Small Business Loan Options in Montana

Entrepreneurs in Billings, Great Falls, Missoula and other points in Montana have one thing in common: they have the courage to face the ups and downs of running a business.

One of the common challenges is not having enough capital to operate effectively. If you find yourself struggling with a lack of capital, a small business loan might be what you need to get by.

How a Small Business Loan Can Help Your Montana Business

Financial assistance in the form of loans is not just meant to help when things go wrong. You can also use a business loan to buy a business for sale, which can help you expand your presence.

You can use the funds to purchase equipment that allows you to better serve customers. You can buy real estate, which can help you spend less than you pay in rent. You can buy inventory, hire marketing help, or invest in your education to make you a smarter business owner.

Types of small business loans to choose from

When it comes to small business loans, you are spoiled for choice in Montana. Here are some of your options, offered by financial institutions, credit unions and online lenders.

SBA Loans

The United States Small Business Administration supports small business loans, although it does not offer them directly. SBA loans have low interest rates and long repayment terms, and can be used for working capital or to purchase real estate or equipment.

Here are some of the lenders that offer SBA Montana business loans:

Term loans

You can also get low interest rates with a term loan from a bank, although you need good to excellent credit to qualify. Explore your term loan options in Montana.

Lines of credit

Business lines of credit allow you to access funds when you need them rather than in advance. If you are borrowing money to renovate a property this can be useful as you may not know how much you will need for the whole project.

Here are some of the lenders offering business lines of credit.

Commercial real estate loans

There are loans specifically for the purchase of commercial real estate. These loans can come with low interest rates because they are secured by the property you are buying. Here are the lenders offering commercial real estate loans.

Business credit cards

If you just need to be able to buy things for your business when you need them, or if you don’t qualify for the options above, maybe because you’re running a start-up, a business credit card may be a good choice. Look for one that offers rewards.

  • Capital on Tap Corporate Credit Card
  • CitiBusiness® / AAdvantage® Platinum Select® Mastercard®
  • Divvy chip credit card for business

What it takes to get approved for a small business loan

Borrowers should consider what it takes to qualify for a loan before apply for one. If you are applying for a business loan or SBA loan from a bank, you may need higher credit scores and time spent in business. You may also need to provide tax records and a business plan.

If you don’t have good credit, you can apply for an alternative loan online, which usually only wants to see your annual income.

How to Choose the Right Loan for Your Montana Small Business

With so many loan programs, how can you be sure that the one you choose is the best? What is considered the “right loan” for you depends on your business needs.

First, you need to qualify for it. If you don’t have good credit, you won’t qualify for an SBA loan. Second, it should offer competitive interest rates and low fees. Do not hesitate to shop around to find the best price.

You also want to work with a lender that has positive customer service reviews because you will have a relationship with that lender for potentially several years.

Small Business Grant Options for Montana

In addition to Montana small business loans, there are also small business grants you may qualify for.

The Indian Equity Fund Small Business Grant provides up to $14,000 to Native American-led businesses in Montana.

The Nav Small Business Grant provides $10,000 to one winner each quarter and $5,000 to finalists.

The Big Sky Trust Fund (BSTF) grant program provides funding to businesses that create full-time jobs in the state.

Additional Resources for Small Businesses in Montana

Let’s wrap up with some small business resources that can provide you with free training and workshops, mentorship, and advice.

Find the right financing in Montana

Small business owners looking for working capital, grants, or mentors have a wealth of resources in the state. It’s just a matter of finding what suits your business needs.

This article was originally written on February 28, 2022.

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