Montana Department Of Commerce
MONTANA DEPARTMENT OF COMMERCE2023 Biennium Goals and Objectives301 S Park AveHelena, MT 59601406.841.2700
Department of Commerce:The Department of Commerce partners with communities, businesses, and organizations across the stateto strengthen Montana’s economy. The Department supports the development of affordable and vibrantcommunities, promotes Montana’s spectacular unspoiled nature and charming towns, and supports theinnovative and sustainable industries which strengthen Montana’s economy.The Department is composed of four major operational divisions, and four administratively attached entitiesas follows:Major Operational Divisions:Office of Tourism and Business Development Division Budget & Operations Bureau Marketing Bureau Industry Services and Outreach Bureau Business Assistance Bureau Research & Information Services BureauCommunity Development Division Community Development Block Grant Program (CDBG) Community Technical Assistance Program (CTAP) HOME Investment Partnership Program (HOME) Montana Main Street Program Montana Historic Preservation Grant Program (MHPG) Housing Trust Fund (HTF) Treasure State Endowment Program (TSEP) Coal Board Hard Rock Mining Impact BoardHousing Division Board of Housing Housing Assistance BureauDirector’s Office Offices of Accounting and Budget; Legal Affairs, Human Resources, Information Technology, andCommunications Montana Council on Developmental DisabilitiesAdministratively Attached Entities:Montana Facility Finance AuthorityBoard of InvestmentsBoard of Horse RacingMontana Heritage CommissionThe Department is mandated in 2-15-18, MCA.
Mission:The Department of Commerce through its employees, community partners, public outreach, and mediacontacts enhances economic prosperity in Montana; fosters community lead diversification andsustainability of a growing economy; maintains and improves our infrastructure, housing and facilities; andpromotes and enhances Montana’s positive national and international image.“The Department of Commerce will enhance and sustain a healthy economy, so Montana businesses,communities, and people can prosper.”Goals and Objectives: Work to improve the state's economy through business creation, expansion, retention, anddiversification of the state's economic base.Provide direct technical assistance and training for Montana’s entrepreneurs, businesses, and theiremployees in partnership with communities, counties, and local and regional development groups.Enhance the growth of the Montana economy through the promotion of tourism development,promoting and protecting historic sites, and the marketing of Montana as a travel and filmmakingdestination.Promote access to new markets, both foreign and domestic, for Montana goods and services.Provide financing for homeownership and rental assistance opportunities for Montana families.Develop and improve public infrastructure and housing opportunities for the state's citizens byproviding grants and technical assistance to Montana communities and counties.Prudently manage the investments of state and local government funds.Provide fair and equal treatment of our fellow employees and our customers.Website: http://commerce.mt.gov/Office of Tourism and Business Development Division:Please note that these goals and objectives were designed and projected based upon a pre-COVID19outbreak world. As a result of the dramatic and ever changing COVID19 impact on the economy, it isimpossible at this juncture to determine what new baseline activity can or should be.The Montana Office of Tourism and Business Development (MOTBD) markets Montana’s spectacularunspoiled nature, vibrant and charming small towns, breathtaking experiences, relaxing hospitality, andcompetitive business climate to promote the state as a place to visit and do business. Its goal is to sustainand enhance the quality of life for all Montanans and their communities by strengthening the economythrough job creation and business development. In conjunction with other divisions of the MontanaDepartment of Commerce and partners around the state. MOTBD’s programs aim to support businessesthrough technical assistance, research, and access to grants and loans while inspiring visitation tomaximize the economic impact of tourism, encourage private sector investment and ensure that Montanais a great place to live, work and play today and for future generations.The Office of Tourism and Business Development Division responsibilities are mandated primarily in Title2, Chapter 15, Title 15, Chapter 31, Part 10, Title 15, Chapter 35, Section 108; Title 15, Chapter 65, Sections121-122, Title 17, Chapter 6, Part 4; Title 39, Chapter 11; Title 90, Chapter 1, MCA.Funded projects can be reviewed at http://commerce.mt.gov/About/FundedProjects
