About this programme
The Montana Automation Financing Program is run by the Montana Department of Commerce to give financial assistance to Montana-based manufacturing businesses upgrading, replacing or expanding equipment through automation and modernization. It aims to help businesses modernize and grow without primarily cutting headcount: the guidelines state the program is 'not intended to replace jobs but to empower businesses to scale while upskilling their workforce.'
The program has two components: Direct Loans, made straight from Commerce to an eligible business, and Collateral Support, which backs loans made by participating lenders when a lack of collateral is the main barrier to approval. This guide covers the Direct Loan component. Funding was expected to become available beginning September 2026, deployed on a revolving basis, with the total available balance dependent on loan repayments and announced before each application cycle opens.
Total Direct Loan funding for the program is $1.4 million.
How it works
Direct Loans go up to $100,000 per eligible applicant, with no stated minimum. Applicants are expected to request the least financing necessary to complete the project, and Commerce may approve a lower amount than requested based on underwriting and program capacity.
An eligible applicant can receive no more than a cumulative $1,000,000 in Automation Program assistance over the life of the program, counting any past Automation Loan Participation Program loans plus all new Direct Loan or Collateral Support assistance.
Base fixed interest rates are 2.00% for loans with terms up to five years, and 2.50% for terms greater than five years and up to seven years. Loan terms run up to seven years, with a preference for a five-year payback, and amortization schedules can extend up to 20 years as long as the stated maturity does not exceed seven years.
Applicants who complete a Capital Investment Justification Report with the Montana Manufacturing Extension Center (MMEC) showing a positive return on investment get a 1.00% reduction off the applicable interest rate, for the full term of the loan, as long as they stay in compliance with program and loan requirements.
Commerce may approve a payment deferral of up to one year, including interest-only or fully deferred structures, set at closing.
All Direct Loans must be secured with fixed assets, personal guarantees, other collateral acceptable to Commerce, or a combination. Commerce services the loans directly, with payments made via ACH.
Who can apply
Be a Montana-based manufacturing business in good standing with the Montana Secretary of State's Office or the applicable Tribal government.
Derive at least 51% of its revenue from the sale of manufactured goods.
Have been registered with the Montana Secretary of State's Office (or applicable Tribal government) and in operation for at least two years before applying.
Not be debarred from doing business with the State of Montana or the federal government.
The project itself must upgrade, replace or expand equipment in a way that automates processes or improves workflow efficiency, and support the long-term viability and growth of the manufacturing operation.
How to apply
- Direct Loans open with an initial competitive application cycle, announced through Commerce's website and press channels, specifying the application period, required materials, available funding and any cycle-specific priorities.
- Submit all required financial information by the stated financial information deadline; applications missing it by the deadline cannot be underwritten or scored in that cycle.
- After the initial cycle, Commerce reviews complete applications and the Loan Review Committee scores and ranks them, recommending awards to Commerce leadership for a final decision.
- After the initial cycle closes, the Direct Loan component stays open on an ongoing basis, subject to available funds; Commerce publishes the current available balance at least quarterly and may temporarily pause new applications if funds are fully committed.
- Apply through the Montana Grants and Loans Portal at montana.servicenowservices.com/mtgl, which requires creating an Okta account.
Documents you’ll typically need
- Program application form
- Documentation of business eligibility and good standing
- Description of the proposed Automation Project, including budget, sources and uses, and anticipated benefits
- Quotes or cost estimates for the equipment and installation
- Historical financial statements and, where needed, projections and a debt service analysis
- Borrower Application Checklist and Montana Automation Finance Program Scorecard
Frequently asked
How much can a business borrow through a Direct Loan?
Up to $100,000 per eligible applicant, with no stated minimum, though applicants are expected to request only what the project needs.
What interest rate applies?
A fixed 2.00% for loan terms up to five years, or 2.50% for terms over five and up to seven years. Applicants who show a positive ROI through a Capital Investment Justification Report with MMEC get a 1.00% rate reduction for the loan's full term.
Is there a lifetime cap on assistance from this program?
Yes. An eligible applicant can receive no more than $1,000,000 total across the program's life, including any prior Automation Loan Participation Program loans and all new Direct Loan or Collateral Support assistance.
How long has my business needed to be operating?
At least two years before applying, registered with the Montana Secretary of State's Office or the applicable Tribal government.
Can the loan be used for working capital?
No. General operating expenses and working capital requests are explicitly ineligible, as are loan application preparation costs and the intangible value of a business.
When does this program start accepting applications?
Funding was expected to become available beginning September 2026, with the initial competitive cycle announced through Commerce's website and standard press channels.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.