U.S. Sen. Max Baucus, D-Mont., recently introduced a bill to help rural businesses get access to the credit they need to keep their doors open and employees on the job.

“This is the right thing to do for our rural communities and our rural businesses in Montana,” Baucus said. “These are small, low cost changes that will make a big difference for rural businesses that are struggling during these tough economic times. The bill will help keep Montanans working and go a long way toward creating more good paying jobs in our state.”

Baucus, chairman of the powerful Senate Finance Committee, introduced the Rural Access to Credit Act of 2010, which will make the U.S. Department of Agriculture’s Business and Industry Guaranteed Loan Program (B&I) more similar to the Small Businesses Administration’s 7(a) loan guarantee programs. The Small Business Administration has been a bright spot for small business lending during the economic downturn. A provision of the American Reinvestment and Recovery Act, included improvements to SBA’s loan program enabled the organization to approve $14 billion in loans and supported $18 billion in lending to small businesses. Since October 2009, 173 SBA loans were approved in Montana for a total of $28 million. This represents a 131 percent increase in loan volume compared to the previous year.

“These changes are great for Montana, great for small businesses and long overdue,” said Mick Ringsak, the former SBA administrator for Region 8, which includes Montana. “By expanding them to USDA loan programs too, we can help even more small businesses get the loans they need and deserve.”

Brett Doney, president of the Great Falls Development Authority, says the measure will make a difference for businesses in his community.

Rosalie Cates, the president of Montana community development corporation agrees.

“The USDA Rural Development loan programs are important in making small business financing flow from rural banks,” Cates said.

Baucus’ bill will modernize the B&I loan regulations and improve the access to credit in rural areas. The bill will:

• Make USDA B&I loan requirements more similar to commercial lending standards

• Raise the loan guarantee level to 90 percent for loans up to $10 million

• Guarantee lines of credit

• Allow loans to be used for refinancing

• Waive audit requirements for loans of less than $1 million

• Encourage Congress to kick the micro-entrepreneur assistance program into gear

• Align USDA’s calculation of loan delinquency rates with the SBA’s rates.