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Idaho loan fund set up for ‘nearly bankable’ businesses

Telaya Wine Co. owners Earl and Carrie Sullivan opened their new Garden City winery with a loan from Montana & Idaho Community Development Corp. Here they are hosting a reception for the Missoula-based lender to "nearly bankable businesses." Photo courtesy of Montana & Idaho CDC.

Telaya Wine Co. owners Earl and Carrie Sullivan opened their new Garden City winery with a loan from Montana & Idaho Community Development Corp. Here they are hosting a reception for the Missoula-based lender to “nearly bankable businesses.” Photo courtesy of Montana & Idaho CDC.

Missoula-based Montana & Idaho Community Development Corp. and Boise-based Capital Matrix have set up a fund dedicated to loans for Idaho businesses.

Both nonprofits specialize in financing “nearly bankable” business that can’t get bank loans.

Capital Matrix supplied a $150,000 seed fund for Montana & Idaho CDC to establish an Idaho lending fund. Until now, Montana & Idaho CDC has funded Idaho businesses from the same program that covers loans in both states.

MICDC, established in 1986, started lending in Idaho in late 2015. Idaho now makes up 52 percent of the of its loan volume, and that’s expected to increase to 54 percent or 55 percent by the end of the year, CEO Dave Glaser said.

Idaho was added to the nonprofit’s name in 2016.

Montana & Idaho has lent to 52 Idaho businesses, including high-profile tenants Richard’s restaurant, Zeppole Baking Co., and Telaya Wine Co. The Idaho loans totaled $5.1 million in 2016 and Glaser anticipates $10 million by the end of fiscal 2019.

Glaser expects to issue 50 loans in Idaho this year and 70 small business loans next year. He intends to leverage the $150,000 seed fund to as much as $10 million with loan repayments reinvested into more business loans.

Montana & Idaho CDC loans are designed for small business owners to purchase real estate, equipment, or inventory; to acquire an existing business; or for remodeling or working capital. Capital Matrix offers loans to similar “nearly bankable” businesses when they are ready to make the transition from leasing to owning space, said Ann Munroe, president of Capital Matrix, a Boise-based nonprofit licensed and regulated by the U.S. Small Business Administration to administer the SBA 504 loan program.

“It doesn’t just have to stay with real estate (loans),” Munroe said. “We can help at the front end to help business grow.”

Montana & Idaho has its Boise office at Capital Matrix.

Capital Matrix intends to make annual deposits into the Idaho fund based on revenues each year, Munroe said.

 

About Teya Vitu

Teya Vitu is an Idaho Business Review reporter, covering commercial real estate, construction, transportation and whatever else may intrigue him in the moment. Join me on Twitter at @IBR_TeyaVitu.