Moving Montana forward in challenging times According to the U.S. Small Business Administration, Montana is home to over 123,000 small businesses that employ more than 65% of our private workforce. Entrepreneurship and small business is clearly the backbone of our state.
Bob Burns Missoula Market President of Stockman Bank.
But the past few months have been challenging for our small business community. 2020 has not been kind. No one could have predicted the events of the past six months and it’s uncertain what the next six months will bring.
As the COVID-19 health crisis unfolded, our state was forced to shut down and “shelter-inplace” to slow down the spread of the virus. While necessary, the shutdown was devastating to Montana’s small business community. As business bankers, we knew first-hand from our customers, the overwhelming challenges that were facing them. So, when Congress approved
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MISSOULA BUSINESS • SUMMER 2020
the Paycheck Protection Program, we made sure we were ready. Our bankers worked long hours, often through the night, to help our customers obtain PPP loans. We also answered the call from other Montana businesses that were not able to receive assistance from their own banks. Over the past three months in Missoula, we have helped 281 Montana businesses obtain Paycheck Protection Program loans totaling over $35 million. Statewide, Stockman Bank has helped nearly 3,300 Montana businesses obtain Paycheck Protection Program loans totaling over $300 million. These loans helped local businesses keep their doors open and their people employed.
1. "First and foremost, don’t just automatically run out and borrow as much as you can. The State of Montana, US Small Business Administration and other agencies have some helpful programs. However, it may not be best for your situation to borrow the maximum from each eligible program. Make sure you understanding the parameters (eligibility, payback/forgiveness, reporting/
3. "Do strategic planning about your business needs. Don’t just go back to what you were previously doing. Plan how your business will operate during this restart period and then the next phase after restart. You will need to scale your business, plan your budget, inventory, work force, and other aspects accordingly. Unfortunately, it is not, and will not, just be business as usual. Many business models will be permanently changed."
Over the past three months in Missoula, we have helped 281 Montana businesses obtain Paycheck Protection Program loans totaling over $35 million.
Now, as we look ahead to the second half 2020, our business bankers and lenders are ready to help businesses move forward, one step at a time.
So what should businesses be doing right now to move forward through this crisis? Stockman CEO, Bill Coffee, has participated in numerous meetings, discussions and media interviews over the past few months and is often asked this very question. Here is his answer:
monitoring, etc.) and your anticipated use of the funds." 2. "Give serious thought, with realistic expectations, to how long it will take you to get back to pre-COVID levels. I believe it will take most small businesses 12-18 months to get back to these levels. Some will never get back to these levels."
4. "After this thorough soul searching, planning and projecting, contact your banker to discuss the available options. Focus on your specific needs and what you anticipate the future holds." As the PPP’s debt forgiveness process gets underway, it’s important to keep yourself informed and in touch with your banker. You can find detailed PPP information at www. sba.gov or by contacting your lender.
We are on the road to recovery. It just may be slower than we all would like. The key is continued support of our local businesses. When we help our local businesses move forward, we move our communities forward, which then moves Montana forward. Bob Burns is the Missoula Market President of Stockman Bank.
