MCFC is a Certified Development Company licensed and regulated by the U.S. Small
Business Administration (“SBA”) to deliver 504 loan financing. MCFC’s role is to
package, process, close and service SBA 504 loans in the state of Montana. Our
professional staff will work with the financial institution and/or the small
business owner to tailor a financing package that meets program guidelines and
the credit criteria of the business.
What we do – how it works:
MCFC will need financial information, a list of project costs, a business plan
and other applicable documentation. An appraisal is needed for most projects,
and typically the financial institution’s appraisal can be used.
After the underwriting of the loan has been completed and the loan has been
approved by MCFC’s Loan Review Committee, it is submitted to the SBA. If
approved, the SBA then issues an Authorization for Debenture Guarantee which is
their written agreement that provides the terms and conditions under which they
will guarantee 100% of the debenture that MCFC will have issued. Once a month,
MCFC’s debentures and debentures across the nation are pooled together and sold
to investors on the stock exchange. The money from the investors is used to fund
the 504 loan.
As 504 loans are permanent financing, the financial institution provides an
interim loan for the business to acquire and/or improve the property and the 504
loan pays off the interim loan directly when the project is complete and
occupied.
Purpose of the program:
• foster economic development
• create and/or preserve job opportunities
• stimulate growth, expansion and modernization for small businessesMISSION STATEMENT
The mission of Montana Community Finance
Corporation is to stimulate growth and expansion
of small business and employment in Montana.
NEWSLETTER Find
out more information about Montana Community
Finance in our
newsletters.
FORMS
For an application or other forms please click
here. |
