Bear Paw Development receives $1.7M in CARES Act money to help COVID-impacted businesses

Staff and wire report

Havre-based Bear Paw Development Corp. is getting some help from the federal government to help businesses impacted by the coronavirus pandemic.

The U.S. Department of Commerce announced Thursday its Economic Development Administration awarded a $1.7 million Coronavirus Aid, Relief, and Economic Security — CARES — Act Recovery Assistance grant to Bear Paw to capitalize and administer a revolving loan fund to provide gap financing to coronavirus-impacted small businesses in Bear Paw Development’s economic development district.

Since 1969, Bear Paw, the oldest economic development district in the state, has worked to assist communities and businesses with planning and economic development in Blaine, Chouteau, Hill, Liberty and Phillips counties and the Fort Belknap and Rocky Boy’s Indian reservations.

The Commerce Department release said the EDA grant is expected to create 50 jobs, retain 70 jobs, and generate $3 million in private investment.

Bear Paw Development Executive Director Paul Tuss said receiving the award after going through a competitive grant process is great news. It will be added to the business revolving loan fund Bear Paw has administered for 35 years to make loans to people to expand or start a business.

He added that, although the grant is for helping businesses impacted by coronavirus, that applies to virtually everyone.

“I literally don’t know of a business that, in some form or fashion, hasn’t been impacted,” Tuss said. “These funds can be used broadly in our region to help businesses recover.”

Secretary of Commerce Gina Raimondo said in Thursday’s press release that the grant will help the Biden Administration’s goal of helping businesses and the economy recover from the pandemic.

“President Biden is committed to supporting small businesses, not only in their recovery from this pandemic, but as they build back stronger,” Raimondo said “This EDA investment will provide critical gap financing to aid existing small businesses and support the development of new entrepreneurial businesses in a five-county area in northern Montana.”

“The Economic Development Administration plays an important role in supporting community-led economic development strategies designed to boost coronavirus recovery and response efforts,” Dennis Alvord, acting assistant secretary of commerce for economic development said in the release. “This Revolving Loan Fund will provide small businesses in northern Montana with the financing they need to continue operations and create and retain jobs in the region.”

Montana’s U.S. senators also applauded the award.

“The coronavirus pandemic has hit Montana’s economy hard, and as our businesses work hard to turn things around, this funding will be a valuable support,” Sen. Jon Tester, D-Mont., said in the release. “These resources will help Bear Paw Development Corporation continue assisting Havre’s Main Street businesses as they recover, get folks on the Hi-Line back to work, and put Montana’s economy back on the right track.”

“Montana small businesses have faced incredible challenges throughout this pandemic and stepped up to continue providing essential services to our communities,” Sen. Steve Daines, R-Mont., said in the release. “I am pleased to announce they are receiving needed support with these grants, so they can continue to thrive.”

The project was made possible by the regional planning efforts led by Bear Paw Development, which EDA funds to bring together the public and private sectors to create an economic development roadmap to strengthen the regional economy, support private capital investment, and create jobs.

The project is funded under the CARES Act, Public Law 116-136, which provided EDA with $1.5 billion for economic assistance programs to help communities prevent, prepare for, and respond to coronavirus. EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau's flexible Economic Adjustment Assistance  program, provides a wide range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic.