Small businesses in Richland County and around the state, it seems, are faring better than expected despite an economic downturn, Richland Economic Development members learned Thursday evening during the annual meeting.

Members at the banquet listened to Michelle Johnston, Montana district director of the U.S. Small Business Administration in Helena, who spoke on the administration’s duties, its partnerships and its progress.

“This year, entrepreneurs in 81 cities and towns throughout the state received a shot in the arm by SBA, fostering job creation and bolstering economies,” she told the audience of roughly 60. “The Montana Small Business Administration plays an important role in enabling our entrepreneurs and small business owners.”

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During the 2009 fiscal year, the administration guaranteed 479 loans for more than $78 million for small businesses in 36 counties including Richland. In addition to loan guarantees, Johnston said the SBA provides assistance for small businesses in federal contracting and business counseling as well as provides financial management, technical assistance and training to establish businesses throughout the state.

“SBA is using all the tools in our toolbox to help small businesses lead our nation’s economic recovery,” she said. “Small businesses are getting the dollars they need not only to keep their doors open and employees working but also grow and create jobs.”

Small businesses in Montana account for more than 97 percent of the business make up. There are 31,000 small employers and 84,000 non-employers, which contribute to the economy.

The administration established the America’s Recovery Capital Loan Program June 15, a temporary program that provides loans up to $35,000 to viable but struggling small businesses, making up to six months worth of debt payments on qualifying loans.

“This is no interest deferred repayment loan provides a bridge for many small businesses through these tough economic times,” Johnston said. In addition, a new program was also introduced. The Dealer Floor Plan loan program finances inventory on auto, recreational vehicles, boats and other dealerships.

In comparing October 2008 and 2009, the administration has increased its loan disbursement by 40 (21 in 2008 compared to 61 last month).

Johnston recognized Richland Economic Development for its effort in reaching out to small businesses in the area and establishing resources to help new businesses grow.

“Richland County businesses are fortunate to have the multitude of free business assistance resources to assist with their business resources adventures,” Johnston said. Sidney was also recognized earlier this year as the Montana Small Business Community of the Year during the annual SBA convention in June. Johnston said the award recognizes ingenuity, determination, success and contribution to building a prosperous future for the state. “It was a pleasure to honor Sidney with this award,” she said.

RED progress

Richland Economic Development director Leslie Messer gave a review of RED’s progress in 2009, which she likened to planting seeds in hopes of being able to eventually reap a bountiful harvest. The progress includes the following:

• RED receives three to four visits from potential business owners who come for a small business start-up guide, developed by RED.

• A new business is under way, Messer said. RED has been working with officials from Hydrotech Inc. who take used oil, filter it and use it for compost that’s environmentally safe. The company has an office in Sidney and currently works in Montana and North Dakota.

• Working with the city of Sidney and Richland County commissioners on the downtown renewal. “If all goes according to the plan and Interstate Engineering, we should be able to break ground this spring,” she said.

• The re-opening of Centre Theatre after several parties brainstormed with Messer and RED about opening it again.

• Working with Russ Wells to make the best use of the Yellowstone Mercantile.

• Working to bring professional development and work force training to the area, which included two workshops with Steve Beck, founder and president of Beck and Associates, who discussed “Exceptional Customer Service III” and “Life-Work Balance.” Each session had more than 60 participants.

• Working with MSU-Billings College of Technology to bring mobile training units to Sidney to train students in welding, heavy equipment operators, leadership skills and hazmat emergency response.

• Messer said she was pleased to nominate Sidney as the Small Business Community of the Year; the award should tell the rest of the state the area is sticking together through tough economic times.

“Economic development is a slow process,” she said. “However, with your continued contributions to Richland Economic Development, we will all be able to harvest the crops of the seeds planted from long ago.”

New directors elected

Richland Economic Development members elected four members to the board of directors – Scott Johnson, Randy Olson, Pam Burman and Russ Fullmer.

reporter@sidneyherald.com