Small businesses face tough choices

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. 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. Bob Burns As the Missoula COVID-19 health Market crisis unfolded, our President of Stockman Bank. 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 the Paycheck Protection Program, we made 1. "First and foremost, don’t just 3. "Do strategic planning about your sure we were ready. Our bankers worked automatically run out and borrow as much business needs. Don’t just go back to what long hours, often through the night, to as you can. The State of Montana, US Small you were previously doing. Plan how your help our customers obtain PPP loans. We Business Administration and other agencies business will operate during this restart also answered the call from other Montana have some helpful programs. However, it period and then the next phase after restart. businesses that were not able to receive may not be best for your situation to borrow You will need to scale your business, plan assistance from their own banks. the maximum from each eligible program. your budget, inventory, work force, and Over the past three months in Missoula, we have helped 281 Montana businesses obtain Paycheck Protection Program loans totaling over $35 million. Make sure you understanding the parameters (eligibility, payback/forgiveness, reporting/ Over the past three other aspects accordingly. Unfortunately, it is not, and will not, just be business as usual. Many business models will be permanently changed." 4. "After this thorough soul Statewide, Stockman Bank has helped nearly 3,300 Montana months in Missoula, we searching, planning and projecting, contact your banker to discuss businesses obtain Paycheck Protection Program loans have helped 281 Montana the available options. Focus on your specific needs and what you totaling over $300 million. These loans helped local businesses businesses obtain Paycheck anticipate the future holds." As the PPP’s debt forgiveness keep their doors open and their people employed. Protection Program loans process gets underway, it’s important to keep yourself informed and in

Now, as we look ahead to the totaling over $35 million. touch with your banker. You can find second half 2020, our business detailed PPP information at www. bankers and lenders are ready to sba.gov or by contacting your lender. 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." 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.

Wheat is Montana's big winner in USMCA

TOM LUTEY, Lee MT Newspapers

editor@missoulian.com

Montana farmers selling grain into Canada made small gains in the U.S., Mexico, Canada trade agreement launched earlier this month.

Canadian elevators starting July 1 were to fairly grade a handful of U.S. wheat varieties planted in Montana. For years, U.S. wheat varieties unrecognized in Canada were downgraded to animal feed status and discounted in price, regardless of whether the grain was of high milling quality.

“It allows Montana grains to be treated on an equal basis with Canadian grains when they’re shipped north. And that has been a sore spot,” said Mike Cuffe, Pacific NorthWest Economic Region president.

Cuffe, who is also a Republican state senator from Eureka, advocated for the new grain terms. “My understanding was that there was a real imbalance. Any wheat going north was automatically dropped to a feed wheat, feed grain, cattle feed value, which was the lowest valued product, even if it was used for fine pastry.”

Montana Wheat and Barley Committee Executive Vice President Cassidy Marn said that three wheat varieties planted in Montana are recognized in Canada. Getting more varieties recognized will involve Canadian research and approval, which could take a few years. "They have the option now, so that's an improvement, at some level, if the price was ever favorable for us to go north," Marn said.

At first glance, the biggest advantage in USMCA is that Montana lost very little in the new trade agreement. Terms for shipping Montana malt barley into Mexico remained unchanged. Sugar exported into the U.S. from Mexico didn't increase, though Canadian sugar exports did, a change that could negatively influence the domestic price paid for Montana beet sugar.

Nationally, the big selling point for USMCA replacing the North American Free Trade Agreement was a retooling of auto manufacturing rules. U.S. automakers with operations in all three nations will have to use more parts made in North America. The pay of the workers making those parts

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also increases, a change that makes it less Both Montana Sens. Steve Daines, a advantageous to shift auto manufacturing to Republican, and Jon Tester, a Democrat, Mexico. voted for USMCA.

The new trade agreement also sets terms Montana’s sugar beet farmers had a for intellectual property and digital trade, stake in USMCA, as well. The $100 million which weren’t on the horizon when NAFTA industry is comprised of beet acres along was negotiated more than 26 years ago. the Yellowstone and Big Horn Rivers and NAFTA was initiated by the administration of sugar factories in Billings and Sidney. Trade President George H.W. Bush and finalized by organizations for beet and cane farmers were Democratic President Bill Clinton in 1993. concerned early that USMCA would result

But NAFTA was opposed by labor in more sugar imports from Canada and unions and the left-leaning agricultural Mexico. groups alike. The trade agreement made it easier to relocate manufacturing jobs to cheaper markets, while also granting better U.S. access to beef, vegetables and other farm products from Canada and Mexico. Imports drive sugar prices down. The U.S. government uses a sugar quota system, which requires the government to begin buying sugar from U.S. manufacturers at a base price when imports drive prices lower.

President Donald Trump made a 2016 Mexico is the largest sugar exporter to the campaign promise to get rid of NAFTA, U.S. USMCA allows more Canadian sugar which he called the worst deal ever. Congressional Republicans throughout the into the United States. USMCA process recognized the new trade The Sweetener Users Association, agreement was very similar to NAFTA. a group of confectioners and candy Senate Finance Committee Chairman companies who opposed the U.S. sugar Chuck Grassley, an Iowa Republican, quota system and advocated for more referred to USMCA as “new NAFTA” when sugar imports, praised the increased sugar the Senate approved it in January. imports from Canada. . Realty Can Hit Hard.

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