Business Loan Participation Program

BOI buys up to 80% of a fixed-rate business loan originated by an Approved Lender (bank/credit union) to a Montana business; terms up to 25 years, or 30 years when federally guaranteed. The weekly rate sheet explicitly prices FSA-guaranteed loans, so farm and ranch borrowers can reach it through an FSA-guaranteed bank loan.

Montana businesses borrowing from a BOI Approved Lender; 'BOI does not lend directly to businesses. Only Approved Lenders may submit loan reservation and loan application forms.' Policy 70.720 ineligible loans: substandard/classified loans, loans to trusts, land development or speculative ventures, borrowers with felony charges or bankruptcy, revolving lines of credit / working capital / operating money, delinquent taxes. Loans must cash-flow at 1.25x debt service; Montana-labor preference and prevailing wage on construction.

Fixed rate up to 25 yrs (30 yrs with federal guarantee); BOI share 80% at LTV ≤75% (70%/60%/50% at higher LTV, or 75/70/65% at +0.25/0.50/0.75%); 0.25% reservation fee (refundable if rejected); job-creation rate reduction up to 2.50%; 0.50% small-loan incentive; first lien shared pro rata with lender; personal guarantees as required.

Published amounts: No published min/max; 'Maximum BOI participation is 80% of lender loan if the loan-to-value is 75% or less.' Policy 70.720: max to any borrower = 10% of the Permanent Coal Tax Trust book value. Rate sheet 9/3/26: conventional 6.729% (5 yr) to 7.942% (25 yr); Fed Guaranteed (SBA, RBS, FSA, BIA) 6.329% (5 yr) to 7.962% (30 yr); 0.50% reduction for aggregate loans under $674,960; up to 2.50% job-creation reduction.

Through the Approved Lender only: lender submits the Loan Reservation Form (fee 0.25% of BOI participation; locks rate and reserves funds one year) then the Application Form; BOI completes a full underwriting credit review. Forms at mt.accessgov.com/boi. Lenders not yet approved use the Lender Approval Form page.

Deadline text on the page: No deadline; rates reposted weekly ('Interest rates effective for a one (1) week period, will be updated each Thursday'). Rate sheet in hand: September 3, 2026 through September 9, 2026.