Mission:The mission of the Office of Tourism and Business Development Division is to provide the tools to creategood jobs, build strong communities, and grow Montana’s economy.The division is comprised of five bureaus funded by House Bill 2 and statutory appropriations: Budget and Operations Bureau Marketing Bureau Industry Services and Outreach Bureau Business Assistance Bureau Research & Information Services BureauThe Montana Office of Tourism and Business Development funds its travel and tourism marketing programsthrough a statewide selective sales tax assessed on the rate charged for lodging at Montana’s hotels,motels, B&Bs, guest ranches, campgrounds, and other lodging facilities. This tax, currently at 8%, breaksdown into two categories: 4% Lodging Facility Sales Tax which a majority of which goes into the State’sGeneral Fund and a 4% tax, the Montana Lodging Facility Use Tax, or “bed tax”, which finances severaltourism-related programs, including the Montana Office of Tourism.Currently, 63% of the 4% bed tax collected is used for the Montana Department of Commerce’s MontanaOffice of Tourism and Business Development and Montana Film Office programs. Tribal tourism promotionis supported with 0.5% of the bed tax.Budget and Operations BureauThe Budget and Operations Bureau manages the division's House Bill 2 and various statutorily appropriatedbudgets, oversees customer relationship management, fulfills orders of division publications, and providesinternal administrative support.Operations supports the mission by providing front desk services to all programs, direct customer service,financial oversight, and fulfillment of the inquiries received via marketing efforts with publications, emailsand customer interaction via a contact center. The front desk also processes direct requests for commercialpublication orders. Our fulfillment process utilizes a contact center and provides mailroom services todistribute our publications expeditiously.Goals and Objectives: To provide the highest degree of support to agency services.To respond to visitor inquiries through superior contact center management.Marketing Bureau: Promoting Tourism and Film Production for MontanaThe Marketing Bureau is responsible for promoting visitation and film production to the state of Montana.The bureau inspires out-of-state residents to visit Montana through domestic and international campaignsthat increase awareness of Montana as a world-class tourism destination. This is achieved throughinnovative research that informs domestic and international advertising, public relations, digital web-basedmarketing, social media, publications and partnership strategies.Tourism in Montana is made up of and supports an industry of small businesses from a variety of sectors,including lodging accommodations, restaurants and bars, outfitters and guides, ski areas and privateattractions, museums and cultural facilities, farmers and ranchers, gas stations and convenience storeowners, and retail shops. The industry counts various state and federal agencies as critical partners andworks in close collaboration with Indian Country Economic Development partners to promote tribal tourism.
To help increase accessibility and grow air service in the state, the bureau works closely with airports andair service committees throughout the state as additional partners.In addition to tourism promotion, the Montana Film Office is also housed within the marketing bureau. Thefilm office utilizes advertising, social media, public relations, events and festivals, grants and technicalassistance strategies to attract productions (feature films, commercials, documentaries, televisionprograms and still shoots) into the state for economic development. A successful production leads toancillary promotion of Montana as a tourism destination for the populations across the globe that view ourstate’s landscapes, towns and character in the finished pieces.A single production can infuse a small community with hundreds of thousands to millions of dollars in ashort amount of time through the hiring of crew, talent, and trades, who then fill hotel rooms for the durationof production.(Note: The COVID-19 virus will alter spending in FY 2020 and FY 2021 for both tourism and film industries,possibly affecting marketing ROI, commercial production and tax incentive applications.)Goals and Objectives:Tourism Create increased demand for Montana as a premiere global travel destination through engagingand provocative communications that inspire, delight, and guide our audience.Increase internal and external collaboration to drive awareness of Montana as a travel destinationand convert travel interest to action, focusing on the optimal audience that will increase revenuefor the state while ensuring the health and vitality of our natural and cultural treasures into thefuture.Assist with and track the recovery of visitation post COVID-19 to Montana to bring the industry backto previous levels.Film Promote the state as a location for feature films, commercials, documentaries, television programsand other multimedia projects by providing information, grants, and support services to the motionpicture industry.Grow the media manufacturing sector, including in-state company expansion, new companiesand/or company relocation to Montana, and in increase in production-related jobs, and job trainingprogram availability.Position the MEDIA Act as an effective, useful tool offered by the State of Montana to producerswho seek to utilize income tax credit programs in their productions.Continue support of Montana film festivals and appearances at major film festivals, reinforcing oursupport of filmmakers and Montana as a place to create high quality independent films.Marketing Bureau Performance Indicators:MARKETING PERFORMANCEMaintain consistent Return onInvestment ROI (ROI) per 1 spent YOYfor each fiscal year. (Due to thenecessity of changing the marketingfocus from revenue generation from outof state visitors to travel safetymessaging in FY 21 and FY 22 the ROIActual FY2019ProjectedFY 2020ProjectedFY 2021ProjectedFY 2022ProjectedFY 2023 63 63 20 40 63
