BLDC reports $3.7 million available to lend; approves $78,000 loan to local business

At the June 4, 2025 meeting of the Butte-Silver Bow Economic Development Committee, Kelly Sullivan, a representative of the Butte Local Development Corporation, said the BLDC had approved a $78,000 loan to "Abute Business" and reported roughly $3.7 million available to lend from multiple sources.

"We just approved a $78,000 loan to Abute Business," Sullivan said. She said the BLDC has one other loan application pending and three projects in the Brownfields loan pipeline that could draw on earlier Brownfields RLF funds; if all three Brownfields loans are made, they would total about $848,000 from the prior Brownfields RLF.

Sullivan provided a breakdown of current lending capacity: about $1,800,000 in what she described as general funds, about $1,400,000 in tourism funds, and about $540,000 in the Big Sky Economic Development Fund awarded the previous year. She also said a loan client was expected to make a payoff of about $125,000 soon, which would return that money to the lending pool.

Committee members questioned the lending criteria and interest rates. Commissioner Larry asked whether the $3.7 million carries advantaged interest rates or is intended for borrowers who cannot obtain bank loans; Sullivan said most borrowers are not bankable and the BLDC loans carry somewhat higher interest rates than banks. "Most of the time, they are not bankable and so then they come to us. So it's a little higher risk loan. The interest rate on it is a little bit higher than a bank," she said.

Sullivan said the BLDC uses revolving loan proceeds to support local businesses that lack conventional access to bank financing and that payoffs return capital for new lending. No formal committee vote or policy change was taken on lending terms during the meeting.