no fees charged to the borrower.

Please contact your banker to begin the application process. You will be required to provide gross revenue figures for the full year through the most recent month. For example, applications submitted in July require figures through June 30, 2020.

Yes. Entities and individuals with multiple loans for one or several businesses will be allowed to apply for each individual loan up to $150,000 in interest payments. The maximum amount is $300,000 in total interest subsidy payments per borrower.

Loan payments can be deferred for no less than six months and no more than 12 months. Borrowers will work with their lender to determine the length of deferment within that time frame up to the $150,000 interest payment limit.

Borrowers may request deferment dating back to the date the governor signed Montana’s emergency declaration—March 12, 2020. 

No. The six- to 12-month deferment will start after the most recent payment.

Yes, the maximum amount per loan note is $150,000. The maximum amount per borrower is $300,000.

Eligibility for the program includes a minimum payment deferral period of six months and cannot exceed $150,000 in interest. Borrowers with loan interest calculated at 6% that exceeds $150,000 over a period less than six months will not qualify.

In this case, First Interstate will temporarily lower the interest rate on your loan to 6% for the deferment period. It will be returned to the original interest rate after the deferment period ends.

In this case, interest will be paid at whatever the rate currently is below 6%.

Yes, the State has declared that revolving lines of credit are eligible for the program and has established that the outstanding balance as of the date of the governor’s announcement of this program (June 17, 2020) is the eligible balance for the program. Any draws on the line of credit after that date will not be eligible.

No, the State of Montana has determined that access to bank funding is not considered access to capital for eligibility purposes.

All maturity dates on loans approved for this program will be extended the for a period equal to the deferral period.

Yes, this deferral will be applied after the last date interest was paid through.

You will not need to verify the year-over-year reduction, but you will need to provide “narrative or other documentation of COVID-related impact.”