MARKETING PERFORMANCEActual FY2019ProjectedFY 2020ProjectedFY 2021ProjectedFY 2022ProjectedFY 2023MT FILM OFFICE PERFORMANCEActual FY2019ProjectedFY 2020ProjectedFY 2021ProjectedFY 2022Projected FY2023Maintain interest in Big Sky Film Grant,incrementally provide grant awards incategory divisions as funding becomesavailable.Assist current grantees with publicity.21%( 3,629,825requested: 750,000awarded)14 projects10%( 4,906,900requested 500,000awarded)15 ProjectsProgramPaused due toCOVID19( 5,313,224.06requested by42 projects)TBD FundingGoal 23%Goal 23%TBD Funding TBD Funding ofof 500,000 500,000Maintain level of name-brand, lifestyledriven commercial ad productions24commercials@ 25,000200,000/productions15commercials@ ercials@ 25,000200,000/production15applicationsGoal: 10 milcredits issued40-6050-70commercials commercials @@ 25,000 icationsapplicationsGoal: 10 mil Goal: 10 milcredits issued credits issuedis expected to decrease with a return to“normal” marketing in FY 23.)Promote the MEDIA Act tax incentiveprogram to the industryIndustry Services and Outreach BureauThe bureau coordinates and aligns industry opportunities to grow the Montana economy by improving thevisitor experience, visitor spending, and increasing industry capacity through destination development,workshops, trainings, public relations, programs, and grants.Goals and Objectives: Connect tourism industry stakeholders to marketing campaign initiatives and objectives tocoordinate marketing efforts across the state of MontanaManage the Department of Commerce’s lodging facility use tax finance and accounting controlsincluding 22.5% that contributes to the region and CVB marketing plansFacilitate Tourism Advisory Council (TAC) meetings for approval of region and CVB marketingplans and other TAC responsibilities pursuant to statuteIncrease value added production supporting the Made in Montana program and development ofthe agritourism industry across MontanaConvene tourism industry stakeholders at the Governor’s Conference on Tourism and RecreationIncentivize investment into tourism infrastructure and marketing across Montana through thetourism grant and destination development programs based on available fundingProvide training and education opportunities to rural and underserved regions in Montana toenhance the visitor experience and grow the tourism economyThe following programs support the bureau’s mission: Destination DevelopmentOutreach and Signature Events
Tourism Partner ServicesMade in Montana and AgritourismTourism GrantsDestination DevelopmentThe Destination Development program awards funds to identified collaborative projects that strengthenMontana’s economy, and enhance and develop sustainable tourism initiatives through infrastructureand niche product promotion across Montana.Outreach and Signature EventsThe outreach program organizes workshops and other training opportunities for tourism and economicdevelopment constituents to learn more about the Montana Brand, business and marketing practices,and available resources. Two signature events are offered: The Governor’s Conference on Tourismand Recreation is the premiere annual event where the state’s tourism and recreation industry gathersfor education, networking, and strategic planning; and the Made in Montana Trade Show offersmembers of the Made in Montana program the opportunity to exhibit their products to wholesale buyersand the public.Tourism Partner ServicesIndustry Services and Outreach supports Montana’s nonprofit tourism Regions and Convention VisitorBureaus (CVB) by overseeing the distribution of lodging facility use tax revenue, participating in themarketing plan development process, and ensuring compliance with lodging facility use tax regulations.Made in Montana and AgritourismMade in Montana (MIM) is a multi-faceted marketing program that provides a unique branding effort forMontana made or grown value added products. MIM offers an online directory of program members tofacilitate searching and selecting products directly from members. The annual tradeshow is a businessdevelopment opportunity for members to offer products to wholesale buyers and members of the public.Collaboration with Department of Agriculture encourages development of Grown in Montana productsand producers and the joint Taste our Place agritourism branding strategy connects producers andestablishments to encourage “farm to table” experiences.Tourism GrantsThe Tourism Grant Program awards funds to projects that strengthen Montana’s economy through thedevelopment and enhancement of the State’s tourism and recreation industry. Funds are awardedannually to projects that develop and enhance tourism and recreation products that have the potentialto increase non-resident visitation. Entities in Montana that are eligible to apply for a Tourism Grantinclude a primary, registered non-profit 501(c) organization; a Tribal government; or a City or Countygovernment. The annual application cycle runs July 1-September 