Montana SMART Business Revolving Loan Fund
Montana Department of Commerce — Business Resources Division
Up to $500,000
Montana's gap-financing small business loan
Montana's primary state-level gap-financing loan for small businesses that cannot fully access conventional bank financing. SMART (Small Microbusiness Assistance, Resources, and Training) loans provide up to $500,000 at fixed below-market interest rates, often structured as a second-lien gap loan alongside a senior bank lender. Designed for Montana small businesses in manufacturing, technology, tourism, and other traded-sector industries that are creating or retaining jobs. Administered by the Montana Department of Commerce.
- Funding type
- Loan
- Level
- State
- Amount range
- $10,000 – $500,000
- Realistic amount
- Most SMART loans to small Montana businesses range $50,000–$200,000 as a gap layer alongside a bank senior loan. Project…
- Deadline
- Rolling — applications accepted year-round subject to fund availability.
- Status
- discontinued
- States
- MT
- Payment model
- advance
Who qualifies
- Montana-based for-profit business with primary operations in Montana
- Must demonstrate that conventional financing alone is insufficient for the project (gap-financing rationale)
- Must create or retain jobs in Montana — minimum job count varies by loan size and county
- Business must be in good standing with Montana Secretary of State and Montana Department of Revenue
- Senior lender (bank or equivalent) must be engaged and willing to take first-lien position for projects involving real property or equipment
- Business must demonstrate cash flow sufficient to service all debt including the SMART loan
- Preference for projects in rural Montana counties and distressed communities
Hard requirements
- Must be incorporated
- Minimum project size: $10,000
What it covers
Eligible expenses
- Purchase of real property (land and commercial buildings) in Montana
- Construction or renovation of commercial facilities
- Purchase of capital equipment and machinery
- Working capital for operational growth (limited proportion)
- Leasehold improvements
Ineligible expenses
- Refinancing existing debt
- Speculative real estate investment not tied to business operations
- Projects located outside Montana
- Passive investment entities
How to apply
-
1
Contact Montana Commerce Business Resources Division
Call or email Montana Commerce to describe the project and financing need. Staff will assess preliminary fit for SMART or other state loan programs and advise on the application process.
~9 hrs
-
2
Prepare application package
Gather: business plan or project description, 3 years of financial statements, personal financial statements for owners with >20% ownership, current balance sheet, senior lender term sheet, collateral description, and job-impact summary.
~9 hrs
-
3
Montana Commerce credit review
Commerce staff underwrite the application including collateral assessment, cash flow analysis, and job-impact evaluation. Review takes 4–10 weeks from complete application.
~9 hrs
-
4
Loan committee approval and closing
Applications are reviewed by the Montana Board of Investments or the Montana Commerce internal loan committee. Upon approval, loan closes simultaneously with or shortly after senior bank loan.
~9 hrs
Montana Commerce sometimes co-lends with USDA Business and Industry Loan Guarantee for rural projects — ask specifically about USDA B&I stacking when you call, as the combined package can finance up to 90% of a rural project at below-market rates.
Deadline & timing
Montana Commerce processes SMART loan applications on a rolling basis with no fixed windows. Fund availability is replenished as prior loans are repaid. Contact the Business Resources Division early to gauge current capacity.
Programs that stack well
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.