Montana Expands Business Lending as Timber Harvest Goals Double Statewide

HELENA — The Montana Department of Commerce has relaunched its Wood Products Revolving Loan Fund with revised guidelines designed to streamline access to capital and expand financing options for the state’s wood products industry.

The fund is now accepting new applications under updated guidelines adopted this month. The program provides state-funded financing to wood products businesses for working capital, equipment purchases, infrastructure upgrades, land acquisition or lease, and debt service. The fund loans are typically used by businesses such as sawmills, woodworking shops, and trucking companies that transport timber.

The fund’s relaunch comes amid renewed momentum for Montana’s timber industry. The state committed to harvesting 100 million board feet annually through a landmark forest management agreement signed in June, with federal timber goals set to double Montana’s harvest to approximately 250 million board feet by 2034.

Under the updated guidelines, the fund will operate with a two-tier lending structure:

• Loan Participation Program: For requests between $1 million and $2 million, Commerce will partner with enrolled lenders to co-finance loans and share risk.
• Direct Lending: For funding requests under $1 million, Commerce will continue to issue loans directly to eligible businesses.

The Department of Commerce has modernized the fund by adding loan participation options to increase lending flexibility and dramatically reducing the guideline length from 39 pages to just 12. The department also eliminated outdated provisions and simplified language to reduce administrative burden for borrowers and partners.

“These updates reflect our commitment to improving the delivery of state financing tools and expanding their reach,” said Montana Department of Commerce Director Marta Bertoglio. “By working in partnership with local lenders, we can bring more resources to the table and meet the evolving needs of Montana’s wood products industry.”

Since the fund’s inception in 2009, the Wood Products Revolving Loan Fund continues to drive economic activity in Montana. According to the fund’s 2024 annual report, as of June 2024, the average output per worker across the industries loan recipients did business in was equal to $441,566 per worker, translating to an estimated $138.2 million in production within the Montana economy.

The application portal will remain open until all available funding has been committed to eligible businesses. Applications will be reviewed on a rolling basis. According to the Department of Commerce website, the WP RLF currently has $4,191,317.19 available for lending.

For more information, businesses can call the Wood Products Revolving Loan Fund team at Commerce at 406-841-2594.