Welcome to the Montana Rural Explorer, USDA Rural Development Montana's monthly newsletter where you will find updates on funding opportunities and activities related to our Business, Cooperative, Energy, Electric, Telecommunications, Water and Environmental, Community Facilities, Multi-Family Housing, and Single Family Housing programs.
Energy Efficiency, Entrepreneurism & the Economy
A message from Montana's Business & Cooperative Programs Director, Lad R. Barney
I think we can all agree that this year’s summer season has exemplified how resilient, flexible, smart and committed our entrepreneurs are across rural Montana. With unseasonably high temperatures, staffing shortages, and recovery from the COVID-19 pandemic, just to name a few challenges affecting Montana’s industries and tourism-based economies, the idea of taking control of more of your variable expenses, like energy, has never been more important. Which is why I’m excited to note that we are currently accepting applications for loan guarantees and grants for renewable energy systems; and to make energy efficiency improvements, conduct energy audits and provide development assistance. Funds are being made available under the Rural Energy for America Program (REAP) for Fiscal Year 2022. While applications for loan guarantees, through your local commercial lender, are accepted year-round, the deadline to apply for grants of $20,000 or less or a loan/grant combo for $20,000 or less is Oct. 31, 2021, and applications for unrestricted grants or unrestricted loan/grant combos are due by March 31, 2022. If you’re interested in technical assistance grants, be sure to submit your REAP application for that particular program by Jan. 31, 2022. Funds go fast! So, contact us today to get started on your project.
Using the REAP program to fund energy efficiency improvement projects and reducing your energy load is a great way to lower those variable expenses, as well as, considering the installation of renewable energy systems, such as solar arrays. As you read this month’s newsletter, you’ll see a prime example of this as we highlight Carol Lynn Lapotka’s ReCreate Designs storefront on Main Street in Polson. Carol Lynn used two separate REAP grants to help offset the cost of replacing the windows, changing the insulation, upgrading the lighting system to LED energy-efficient lights, and installing new front doors so her shop, which resides inside the historic 1909 building she purchased in 2019, is as energy efficient as possible. You can find more on her REAP journey below.
You'll also find an article highlighting our Business & Industry Loan Guarantee Program, which provided Montana Craft Malt Company a guaranteed loan through TrailWest Bank, for the construction of a state-of-the-art malt processing plant as well as provide short-term working capital needed to continue operations despite massive shut-downs and product shortages caused by the COVID-19 pandemic. MCM also worked with Headwaters RC&D to secure funding through our Rural Business Development Grants program so they could grow and strengthen their marketing and website integration.
In the “Upcoming Events” section, you’ll find a link for the August 19 webinar with the Montana Cooperative Development Center to discuss our Rural Economic Development Loan and Grant program and best practices for establishing and operating a USDA RD revolving loan fund.
Plus, in this month’s edition, we are showcasing the two new police vehicles that Darby, Mont. received through our Community Facilities Direct Loan & Grant program. These two Dodge Durango SUVs are aiding Darby’s Marshal, Larry Rose, and his deputy, in partnering with county, state and Federal law enforcement to protect the Bitterroot Valley and effectively deal with the influx of traffic that has resulted from increased tourism and a burgeoning population.
I am so excited about all of the innovative practices happening throughout rural Montana and can promise that we have many more success stories to tell. Since we just don’t have enough space in this month’s edition of The Montana Rural Explorer to highlight them all, we will be posting additional stories – just like yours - to our Twitter page throughout the coming months. So, give us a “like” on Twitter and stay tuned for more on how USDA RD dollars are helping Montanans achieve energy efficiency, entrepreneurism and a thriving economy throughout the state.
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Montana's Business & Cooperative Programs Team
Craft Malt Company Germinating Growth in Butte
Montana Craft Malt Company (MCM), which sprouted as an idea from a 2016 white paper published by the State Department of Agriculture and the Department of Commerce, is now America's first commercial-scale specialty malting plant. With the help of a USDA Rural Development Business & Industry Loan Guarantee, MCM notes that they have become the "biggest of the little guys" in the craft space, using controlled germination to trick the grains into waking up. With this method, Montana Craft Malt Company yields up to 10,000 metric tons of product annually using Montana-grown barley.
"Our goal was to be the supply hub for Montana brewers and growers," shared Matt Drew, the director of marketing for Montana Craft Malt. "We've exceeded these expectations and have established worldwide malt distribution to breweries and distilleries, as well as a process to do contract malting and toll processing."
However, COVID-19 challenges related to brewery and distillery closures and supply chain challenges almost waylaid their success, forcing MCM to seek creative ways to address their financials and remain operational.
"We worked through TrailWest Bank to obtain a USDA Business & Industry loan, giving us the working capital we needed to cover costs," Drew noted. "We chose this option because the B&I loan terms made sense for our longer-term goals."
"TrailWest Bank is proud to finance Montana Craft Malt by partnering with the USDA B&I program. Jen O’Brien and her team created a business that showcases what Montanans can accomplish with the right leadership and financing," added Ryan Sears, the associate vice president of loans and investments for TrailWest Bank in Dearborn.
