What is the Montana Rural Assistance Loan Program?

The Montana Department of Agriculture runs this program specifically for agricultural producers who can't get a loan through a conventional bank or lender. If your net worth is under $450,000 and a commercial lender has passed on your application, this program is designed for you. Loans go up to $75,000 and are made at up to 80% of collateral value.

Applications are reviewed at the local level by a two-member committee before the Montana Department of Agriculture makes the final call. That local review is a meaningful feature since people familiar with your area and your kind of operation are part of the process.

What Can You Use the Funds For?

The program explicitly lists eligible uses:

• Livestock

• Farm machinery including cattle handling equipment

• Agricultural improvements such as barns or irrigation systems

• Annual operating expenses

• Agricultural land

Does Arrowquip Equipment Qualify?

Yes. The program lists "farm machinery" as an eligible category. Arrowquip squeeze chutes, hydraulic chutes, alleys, tubs, livestock scales, and cattle processing equipment all fall under farm machinery as defined by this program. If you're setting up or upgrading a handling system, this loan can help cover that cost alongside other startup or operating needs.

Who Is Eligible?

• Montana resident, 18 years of age or older

• Unable to qualify for financing from commercial lenders

• Net worth (including spouse and minor children) does not exceed $450,000

• The proposed activity must demonstrate positive cash flow and net worth

Key Facts

• Program: Rural Assistance Loan Program

• Agency: Montana Department of Agriculture

• Maximum loan amount: Up to $75,000 per individual

• Loan-to-value: Up to 80% of collateral value

• Net worth limit: $450,000 (including spouse and minor children)

• Deadline: Not specified. Contact the Montana Department of Agriculture for current availability

How to Apply

The Montana Department of Agriculture Rural Assistance Loans webpage contains provides three documents you'll want to review and complete.

FAQ

Can I use this loan to buy a squeeze chute or cattle handling system?

Yes. The program lists "farm machinery" as an eligible use of funds. Arrowquip squeeze chutes, hydraulic chutes, alleys, tubs, scales, and processing equipment qualify under that category. You'd include the equipment in your application as part of your proposed activity.

How much can I borrow from the Montana Rural Assistance Loan Program?

Up to $75,000 per individual. Loans are made at up to 80% of the collateral value, so the amount you actually receive depends on what you're putting up as collateral.

What if my net worth is just under $450,000? Do I still qualify?

Net worth eligibility is set at under $450,000, and that figure includes your spouse and minor children. If you're under that threshold and can't get conventional financing, you meet the basic financial eligibility requirements. Your proposed activity also needs to show positive cash flow and net worth.

Who reviews my application, and how long does it take?

Applications go through a local two-member committee first, then receive final approval from the Montana Department of Agriculture. The program documentation doesn't specify exact turnaround times, so it's worth contacting the Montana Department of Agriculture directly after submitting for status updates.

Is there a deadline to apply?

No specific deadline has been published for this program. It appears to operate on a rolling basis. Check the Montana Department of Agriculture Grants Portal or the program application documents for the most current information.

Can I use this loan to buy land and equipment at the same time?

The program lists both agricultural land and farm machinery as eligible uses, so in principle you could structure a loan application that covers both. Your application will need to show that the overall proposed activity demonstrates positive cash flow and net worth.

Need Help Planning Your Next Ranch Upgrade?

If you’re applying for the Montana Rural Assistance Loan Program and looking at cattle handling equipment, livestock flow improvements, or ranch infrastructure upgrades, Arrowquip can help you plan the right next step for your operation.