Senators debate $6 million loan program aimed at reopening closed sawmills

Representative John Fitzpatrick (House District 76) presented the Montana Sawmill Revitalization Act, which would appropriate $6,000,000 of capital development funds to the Board of Investments to offer low-interest loans to entities seeking to reopen sawmills closed in the prior 48 months.

Proponents testified that the timber sector has lost capacity and jobs — with testimony citing closures, lost log markets and impacts on forest-management capacity and wildfire risk. Grant Kier of the Missoula Economic Partnership and others said the loan program would act as a lever in larger capital stacks to attract private investment and restore processing capacity in Western Montana.

Opponents — including Sun Mountain Lumber — argued the bill is too narrowly written (limited to recently closed mills) and could disadvantage operating mills, worsen byproduct markets and fail to address supply constraints derived from federal land management and litigation.

Questions from senators covered project eligibility, whether the loan would be direct or paired with lenders (Board of Investments indicated it would work with qualified lenders and participate as a portion of a capital stack), workforce and housing constraints in mill communities, and potential competition with existing mills. The sponsor emphasized the program is intended as leverage and not full project funding.

Ending: Committee discussion closed with no vote taken; sponsors and Board of Investments staff offered to provide technical details for executive action.