30 of each fiscal except for 2020where the application was delayed due to the pandemic. Should additional funding be available, aspecial application cycle for events only runs in the spring months. The Tourism Event Grant Programwas created to elevate local events to become destination events through additional marketing andupgrading the visitor experience. This attracts additional non-resident or out-of-area visitors to theevent or extends their stay, enhancing attendance and increasing visitor generated revenues. Awards,and funding amount awarded, is based on the number of total applications received in each cycle aswell as by a review and evaluation process. A high-level of award concentration is provided to ruralcommunities, under-served regions of Montana, and to tribal communities.Industry Services and Outreach Bureau Performance Indicators:PERFORMANCEMade in MontanaActualFY 2019Projected FY2020Projected FY2021ProjectedFY 2022Projected FY2023
Sustain as manymembers aspossibleanticipatingsignificant loss ofMade in Montanaretail businessesin 2020.Beginning in2021, increasethe total numberof active Made inMontanamembers by 5%annuallyIncrease the totalnumber of Grownin Montanamembers by 8%annuallyIncrease the totalnumber of NativeAmerican Madein Montanamembers by 5%annuallyTotal 733848515457602,6822,6242,7632,9103,072Tourism Grant ProgramExpand theawareness andaccessibility ofthe AnnualTourism Grant toruralcommunities,under-servedregions ofMontana, andtribalcommunities byincreasing thenumber ofapplications fromthesegeographies by5% each year.3634363840Continue toexpand theTourism Grantprogram bygreatergeographic3425283135
distribution andapplicant diversitymeasured byincreasing thenumber of AnnualTourism Grantrecipients by 10%annuallyExpand theTourism EventGrant program (iffunds areavailable) andgeographic reachby increasing thenumber ofTourism EventGrant recipientsby 5% annually640646872Business Assistance BureauThe Business Assistance Bureau connects emerging entrepreneurs, economic development organizations,local governments and existing businesses with responsive technical and finance assistance through acomprehensive portfolio of success-driven trainings, one-on-one counseling, loan and grant programs togrow the economy and create and retain jobs. It assists in identifying new market and businessopportunities within the state and beyond our borders. Additionally, the bureau assists economicdevelopment projects through grants, planning support and coordinating available funding opportunities.Goals and Objectives: Assist with the creation and/or retention of good-paying jobs for Montana residentsPromote long-term, stable economic growth in MontanaRetain or expand existing businessesEncourage a regional approach to economic development facilitating the efficient delivery ofeconomic development programs by supporting regional capacity buildingAssist Montana businesses in obtaining financingGrow capacity and the local economy in tribal and reservation-based communitiesAssist Montana companies in entering new domestic and international marketsStrengthen and maintain diplomatic relationships with leaders in key countriesThe following programs support the bureau’s mission: Montana Finance Information CenterCertified Regional Development Corporations (CRDC)Micro Business Finance Program (MBFP)Montana Distressed Wood Products Revolving Loan Fund ProgramsPrimary Sector Workforce Training Grant Program (WTG)Big Sky Economic Development Trust Fund Program (BSTF)Montana SBIR/STTR Matching Funds ProgramSmall Business Development Center (SBDC)Montana Innovation Partnership (MTIP)Indian Country Economic Development Program (ICED)State Tribal Economic Development Commission (STED)
Montana Indian Language Program (MILP)Export MontanaDiplomacy and International RelationsCertified Regional Development Corporations (CRDC)This program provides statutory funding for up to 12 regional economic development organizationscalled Certified Regional Development Corporations (CRDCs) on a matching grant basis of 1 statedollar for every local 1. CRDCs encourage a regional approach to economic development, provideresources for local development, offer technical assistance and counseling, and manage regionalrevolving loan funds. The bureau works with all counties in the state including those not included in aCRDC region.Website: http://marketmt.com/CRDCMontana Micro Business Finance Program (MBDC)Montana's Micro Business Development Corporations (MBDCs) provide financing and technicalassistance to help businesses get started or expand. The Montana Department of Commerce loansmoney to the MBDCs who in turn loan the money at a slightly higher interest rate. The MBDCs makeloans up to 100,000 for working capital, equipment, or other fixed assets for qualified microbusinesses. A qualified micro-business must be a Montana-based business that has ten or fewer thanten full-time equivalent employees and less than 1,000,000 in gross annual revenues. To qualify for aloan the businesses need to meet local lending criteria. Since the intent of the program is to financebusiness projects that would not otherwise be able to obtain financing from sources such as their localbanks, the interest rates charged on the loans are slightly higher than bank rates.Website: http://marketmt.org/MBFPMontana Distressed Wood Products Revolving Loan Fund ProgramsThe Montana Distressed Wood Products Revolving Loan Fund (MT WP RLF) established in 2009, iscomprised of three different funding sources that were used to implement the distressed wood productsloan program with the intent to keep a viable timber and wood products industry in Montana. Loans aremade to wood and timber related businesses that have suffered a hardship that need to retain or createjobs. The fund was originally comprised of 7.5 million in state funds, 2.7 million from the MontanaDepartment of Commerce by the Economic Development Administration, and 1.5 million from the USDepartment of Housing and Urban Development.Website: http://marketmt.com/WPRLFPrimary Sector Workforce Training Grant Program (WTG)In 2005, the Montana Legislature passed the Primary Sector Business Workforce Training Grant Act toencourage the creation and retention of good-paying jobs in primary sector businesses. The programprovides an incentive for out-of-state companies to locate to Montana and for Montana companies toexpand their operations. The program provides training for Montana citizens enabling them to increasetheir skills and standard of living. Companies with 50% or more of their sales from outside Montana areeligible to apply for the program and they must pay each eligible worker a wage that meets or exceedsthe lesser of 170% of Montana’s current minimum wage or the current average weekly wage of thecounty in which the business is located (wages can include provided benefits).Website: http://marketmt.com/WTGBig Sky Economic Development Trust Fund (BSTF)The legislative purpose of the Big Sky Economic Development Fund is to: Create good-paying jobs for Montana residents, Promote long-term, stable economic growth in Montana,
Encourage local economic development organizations,Create partnerships between the state, local governments, tribal governments, and localeconomic development organizations that are interested in pursuing these same economicdevelopment goals,Retain or expand existing businesses,Provide a better life for future generations through greater economic growth and prosperity inMontana, andEncourage workforce development, including workforce training and job creation, in HighPoverty Counties by providing targeted assistance.The Big Sky Economic Development Fund is a sub-trust fund within the Coal Severance Tax TrustFund. Investment earnings (interest only; not principal) from the Big Sky Economic Development Fundare statutorily appropriated to the Montana Department of Commerce to provide financial assistance tolocal and tribal governments and economic development organizations to support job creation andeconomic development planning.Website: http://marketmt.com/BSTFMontana SBIR/STTR Matching Funds Program (MSMFP)The SBIR/STTR Matching Funds Program assists technology-based Montana companies by providingadditional funding that can be used for technology development or other uses during the time that thecompany is working on a Small Business Innovation Research or Small Business Technology Transfer(SBIR/STTR) project with a federal agency. This additional funding increases the likelihood thattechnology-based Montana companies will be able to develop products and services that can besuccessfully marketed.Website: http://marketmt.com/MSMFPSmall Business Development Center (SBDC)The Montana Small Business Development Center (SBDC) is Montana’s premier provider forentrepreneurial and small business assistance. The program is funded through a partnership with theSmall Business Administration (SBA), Montana Department of Commerce, economic developmentorganizations and higher education institutions. Montana SBDC’s Business Consultants assist businessowners and aspiring entrepreneurs with low-cost training opportunities and no cost, one-on-oneadvising that is customized to meet their needs. The SBDC network supports ten centers across thestate, focusing on counseling and training in areas such as financial analysis, business planning,strategic planning, loan packaging, financial projections, business management and market researchto help small businesses achieve their goals of growth, innovation and success.Website: http://sbdc.mt.govMontana Technology Innovation Partnership (MTIP)The Montana Innovation Partnership (MTIP) is powered by MSU TechLink, and is a strategic partnerfor Montana innovators, entrepreneurs and inventors to help them access critical Research andDevelopment funding and craft effective commercialization plans. MTIP is funded through theMontana Department of Commerce.Website: https://montanainnovationpartnership.orgIndian Country Economic Development Program (ICED)Since FY 2006 the ICED program has led efforts in assisting tribal governments and Nativeentrepreneurs to start tribal enterprises, grow the small business sector and provide businesscounseling to reservation-based communities. Through direct grants to tribal governments, the ICEDprogram funds business and feasibility planning to support tribes in launching tribal enterprises orexpanding revenue-producing activities. Small business grants are awarded to Native entrepreneurs toexpand businesses and build equity to increase the potential of accessing commercial capital.
