Small Business Loans and Microbusiness Finance
Montana offers a layered stack of small business financing programs administered through the Department of Commerce and local economic development organizations. Together they address a real gap in rural capital access, particularly for businesses that cannot qualify for conventional bank loans. The Montana Microbusiness Finance Program (MBFP) is the entry point for very small enterprises. It provides direct loans up to $35,000 to businesses with five or fewer employees that cannot access conventional financing. The program is administered through a network of local microbusiness development corporations (MBDCs) across the state, including those serving rural counties. MBFP loans can fund equipment, working capital, inventory, and leasehold improvements. Interest rates are typically below market, and repayment terms extend up to seven years. The 2025-2026 program cycle continues to prioritize businesses in underserved rural communities and businesses owned by women, veterans, and minorities. The Big Sky Business Loan (BSBL) program targets slightly larger businesses needing gap financing. BSBL loans fill the space between what a bank will lend and what a business actually needs. The program can participate in loans up to several hundred thousand dollars, with the state typically taking a subordinate lien position. This makes deals work for banks that would otherwise pass on a project. BSBL is administered through the Montana Department of Commerce and requires a participating private lender as the lead. The Big Sky Economic Development Trust Fund (BSTF) is Montana's primary job-creation grant tool for private businesses. It provides grants of $5,000 to $20,000 per new full-time job created, with a maximum award of $500,000 per project. To qualify, a business must be expanding operations in Montana, creating at least five net new primary jobs, and paying wages at or above the county average wage. The grant is performance-based: the company receives funds after verified job creation, not before. Retail, hospitality, and construction typically do not qualify. Manufacturing, technology, headquarters functions, and traded-sector services are the target recipients. Applications are accepted on a rolling basis and reviewed by the Board of Investments. The BSTF is funded through legislative appropriations and has an annual budget that varies by session. The Montana Small Business Development Center (SBDC) network provides no-cost advising across eight regional centers statewide. SBDC advisors help businesses identify grant eligibility, prepare applications, build financial projections, and connect with lenders. The Montana SBDC is hosted by the Montana Department of Commerce and funded in part by the U.S. Small Business Administration. For any business pursuing BSTF, MBFP, or federal programs, starting with a local SBDC advisor is strongly recommended. The centers also assist with SBA 7(a) loan applications, SBA 504 fixed-asset financing, and access to the State Trade Expansion Program (STEP) for exporters.
Coal Trust Fund and Energy Transition
Montana sits atop some of the largest coal reserves in North America, and the state has built an entire financial infrastructure around managing coal revenue for long-term public benefit. The Coal Severance Tax Trust Fund, established by constitutional amendment in 1976, requires that 50 percent of all coal severance tax revenue be deposited into a permanent trust. As of 2026, the trust principal exceeds $1 billion. Interest and earnings fund a wide range of state programs without touching the principal, which is protected by the Montana Constitution. The Montana Coal Board administers coal tax revenues that flow outside the trust. These funds support community development grants in coal-impacted counties. The Coal Board's grant program targets infrastructure, economic development, and public services in counties where coal mining and transport have the greatest economic footprint, including Rosebud, Treasure, Musselshell, and Big Horn counties. Grants have historically ranged from $50,000 to several million dollars per project depending on scope. Coal Board grants require local match and a demonstrated connection to coal-impacted communities. Applications go through the Montana Department of Commerce. The POWER Initiative, administered by the Appalachian Regional Commission in partnership with the Delta Regional Authority and other federal agencies, specifically targets economic diversification in coal-dependent communities. While ARC traditionally covers Appalachian states, POWER funding has been extended through appropriations to include Montana's coal communities. POWER grants support workforce training, infrastructure, entrepreneurship, and business development in communities experiencing coal employment decline. Award sizes vary widely; in recent cycles grants have ranged from $100,000 to $2 million per project. Montana communities should monitor annual POWER NOFAs published by ARC. Abandoned Mine Land (AML) reclamation grants flow through the Office of Surface Mining Reclamation and Enforcement (OSMRE) to states with legacy coal mining impacts. Montana receives annual AML grant allocations that fund the physical reclamation of abandoned coal mines, addressing safety hazards, water contamination, and land instability. The Montana Department of Environmental Quality administers AML funds. Eligible projects include mine subsidence remediation, polluted drainage treatment, and dangerous highwall elimination. AML grants are not competitive in the traditional sense; they flow by formula to states based on historical coal production. However, local governments and landowners experiencing AML hazards can apply to DEQ for project inclusion in the annual AML reclamation plan. For businesses and communities navigating the energy transition, Montana's DNRC and Department of Commerce both administer programs supporting renewable development, and federal DOE programs increasingly target former coal communities for clean energy investment. The Infrastructure Investment and Jobs Act created multiple funding streams specifically for coal community transition that Montana entities are actively accessing.
