Community Development Block Grant awarded to aid Hi Country purchase

The Montana Department of Commerce announced last week the approval of a $400,000 Community Development Block Grant for Economic Development that will be used as part of a funding package for the purchase of Hi Country Snack Foods by Travis and Molly Byerly of Bozeman.

The grant to Lewis and Clark County for the Hi Country transaction is part of a $1.2 million funding package awarded to three projects around the state, including a grant for to the city of Hardin for medical equipment for Big Horn County Memorial Hospital and a grant to Stillwater County for a loan to Montana Silversmiths for equipment.

"Projects such as these strengthen Montana's economy and local businesses' ability to create and retain permanent, good-paying jobs," Department of Commerce Director Tara Rice said in the press release announcing the grant awards.

The Montana Business Assistance Connection has been working with the Byelrys on the purchase of the business and began the application process for the block grant nearly a year ago. MBAC's Community Development Program Grant Manager Eric Seidensticker began seeking public comments on the application at the April 6, 2018 Lincoln Government Day Meeting. At the time, Seidensticker described MBAC's pursuit of the grant as a "no-brainer," based on Hi Country's history and it's impact on Lincoln's economy through job creation. Hi Country currently employees between 40 and 50 people and is the communities largest private employer.

Although the grant money is destined for use as working capital for the purchase of Hi Country, it was awarded to Lewis and Clark County, which will add it to the county's Revolving Loan Fund. From there it will be provided to the Byerly's in the form of a loan. As the money is paid back it is returned to the revolving loan fund where it can be loaned out again for other projects in the county.

Seidensticker credited Lewis and Clark County Commission and the county staff for their support for the grant application and for Lincoln.

"They understand the significance of having Hi-Country in Lincoln, the jobs that the business produces, the importance of retaining those jobs, and the overall impact to Lincoln's economy," he told the BVD in an e-mail Monday.

Seidensticker gathered public comments on the CDBG-ED application in 2018, first during the April 6 meeting and again at a second public hearing on April 24, 2018. At those meetings there were some concerns raised that new owners might move the business out of Lincoln. Seidensticker explained at the time that the goal of MBAC in seeking the grant is to keep the business here, and he confirmed this week that the Byerlys are committed to keeping Hi Country in Lincoln and growing the business here over the next few years.

At present, the transition in ownership is still in the works, but Hi Country General Manager Steve Fehrs told the BVD it is continuing to move forward, but said there are still some details that need to be worked through.

According to the Montana Department of Commerce, the CDBG-ED program is designed to stimulate economic development activity by helping the private sector create or retain jobs in high-needs communities through fixed-rate financing with low interest rates.