With the B&I loan in place, and four germination vessels at the ready, MCM quickly ramped up operations and began producing about 35 tons of malt per batch. But they knew they needed some additional technical assistance to ensure their online presence was as noteworthy as their commercial facility. So, MCM reached out to Headwaters RC&D for assistance. Headwaters had received USDA Rural Business Development Grant program funding, which was designed to provide technical assistance and training for small rural businesses. With these monies, Headwaters provided MCM with two separate awards that were used for marketing assets and website integration. Now, Montana Craft Malt is telling the story of how one idea sprouted into a world-class operation which remains rooted in Montana's agricultural landscape.
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Bringing Micro-Manufacturing Back to Main Street
When Carol Lynn Lapotka purchased an historic building on Polson, Mont.'s Main Street to house REcreate Designs, LLC., her small-batch manufacturing plant and artist co-op, she knew renovations would be needed.
"I want to do what is right," Lapotka noted when discussing the desire to incorporate green building practices into her strategy. "I never want to pass up an opportunity because of money." With USDA RD REAP grant funds, and some additional incentives through Mission Valley Power, Carol Lynn was able to refit her edifice, built in 1909, with LED lighting, energy-efficient windows, and insulated front doors. Since the 2020 retrofit, REcreate has realized nearly $3,400 in cost savings and about a 50 percent reduction in energy use.
This provided Lapotka the funding needed to manufacture and donate 10,000 masks to her local community for the COVID-19 response and employ one full-time and two part-time employees in her Main Street shop, where it all happens.
Giving back is a critical part of Carol Lynn's business concept. She has positioned REcreate as a member of 1% for the Planet, donating 1% of their sales to local non-profits. Lapotka is on the Board of Directors for the Polson Business Community, a Made in Montana retailer, and a presenter of the MADE fairs, an alternative arts and craft market. "My goal," Lapotka shares, "is to bring small-batch manufacturing, using raw materials resourced from area second-hand stores, back into the mainstream. It offers a different level of quality, professionalism and scale and keeps an estimated 3,000 pounds of waste out of our landfills every year."
Additionally, REcreate is focusing on the online promotion of their artists so creators, like Lapotke, can connect with consumers to tell a product's origin story and educate them about Montana-based craftsmanship.
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OTHER NEWS YOU CAN USE
Chasing Down Lawbreakers in the Bitterroot Valley
As Darby's Chief of Police since 1984, Marshal Larry Rose has been a fixture in this rural Montana community and, with the help of his Deputy, works tirelessly to maintain peace and order in the Bitterroot Valley.
However, his aging police vehicles were starting to show the wear-and-tear resulting from daily patrols and police work, and Rose knew it was time to invest in new assets.
So, he applied for both a USDA Rural Development Community Facilities Direct Loan and Direct Grant, seeking funding for two new SUVs complete with lights, sirens, cameras, security cages, snow tires and the equipment needed to patrol Darby and its surrounding areas. They are also used when County, State and Federal law enforcement agencies request Mutual Aid. The older vehicles, which were purchased through USDA RD Community Facilities funding, had a 10-year lifespan, and Rose is hoping for similar results this time.
The vehicle replacement came at an opportune time, as Rose estimates that Darby now sees at least 12,000 cars daily on Federal Highway 93, which is the town's main thoroughfare. With the marked increase in traffic, Rose stated that the community really encourages them to stop cars for speeding through the town.
"There's a lot of complaints because cars are going so fast through here," Rose said. "We write a lot of citations," which was evidenced by the shelves behind him littered with ticket books. "We've got 15,231 entries since 1985," he noted.
Rose received both a USDA Rural Development Community Facilities Direct Loan and Community Facilities Direct Grant, and was able to use the funding to order the two Dodge Durango SUVs, as well as the specific equipment he wanted for outfitting them. "Equipping a vehicle is a lot more complex than you would think," Rose said, indicating that the USDA application process was easier than figuring out the logistics for outfitting them. "I'll drop-ship them to the equipment installers next time," he concluded. Great advice from this pro, who has been chasing down lawbreakers in the Bitterroot for nearly 37 years.
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Availability of Up To $500 Million in Emergency Rural Health Care Funds Under the American Rescue Plan
Funding Will Expand Access to COVID-19 Vaccines, Health Care Services and Food Assistance in Rural America
The United States Department of Agriculture (USDA) is making up to $500 million available in grants to help rural health care facilities, tribes, and communities expand access to COVID-19 vaccines, health care services and nutrition assistance. These funds may be used to increase COVID-19 vaccine distribution and telehealth capabilities; purchase medical supplies; replace revenue lost during the pandemic; build and rehabilitate temporary or permanent structures for health care services; support staffing needs for vaccine administration and testing; and support facility and operations expenses associated with food banks and food distribution facilities. Click here for the GRANT INFO.
Eviction Moratorium for Homeowners Extended
USDA Extends Eviction Moratorium for Homeowners to September 30, 2021
Click here for ADDITIONAL INFO
The U.S. Economic Development Administration (EDA) and Department of Commerce American Rescue Plan program has allocated $100M of Economic Adjustment Assistance funds for Indigenous Communities. EDA will work with Tribal Governments and Indigenous Communities to execute economic development projects and jumpstart recovery from the COVID19 pandemic. Click here for the GRANT INFO.
USDA BioBased Report
USDA RD published the Biobased Products Industry Report and findings show that the biobased industry is responsible for 4.6 million American jobs and has had a significant, positive impact on the environment! Click here for the FULL REPORT.
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