🔍 Search related opportunities now
Treasure State Endowment Program (TSEP)
The Treasure State Endowment Program is Montana's primary infrastructure grant program for local governments. TSEP provides grants and loans to cities, counties, towns, and consolidated city-county governments for drinking water systems, wastewater treatment, solid waste facilities, bridges, roads, and other essential public infrastructure. The program is funded through the Montana Coal Severance Tax Trust Fund earnings and administered by the Montana Department of Commerce (MDOC). TSEP grant awards typically range from $50,000 to $3,000,000 per project. The program prioritizes projects addressing public health threats, failed or failing infrastructure, and systems serving low-income communities. Applications are scored on need severity, local fiscal capacity, project feasibility, and cost-effectiveness. Communities with lower median household incomes relative to the state average receive scoring preference, which reflects the program's design as a tool to help smaller and poorer communities afford infrastructure they could not otherwise finance. Eligible project categories under TSEP include: drinking water system improvements (treatment, distribution, source development), wastewater collection and treatment upgrades, sanitary sewer extensions, storm drainage systems, solid waste facilities, bridge replacement and repair, and road reconstruction where existing infrastructure poses public health or safety hazards. The program does not fund new development infrastructure or projects primarily serving new growth. The application process runs on a biennial cycle tied to the Montana legislative session. MDOC releases a Notice of Funding Availability and application packet typically in the spring of odd-numbered years. Applications require engineering feasibility studies, environmental reviews, community financial analysis, and demonstration of local match capacity. Match requirements vary based on community size and fiscal capacity; smaller and lower-income communities may qualify for reduced match. MDOC provides technical assistance to communities preparing applications. After the application window closes, MDOC ranks all eligible projects and submits a priority list to the legislature for funding approval. The legislature appropriates TSEP funds during the regular session, and MDOC then works with funded communities on grant agreements, procurement requirements, and project implementation. Communities should begin the planning and engineering process 18 to 24 months before an anticipated application deadline, because the program requires a completed feasibility study before submitting. TSEP frequently works in combination with other infrastructure funding sources, including USDA Rural Development Water and Waste Disposal grants and loans, EPA Drinking Water State Revolving Fund, and Community Development Block Grant (CDBG) funds administered by MDOC. Layering these sources is common and often necessary to fund large infrastructure projects in small rural communities. MDOC staff can assist with identifying complementary funding sources and structuring multi-source financing packages.
