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The Best Five Local Funding For Montana Small Businesses

Small businesses in Montana have experienced noticeable growth in recent years. According to gerber.com, the current total number of small businesses in Montana is 106,789. When we include the total number of self-employed individuals in the equation, the total number of Montana small businesses increases to 199,386.

At a glance Montana may be considered to be the best state for small business loans. There are various organizations in Montana that provide different loan options for small businesses. The loans can come in the form of grants, small business loans, and more. The process of applying for Montana small business loans is pretty straightforward. Small startup owners can request a loan from banks, government, private lenders, online lenders, and more.

Top Five Small Business Loan Options

If you need a loan to start your business or you want to expand an existing one, there are several options for you to choose from. We recommend that you check various options before choosing the loan that best meets your startup requirements. 

This section will discuss some of the top local funding options that offer small business loans in Montana. 

Montana Commercial Credit

The Montana Commercial Credit came into existence in 1999, and since then, they have helped customers and vendors develop their startup. Additionally, the credit union can provide creative funding to commercial customers located in more than 50 states.

Since the organization's beginnings, they’ve helped over 20,000 business owners with small business startup funding and they’ve disbursed over $800 million. Montana Commercial Credit focuses mainly on equipment financing, which allows you to buy what you need for your business without exhausting your working capital. Which lets you keep your business running. The organization provides funding to small businesses that fall within the following categories:

  • Logging
  • Transportation
  • Local delivery
  • Construction
  • Agriculture
  • Manufacturing
  • Medical
  • Restaurant industry
  • Plumbing, electrical, and HVAC companies
  • Landscape and maintenance companies. 

The process of applying for Montana Commercial Credit funding is pretty straightforward. First, you should fill out an online application form, then one of the financial assistants will call you. You’ll receive approval within 0 to 24 hours. After that, you’ll receive a document to sign. Once you sign it, you send it back to them, and your equipment will be paid for. 

Beartooth Bank

Beartooth Bank is an expert in business lending. They have a deep understanding of how the business economy works. Whether you’re just starting your business or expanding an existing one, Beartooth Bank is ready to help you make the most of every opportunity that comes your way. The institution's loan application process is fast and easy.

In addition, the organization will also help you decide on the right SBA loan that is best for you. The various SBA loans that you can access at Beartooth Bank for your small startup include:

  • Equipment Financing
  • Intergenerational Transfers
  • Construction Financing
  • Business Purchase

Aside from the loan option mentioned above, Beartooth Bank also provides small businesses with a credit line, which can help your small businesses easily access funds. The bank also offers real estate financing. 

Southern Montana CFCU

Southern Montana CFCU is a federal credit union that has been helping small businesses in Montana since its inception in 1941. It’s the 13th biggest credit union in Montana, with assets totaling $135.41 Million. This union provides banking services to more than 8,000 members. Additionally, the institution is one of the most affordable lenders in the state of Montana, and they have pre-approval available for customers that can help you secure your startup loan without stress. 

The institution will offer you the best support from start to finish. They provide low rate business term loans for a variety of businesses that include:

  • Equipment and machinery
  • Facility improvement
  • Commercial vehicles, and more 

Missoula Federal Credit Union (Clearwater Credit Union)

Missoula Federal Credit Union is a business lender with a lot of local funding experience. The organization has been providing banking services and startup funding to small startups for more than 63 years. Recently, the credit union changed its name to Clearwater Credit Union. 

If you have a small startup and you’re looking to save money on financing, Clearwater Credit Union is the best option. They offer small businesses a great rate on several business loans. They’re the top local funding option that you can go for. The business loan options available include:

  • Commercial real estate loan
  • Construction loan
  • Equipment and auto loan
  • A business line of credit

Western Security Bank

Western Security Bank is another top local lender that you can consider for your small startup loan. Since the institution's inception, they’ve provided world-class financial funding services to individuals and businesses in Montana. If you want to start a startup or expand an existing one without breaking the bank, Western Security Bank is a great option. 

They provide access to various business loan types, including:

  • Lines of credit
  • Equipment term loans
  • Commercial real estate term loans
  • Agricultural loans
  • Commercial construction loans
  • Small Business Administration (SBA) loans

Summary

Financial Institution

Amount of Loan

Interest Rate 

Requirement

Montana Commercial Credit

$10,000 to $250,000

Interest rates between 3.04% and 3.79% (depends on the type of loan you apply for)

  • For equipment financing, the equipment will serve as your collateral.
  • You need to complete an application online, and you’ll have to sign some papers. 