Website: http://marketmt.com/ICPState Tribal Economic Development Commission (STED)The State Tribal Economic Development Commission (STEDC) is charged with assisting, promoting,encouraging, developing, and advancing economic prosperity and employment on Indian reservationsin Montana which includes the expansion of tribal tourism. STED identifies policy barriers, commissionseconomic demographic studies, highlights economic barriers and providing potential solutions to growtribal economies.Website: http://marketmt.com/STEDCMontana Indian Language Program (MILP)Managed by the STED Commission at the Montana Department of Commerce, MILP perpetuatesNative languages in Montana by providing funding to the 8 tribal nations in the state. Resources areleveraged to develop and implement language perpetuation strategies, to develop audio/videolanguage recordings, and to create reference materials and curricula. The program is assisting inpreserving the 12 Native languages that have been affected by rapid language loss over the lastcentury.Website: http://marketmt.com/MILPExport MontanaExportMontana helps Montana manufacturers and service providers sell outside the USA. Assistanceprovided includes market assessment, access, and development so Montana-based employers cantake advantage of regional, national and international trade promotions and grants for developingnew markets. Available programs include the Trade Show Assistance Program grant for exhibiting atnational trade shows, and the federally-funded State Trade Expansion Program grant for internationalmarketing. The state’s 300,000 statutory appropriation is used to access federal matching fundsfrom the Small Business Administration which was 401,818 in FFY 2018.Website: http://marketmt.com/ExportDiplomacy and International RelationsThe Office of Trade and International Relations provides coordination services for diplomacy relatedopportunities with state agencies and organizations that focus on strengthening government togovernment relationships with countries outside the United States. It assists in setting up meetings withConsul Generals, executing in-bound and out-bound trade/diplomacy missions and is central inmatching diplomats and foreign businesses with state and business leaders.Website: http://marketmt.com/tradeBusiness Assistance Bureau Performance Indicators:PERFORMANCEActualFY 2019ProjectedFY 2020ProjectedFY 2021ProjectedFY 2022Projected FY 2023Certified Regional Development Corporations Program (CRDC)Certified CRDCs1111111111Counties Served5151515151Montana Micro Business Finance Program (MBFP)
PERFORMANCEActualFY 2019ProjectedFY 2020ProjectedFY 2021ProjectedFY 2022Projected FY 2023Dollar Amount ofOutstanding Loansto MBDCs 4,689,00 4,689,000 4,689,000 4,689,000 4,689,000Full Time PositionsSupported162170180190200EDA WP RLF PerformanceNumber of EDAWP RLF LoansFunded12022Amount of EDAWP RLF LoansFunded 1,600,000 2,000,000 0 800,000 800,000Amount of EDAWP RLF LoanRepayments 672,726 773,775 792,000 850,000 900,000State WP RLF PerformanceNumber of StateWP RLF LoansFunded01123Amount of StateWP RLF LoansFunded 0 1,250,00
MONTANA DEPARTMENT OF COMMERCE 2023 Biennium Goals and Objectives 301 S Park Ave Helena, MT 59601 406.841.2700 . Department of Commerce: The Department of Commerce partners with communities, businesses, and organizations across the state to strengthen Montana's economy. The Department supports the development of affordable and vibrant
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