Agriculture and Growth Through Agriculture Grants
Montana agriculture generates roughly $3 billion in annual cash receipts, and the state maintains a robust set of programs to help agricultural producers and agribusinesses add value, develop new markets, and improve competitiveness. The Montana Department of Agriculture (MDA) administers the primary state agricultural grant programs, while federal USDA programs provide an additional and often larger funding layer. The Growth Through Agriculture (GTA) program is the flagship MDA grant for value-added agriculture. GTA provides grants up to $200,000 per project for agricultural producers, processors, and cooperatives developing new products, entering new markets, or adding value to Montana-grown commodities. The program prioritizes projects that increase farm income, create rural jobs, and keep more agricultural value in Montana. Eligible uses include feasibility studies, product development, processing equipment, market development, and business planning. Grant awards typically require a 50 percent match from the applicant. GTA grants are reviewed by the Agriculture Development Council, with competitive rounds typically opening once or twice per year. Recent funded projects have included specialty meat processing, artisan grain milling, hops production, Montana-grown pulse processing, and specialty dairy. The Specialty Crop Block Grant Program (SCBGP) flows from USDA Agricultural Marketing Service to the Montana Department of Agriculture, which then runs a competitive grant process for projects that enhance the competitiveness of specialty crops grown in Montana. Specialty crops are defined as fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture. Montana's specialty crop sector includes cherries, apples, hops, potatoes, pulse crops, and greenhouse operations. Grants range from $10,000 to $200,000, with no match required. Funded projects must directly benefit specialty crop production, processing, marketing, or research. Applications are typically open in the fall for the following program year. The USDA Value-Added Producer Grant (VAPG) program is a federal competitive grant available to Montana agricultural producers seeking to develop value-added activities. VAPG awards up to $75,000 for planning grants and up to $250,000 for working capital grants. Eligible applicants include independent producers, agricultural producer groups, farmer and rancher cooperatives, and majority-controlled producer-based business ventures. Montana producers compete nationally, so strong applications demonstrate concrete business plans, clear market access, and realistic financial projections. The MDA also administers several smaller grant programs, including the Montana Ag Marketing Grant for market development activities, the Alternative Energy Revolving Loan Program for on-farm renewable energy, and cost-share programs connected to USDA Natural Resources Conservation Service (NRCS) programs like EQIP. Montana producers should also investigate USDA Local Agricultural Marketing Program (LAMP) grants for food system development and farm-to-institution programs. The Organic Certification Cost Share Program reimburses up to 75 percent of organic certification costs, up to $750 per certification category.
USDA Rural Development Montana
USDA Rural Development operates a Montana state office in Bozeman with area offices in Kalispell, Glasgow, Glendive, Havre, Helena, and Missoula. These offices administer billions of dollars in loan guarantees, direct loans, and grants across Montana each year. For rural businesses, communities, and utilities, USDA Rural Development is often the single largest source of available financing. The Business and Industry (B&I) Guaranteed Loan Program is USDA Rural Development's primary tool for supporting rural business credit. The program provides loan guarantees up to 80 percent for loans up to $25 million, reducing lender risk and enabling banks to finance rural businesses they might otherwise decline. B&I loans can fund business acquisitions, real estate, equipment, working capital, and debt refinancing in eligible rural areas. Eligible borrowers include for-profit businesses, nonprofits, cooperatives, tribes, and public entities in rural areas. Businesses in cities over 50,000 population are generally not eligible. Interest rates and terms are negotiated between the borrower and the lender. Montana's rural economy makes most of the state eligible for B&I programs. Rural Business Development Grants (RBDG) support technical assistance and training for small and emerging rural businesses. Grants are awarded to nonprofits, cooperatives, and public bodies that then provide services to rural businesses. Typical uses include entrepreneurship training programs, business plan assistance, revolving loan fund capitalization, and feasibility studies. RBDG awards in Montana have ranged from $25,000 to $500,000. The ReConnect Program funds broadband infrastructure in rural areas that lack sufficient service, defined as areas where at least 50 percent of households lack access to 100 Mbps download and 20 Mbps upload speeds. Montana has significant rural broadband gaps, and the state has received substantial ReConnect awards. Grant amounts range from $25,000 to $25 million per award, with some loan and loan-grant combination options. The program prioritizes projects serving the most underserved areas and has funded fiber, fixed wireless, and other last-mile solutions across rural Montana. The Water and Waste Disposal (WWD) grant and loan program is USDA Rural Development's infrastructure counterpart to Montana's TSEP program. WWD grants cover up to 75 percent of project costs for the neediest communities, with the remainder financed through low-interest USDA direct loans. Eligible projects include drinking water systems, wastewater treatment, solid waste facilities, and storm drainage. Like TSEP, WWD prioritizes communities with low median household incomes and public health urgency. Applications are accepted on a rolling basis, and USDA Rural Development Montana staff work with applicants through the entire process. Many Montana communities combine WWD and TSEP funding to cover large infrastructure projects. Additional USDA RD programs in Montana include the Community Facilities Direct Loan and Grant Program (hospitals, schools, public safety buildings), Rural Energy for America Program (REAP, see Natural Resources section), and the Intermediary Relending Program for economic development loan funds.