Beartooth Bank

A maximum loan of up to $1million

Fixed rate 

  • You need to email the bank to request for the requirements.

Southern Montana CFCU

It’s based on the loan you apply for. You can request for more info at the site.

Competitive rates

  • You need to fill out and submit a form on the site. After that, one of the representatives will contact you to complete the process. 

Missoula Federal Credit Union (Clearwater Credit Union)

$10 million maximum loan size

Competitive interest rate 

  • You need to talk to a lender on the site to learn about the requirements.

Western Security Bank

$350,000 up to  $5,000,000

The rate depends on the loan you’re applying for.

  • To start the process, complete the online form to schedule a meeting with the bank’s lender. 

Top Online Montana Small Business Loans Options

Besides local funding options available for small businesses in Montana, there are other loan options that you can choose from. Among these other options are online lenders, and they provide a more convenient way for you to access loans. 

The application process is fast, and you can even fill out the application form right from the comfort of your home. Once you submit the loan application, you’ll receive your funding within 0 to 24 hours.   

1. Fundbox

Fundbox offers flexible lines of credit for small businesses. One impressive thing about Fundbox is that rather than having to fill out an application form, the online lender will connect to your accounting software or bank account. Fundbox uses an algorithm that checks your eligibility. If the algorithm likes what it sees, your application will be approved within minutes.

In addition, Fundbox is great for small businesses with a low credit score as the online lender doesn’t have any specific credit score requirement. What's more, Fundbox borrower conditions are also low. You can qualify for the loan offer with just $50,000 yearly revenue. 

2. Fundera

Fundera is another top online lender that small businesses should consider. Fundera also acts as a marketplace that consists of several loan lenders. With this, you’ll be able to compare several loan options so you can choose the one that best suits your business requirements. Fundera offers the following funding options:

  • Personal loan
  • Term loan
  • A business line of credit
  • SBA (7a) loan

To be eligible for Fundera's funding, you should have:

  • A credit score of 550 or more 
  • A business that is 3 years old
  • A minimum of yearly revenue of $300,000 

3. OnDeck

If you have a small business in Montana and you want to apply for several term loans over an extended period of time, OnDeck is the best option to consider. The lender has several benefits like reduced fees and lower rates for its regular customers. This means that you can get a lower rate the more you borrow from OnDeck.

OnDeck provides a line of credit and business term loans for businesses. For a line of credit loan, you can access up to $100,000 with a repayment term of up to 12 months. However, business term loans offer up to $250,000 with a repayment term of up to 18 months.

Additional Montana Small Business Financial Resources

Small businesses in Montana can also access other financial resources to help fund their business idea. These financial resources include business grants. A grant is often more beneficial than a loan, because you don't need to repay funding from grants. 

Small business grants can be competitive but it is worth checking to see if you are eligible. 

Below are some of the business grants available for small businesses in Montana: 

Montana Business Stabilization Program 

The Montana Business Stabilization Program was created to offer working capital to small businesses to support debt service, payroll, accounts, rent, and other expenses needed to maintain business operations. If you want to apply for this grant, your business should be based in Montana, and it must have 50 or fewer workers. 

Montana Facility Finance Authority, Emergency Loan Program

The Emergency Loan Program makes short-term loans available for eligible businesses and institutions at a very competitive rate. Eligible projects for these business grants include operating expenses, purchase of equipment, facility acquisition, and many more. 

How to Prepare for Montana Small Business Loans

After choosing the best Montana small business loan that you want to apply for, the next thing you will need to do is to prepare for the application process. While these lenders might have different evaluation requirements, some things need to be considered: 

  • Create a great business plan
  • Get a good credit score
  • Make the best of your business revenue

The Bottom Line

Small businesses in Montana are on the rise, and more are still coming up. Business loans are crucial for the successful running of small business operations. So if you are thinking of starting a new business or expanding the existing one, there are various local and government business loans for small business owners to access. Nevertheless, if you’re not eligible for these offers, we have covered the top online funding options for you to consider.