Bear Paw Development extends loan fee reduction

The local economic development agency announced this week it is extending to the end of the year a loan fee reduction to help local entrepreneurs with their businesses.

“What we discovered over the past three months is a fairly significant demand by businesses in our region to expand, remodel, grow, try something different, add a new line, purchase new equipment or enter a new market. All of these opportunities typically require financing that may not be easy for every business to obtain,” Paul Tuss, executive director of Bear Paw Development Corp., said in a press release. “So we have decided to extend this significant reduction in our loan origination fees through the end of December, which will make obtaining financing even that much more affordable for area businesses.”

The 26 percent reduction in loan origination fees was announced in July. The reduction means a business owner taking a $100,000 loan with a 1 percent fee would save $260 up front.

Bear Paw, the oldest federally recognized economic district in Montana now in its 45th year, covers a region comprising Hill, Blaine, Liberty, Phillips and Chouteau counties and the Rocky Boy’s and Fort Belknap Indian reservations.

Brittnee Zanto-DeLaRosa, director of loan services for Bear Paw, said Bear Paw’s revolving loan fund has helped local people start or expand businesses for 26 years.

“For over a quarter of a century, Bear Paw Development has invested in the health and growth of northern Montana’s business community. This has occurred one business at a time, but the cumulative impact of our small business lending activity is evident on Main Street in every community we serve,” Zanto-DeLaRosa said. “Since 1988, Bear Paw has approved nearly 340 loans to businesses of every size in our region. This activity represents more than $24.2 million that has gone directly into businesses to help them grow and succeed. This business lending has also helped to create or retain approximately 1,260 jobs in our rural part of Montana.”

Tuss said the reduction in loan origination fees is an immediate and up-front way to help make business lending more affordable for entrepreneurs.

“By reducing the cost to secure a loan from the very start, we are making financing a business purchase, expansion or start-up that much easier for our private sector partners. We know that every dollar counts, especially for small businesses,” he said. “Given the great response we received to our summer-time reduction of origination fees, we thought we would extend this offer to entrepreneurs for the remainder of the year.”

Bear Paw also has other services to help local entrepreneurs, including counseling and technical assistance for developing business plans, cash flow projections and other details that are necessary to become successful.

Business services are provided through both Bear Paw’s Small Business Development Center and the Food and Agriculture Development Center, which are both part of statewide networks designed to assist small business entrepreneurs and value-added agricultural clients with their projects.

For more information about the loans or other Bear Paw services, people can call 265-9226, or visit Bear Paw’s website at http://www.bearpaw.org.