Natural Resources and Renewable Energy
Montana's natural resource base, which spans 94 million acres including national forests, rangelands, and river systems, creates both opportunities and obligations for conservation and sustainable development. The state and federal government maintain several programs specifically designed to fund responsible management and renewable energy development. The Renewable Resource Grant and Loan Program (RRGL), administered by the Montana Department of Natural Resources and Conservation (DNRC), is the state's primary tool for funding water resource development, conservation, and renewable energy projects. The RRGL program provides grants up to $1,000,000 and loans up to $3,000,000 for projects that develop, manage, or protect Montana's renewable resources. Eligible applicants include local governments, conservation districts, tribes, and nonprofit organizations. Projects have included irrigation system modernization, water storage development, stream restoration, groundwater monitoring, and small hydropower feasibility studies. Applications are reviewed twice per year, in spring and fall. The Rural Energy for America Program (REAP), administered by USDA Rural Development, provides grants covering up to 50 percent of project costs for renewable energy systems and energy efficiency improvements at agricultural operations and rural small businesses. Grant amounts range from $2,500 to $1,000,000 for renewable energy systems, and from $1,500 to $500,000 for energy efficiency improvements. Eligible technologies include solar photovoltaic, wind turbines, anaerobic digesters, biomass, geothermal, small hydropower, and high-efficiency equipment. REAP is particularly active in Montana given the state's solar resource, wind resource, and large agricultural sector. Applications are accepted on a quarterly basis. The U.S. Department of Energy funds research, demonstration, and deployment programs relevant to Montana. The Bipartisan Infrastructure Law and Inflation Reduction Act created new DOE programs targeting former fossil fuel communities, rural clean energy access, and grid modernization. Montana's national laboratories connection through Idaho National Laboratory and other regional facilities creates some research partnership opportunities. DOE's Office of Clean Energy Demonstrations and Office of Economic Impact and Diversity both administer programs accessible to Montana communities and businesses. Conservation easements represent a significant non-grant funding mechanism for Montana landowners. The Natural Resources Conservation Service's Agricultural Conservation Easement Program (ACEP) pays landowners fair market value for permanent conservation easements protecting wetlands, grasslands, and working agricultural lands. Montana consistently ranks among the top states nationally for ACEP enrollment given the scale of working rangelands. Landowners also access easement funding through the U.S. Fish and Wildlife Service, the Montana Land Reliance, The Nature Conservancy, and private conservation buyers. Easement values vary widely based on development pressure and resource values, ranging from a few hundred to several thousand dollars per acre. Montana's DNRC also administers the Irrigation Development program, which provides low-interest loans for irrigation infrastructure, and the Conservation Districts Loan Program supporting local conservation district projects.
Tribal Programs and Reservations
Montana is home to seven federally recognized tribal nations operating on eight reservations. These are the Blackfeet Nation (Blackfeet Reservation), the Confederated Salish and Kootenai Tribes (Flathead Reservation), the Crow Nation (Crow Reservation), the Fort Belknap Indian Community (Fort Belknap Reservation, shared by Gros Ventre and Assiniboine), the Fort Peck Assiniboine and Sioux Tribes (Fort Peck Reservation), the Chippewa Cree Tribe (Rocky Boy's Reservation), and the Northern Cheyenne Tribe (Northern Cheyenne Reservation). Together these tribes govern approximately 8 million acres of trust and fee land. The Bureau of Indian Affairs (BIA) is the primary federal agency administering grant and loan programs for tribal nations. BIA Economic Development grants support tribal business development, infrastructure, and employment. The Tribal Energy Development Capacity (TEDC) program through the Department of Energy's Office of Indian Energy provides grants for tribal energy planning, feasibility studies, and capacity building. The Office of Indian Energy has awarded millions of dollars to Montana tribes for solar installation, energy efficiency, and microgrid development. The Fort Belknap and Blackfeet tribes have both received significant energy project funding in recent program cycles. Tribal college research funding flows through multiple channels. Montana is home to seven tribal colleges, including the Salish Kootenai College, Aaniiih Nakoda College, Blackfeet Community College, Chief Dull Knife College, Fort Peck Community College, Little Big Horn