Montana’s Commerce Department has created a US$10m fund aimed at stimulating the state’s flagging timber industry.
This month it expects to approve at least three or four major loans to mills and timber processing businesses to help them buy new equipment or just stay in business. The loans are expected to range from US$200,000 to US$1m. Interest is charged a 4%.
As available credit and demand for timber have diminished during the recession, many of Montana’s timber businesss are struggling.
“We don’t want Montana to become like Colorado or other states, were you can’t even find a mill,” said Commerce Department deputy director Andy Poole.
“The banks are reluctant to lend [timber businesses] any more money at this point so somebody needs to step in and fill that hole; that’s what the state is doing.”
