Trust Fund Loan Program

Loans from the Trust Fund Loan Program (TFLP) are made from the Permanent Coal Tax Trust Fund managed by the Montana Board of Investments. Short and long term loans are both available under this program as they are applicable to credit of the borrower, the type of financing, and the term of the loan. Authority Board approval is required.  

 General Loan Terms

  • Minimum loan size: $250,000
  • Maximum loan size: $1,500,000
  • Five years for equipment
  • Twenty years for real estate
  • Take out loan available for bank financed construction loans

General Loan Guidelines

  • Current ratio > 1.50
  • Debt service coverage > 1.35
  • Days cash on hand > 42
  • 20% equity preferred
  • Operating margin > 0.5%


  • Origination fee: 1%
  • Borrower out-of-pocket expenses include borrower attorney, recording fees, etc.
  • Monthly loan service fee: 50 basis points.
  • Appraisal and environmental audit fees for real estate loans.

Interest Rates

  • Interest may be locked in for a 12 month period with receipt of 50% of origination fee (contingent on Authority Board approval).
  • Trust Fund Loans are based upon the prior monthly average of the Federal Home Loan Bank of Des Moines ("FHLB") Fixed Advance Rate for the respective loan terms. 

5-Year Term

  • 5-year FHLB Advance rate plus 0.60%, or 2.25% whichever is greater.
  • Current rate of 2.25% effective 5/31/2021

7-Year Term

  • 7-year FHLB Advance rate plus 0.60%, or 2.50% whichever is greater.
  • Current rate of 2.50% effective 5/31/2021

10-Year Term

  • 10-year FHLB Advance rate plus 0.65%, or 2.75% whichever is greater.
  • Current rate of 2.75% effective 5/31/2021

15-Year Term

  • 15-year FHLB Advance rate plus 0.65%, or 3.00% whichever is greater.
  • Current rate of 3.05% effective 5/31/2021

20-Year Term

  • 20-year FHLB Advance rate plus 0.70%, or 3.25% whichever is greater.
  • Current rate of 3.46% effective 5/31/2021

Expedited Loan Process

  • Usually these loans can be processed in 60 days or less. Documents generally consist of a loan agreement and a security agreement. Contact the Authority for application. Staff may approve the loan, or present to the Authority Board for consideration. The Authority staff will draft the loan documents and the closing will occur through the mail.

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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