College, and Stone Child College. These institutions receive research funding through NSF Tribal Colleges and Universities Program (TCUP), USDA National Institute of Food and Agriculture tribal programs, NIH programs addressing tribal health disparities, and the Administration for Native Americans (ANA). Research grants to tribal colleges in Montana range from $50,000 to over $500,000 per award. Tribal tourism development receives support through the Administration for Native Americans (ANA) Social and Economic Development Strategies (SEDS) grants, SBA tribal programs, and USDA Rural Development Community Facilities grants for cultural centers and visitor infrastructure. Montana tribal tourism has grown significantly, with cultural tourism on the Crow Reservation and nature-based tourism on the Flathead and Blackfeet reservations attracting substantial visitor numbers. ANA grants up to $400,000 support language revitalization, economic development planning, and governance capacity projects. The USDA Rural Development programs described elsewhere in this guide are fully accessible to tribal nations as eligible applicants, including B&I guaranteed loans, Community Facilities grants, and Water and Waste Disposal programs. Tribal governments also access CDBG-Tribal funds through HUD's Office of Native American Programs, which provides formula-based community development funding. The Indian Health Service funds water and sanitation infrastructure on reservations through a separate appropriations stream. For tribal businesses, the SBA 8(a) Business Development Program and SBA's Office of Native American Affairs provide procurement preference and technical assistance access.
Research and University Grants
Montana's two flagship research universities, Montana State University (MSU) in Bozeman and the University of Montana (UM) in Missoula, together generate several hundred million dollars in annual externally funded research. Both institutions have active grants offices and partner regularly with private businesses, tribes, state agencies, and federal agencies on funded projects. Montana State University houses the MSU Office of Research Development, which coordinates major research initiatives across the institution. MSU strengths include agriculture and plant sciences (home to several USDA Agricultural Research Service programs), ecology and environmental science, engineering, computer science, and health sciences. MSU's Montana Agricultural Experiment Station administers research programs across several branch stations statewide. The university is a Land Grant institution, which means it receives annual Smith-Lever Extension funds and Hatch Act funds for agricultural research, creating ongoing research partnership opportunities for Montana agricultural producers and agribusinesses. The University of Montana Grants.gov portal and sponsored programs office support faculty across UM's diverse academic programs, with strengths in environmental law, forestry, wilderness science, journalism, pharmacy, and business. UM researchers are frequent recipients of NSF, NIH, NEH, and USDA competitive grants. The NSF EPSCoR (Established Program to Stimulate Competitive Research) program specifically targets states that have historically received lower levels of federal research funding. Montana qualifies for EPSCoR and has received multiple multi-million dollar EPSCoR Research Infrastructure Improvement (RII) awards. Recent Montana EPSCoR awards have focused on water resources, climate adaptation, and data science. EPSCoR funding builds research capacity at MSU, UM, and tribal colleges, and includes co-funding requirements that leverage state matching dollars. Montana's EPSCoR program is coordinated through the Montana Board of Research and Commercialization Technology (MRCT). The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are federal competitive grants available to small businesses conducting research with commercial potential. Montana small businesses compete for SBIR and STTR awards across all participating federal agencies, including NIH, NSF, DOE, USDA, and DOD. Montana's SBIR participation has grown steadily, particularly in agriculture technology, environmental monitoring, and health sciences. Montana SBDC and MSU's TechLink office provide free assistance to Montana companies pursuing SBIR and STTR applications. TechLink, based at MSU, specializes in connecting small businesses with DOD laboratory technologies and supporting DOD SBIR applications. The Montana Board of Research and Commercialization Technology (MRCT) administers a state-level competitive research grant program using Coal Trust Fund earnings. MRCT grants fund applied research projects with commercial potential in Montana, with awards typically ranging from $50,000 to $300,000. Projects must demonstrate a path to commercialization and economic benefit to Montana. MRCT grants are particularly useful for bridging academic research to private sector application, and the program welcomes university-industry partnerships.