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Small Business Grants in Montana — Exploring Non-Dilutive Funding Opportunities

  • Writer: Virgil Sammartin
    Virgil Sammartin
  • Apr 1
  • 3 min read

Non-Dilutive Funding for R&D in Montana – Grants & Resources

Securing funding for research and development (R&D) is a critical challenge for many Montana-based startups and small businesses, especially those in tech, biotech, and agritech sectors. While traditional financing options like venture capital and loans often require giving up equity or incurring debt, non-dilutive funding provides an alternative pathway. These funding sources—grants, loans, and tax credits—offer capital without sacrificing ownership, enabling businesses to innovate and grow sustainably.​


Montana's Economic Landscape

A significant number of small enterprises characterize Montana's business environment. According to recent data, the state is home to approximately 31,670 businesses, with 20,187 having between zero and four employees. These stats underscore the importance of accessible funding mechanisms tailored to support small-scale operations and foster innovation across the state.​


Top Small Business Grants in Montana for R&D & Innovation

Montana offers several state-specific programs designed to support R&D and innovation:​

  • Montana State Small Business Credit Initiative (SSBCI 2.0): This program provides up to $1 million in funding for Montana businesses seeking to stabilize, expand, or restart. It partners with approved economic development organizations to identify eligible businesses. ​Montana Department of Commerce

  • Big Sky Economic Development Trust Fund (BSTF): BSTF offers grants to local and tribal governments to assist businesses in creating good-paying jobs related to R&D. Eligible businesses must create at least one net new eligible job in Montana. ​Missoula Economic Partnership+3Bridger District+3funding.mt.gov+3

  • Rural Business Development Grants (RBDG): Funded by the USDA, RBDG provides grants to support the development of small and emerging businesses in rural areas, including tech and agribusinesses. Grants can reach up to $500,000, depending on the project scope and funding availability.​

  • Indian Equity Fund: This program offers grants to Native American entrepreneurs aiming to start or expand businesses, including those focused on R&D. The fund provides a total of $320,000 annually, with individual awards varying based on the project's needs and potential impact.​


Federal Grants Available to Montana Small Businesses

In addition to state-specific programs, Montana businesses can tap into federal grants:​

  • SBIR/STTR Programs: Known as "America's Seed Fund," these programs offer:​

    • Phase I: Up to $250,000 for feasibility studies over six months.​

    • Phase II: Up to $1 million for prototype development over two years.​

  • NIH/NSF Grants: The National Institutes of Health (NIH) and the National Science Foundation (NSF) provide funding for biomedical, energy, and environmental R&D projects.​

  • USDA Value-Added Producer Grants: These grants support agricultural producers in developing new products, diversifying income, and expanding market opportunities.​Funds for NGOs

Local & Industry-Specific Opportunities

Montana also offers local and industry-specific funding opportunities:​

  • Montana Innovation Partnership: This initiative provides technical assistance, mentorship, and matching funds to tech startups applying for SBIR/STTR grants, enhancing their competitiveness.​

  • MoFi Revolving Loan Funds: MoFi offers low-interest loans to small businesses with R&D components, focusing on those that may not qualify for traditional financing.​

  • Tribal Business Grants: Various programs provide funding to Native-owned businesses engaged in sustainable tech and agricultural R&D, supporting economic development within tribal communities.​

Strengthening Your Application

To enhance the success of your funding applications:​

  • Align with State Priorities: Emphasize how your project contributes to job creation and rural development or supports tribal communities, aligning with Montana's economic goals.​

  • Leverage University Partnerships: Collaborate with Montana universities, especially for STTR grants that require partnerships with research institutions, to strengthen your proposal.​

  • Utilize Montana SBDC Resources: The Montana Small Business Development Center offers free counseling and assistance in preparing grant applications, providing valuable support throughout the process.​

Deadlines & Quick Tips

Staying informed about application deadlines is crucial:​

  • SBIR/STTR: Upcoming deadlines include April 5 (NIH) and June 5 (NSF).​

  • RBDG: These grants have rolling deadlines, with the next application due by June 30, 2025.​


Pro Tip: Register on SAM.gov early, as it is mandatory for federal grant applications, and the registration process can take several weeks.​


Conclusion

Exploring non-dilutive funding option offers a much needed advantage for Montana-based startups and small businesses aiming to expand their R&D initiatives without giving up equity. Programs like SSBCI 2.0, BSTF, and federal grants such as SBIR/STTR provide valuable resources to support innovation and growth.


Interested in learning more about non-dilutive funding opportunities in Montana and Beyond?





 
 
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