HELENA – At least 15 wood businesses are likely to receive the first $1 million from a new revolving loan fund created to shore up Montana’s ailing forest products industry.
Gov. Brian Schweitzer proposed the fund and the Legislature allocated $11.3 million for the account.
The Missoula Area Economic Development Corporation is distributing the first small grants of between $10,000 and $25,000 over the next few weeks. Logging companies, mills and other industry businesses are encouraged to apply.
“We’ve got a few i’s to dot and t’s to cross, but we’re hoping to get it out fast,” said Chad DeLong, senior vice president with the Missoula-based nonprofit.
The nonprofit must repay the $1 million to the state over the next 15 years. It is also seeking a $1 million matching grant from the state Board of Investments to provide more aid.
The state Commerce Department estimates the money will save about 600 jobs in the wood industry, which has been hit hard by a decline in construction during the economic downturn.
Larger loan amounts, with a cap of $2 million, also will soon become available for the state’s big mills, DeLong said.
The Missoula development corporation is working with the state Commerce Department to distribute the loans, which are funded with state and federal dollars.