Master Loan Program

The Master Loan Program enables qualified borrowers to access the tax-exempt capital markets at investment grade interest rates. Documents are standardized and bonds can be marketed for more than one borrower at a time, reducing the costs of issuance for each.


Program Structure

  • Loans tailored to meet the Borrower's current and future capital financing needs
  • Credit support provided by the Montana Board of Investments results in a lower interest rate
  • Terms of up to 20 years
  • Bonds marketed for a single borrower or a group of borrowers with each borrower responsible only for its own series of bonds
  • Capitalized interest funding is available during the construction period


  • Investment grade bond interest rates have historically provided a lower cost of capital
  • Issuance costs are shared by all borrowers and are therefore kept to a minimum
  • Construction escrow accounts can be created, eliminating the need and cost for interim construction financing

General Loan Guidelines

  • Days cash on hand > 42
  • Days in accounts receivable < 62
  • Current ratio > 1.5
  • Operating margin > 0.5%
  • Debt to capitalization < 67%
  • Debt service coverage ratio > 1.35 for the two prior fiscal years and forward, including additional debt service 


Eligible Projects

  • Equipment purchases
  • Reimbursement of capital expenditures made during current fiscal year, as approved by bond counsel
  • New facility construction
  • Renovation of existing facilities
  • Refundings or refinancing of outstanding debt

Board of Investments Enhancement Fee

A fee schedule has been established taking into consideration the duration of the enhancement, the structure of the bond issue, and the organizational entity (governmental or not-for-profit). That fee is paid to the Montana Board of Investments when the bond issue is closed and has averaged between 95-115 basis points (0.95% - 1.15%) of the principal amount of the bond issue.


Loan Process

The Master Loan Program is an attractive financing vehicle for your particular project and requires the borrower to send correspondence to the Authority describing the project and requesting an application. Once the application is completed, the Authority Staff will present it to the Authority Board and to the Montana Board of Investments for approval. Staff will provide additional information or clarification on the process.

2401 COLONIAL DR. 3rd Floor | PO BOX 200506 | HELENA, MT 59620-0506 | P: (406) 444-0259 | F: (406) 444-0019 | TDD: (406) 841-2702

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