Montana’s Conduit Bond Financing Options Expanded for Non-Profits, Businesses
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HELENA, Mont. – The Montana Department of Commerce announced today that the Montana Facility Finance Authority will begin providing conduit bonds to a broader range of projects. With the passage of Senate Bill 104, signed by Governor Greg Gianforte on April 16, 2025, more Montana businesses and nonprofits will benefit from a clear, reliable route to the bond market — without relying on taxpayer funds.
“Conduit bonds play a vital role in driving economic development by enabling large-scale projects that provide substantial public benefits, such as healthcare and housing,” said MFFA Executive Director Adam Gill. “These investments not only create jobs and stimulate local economies but also enhance the overall quality of life for Montanans.”
For over 40 years, MFFA has served as a statewide issuer of healthcare bonds, facilitating the issuance of more than $4 billion in bonds across Montana. SB 104, sponsored by Sen. Gayle Lammers (R - Hardin) expands access to MFFA’s financial expertise, enabling a broader range of borrowers — including schools, museums, energy providers, broadband providers and manufacturing facilities — to move forward with critical expansion projects that might otherwise face delays, reductions or cancellation.
SB 104 creates a clear and consistent pathway to let private borrowers work with private lenders. While not obligating anyone to participate in the bond market or imposing risk on state or local governments, the bill creates a path to the market for projects with a clear public benefit.
In addition to providing MFFA with a new, expansive reach, SB 104 triples the biennial bond issuance cap from $500 million to $1.5 billion. It also automatically increases the cap by 3 percent every two years.
“For the last 40 years, the MFFA provided access to the bond market for healthcare facilities across Montana — that’s been our core expertise,” Gill said. “That avenue has always been available to other organizations, but they had to work through local governments that weren’t consistently available or equipped with the resources to help. This new law changes that. It allows us to offer our expertise directly to a broader range of eligible projects, without creating any obligation for the state or its taxpayers. It’s a win for the organizations, a win for communities and a win for Montana.”
The MFFA is governed by a seven-member board who are appointed by the governor and confirmed by the senate. It is a quasi-judicial board which is administratively attached to Commerce.
“Conduit bonds play a vital role in driving economic development by enabling large-scale projects that provide substantial public benefits, such as healthcare and housing,” said MFFA Executive Director Adam Gill. “These investments not only create jobs and stimulate local economies but also enhance the overall quality of life for Montanans.”
For over 40 years, MFFA has served as a statewide issuer of healthcare bonds, facilitating the issuance of more than $4 billion in bonds across Montana. SB 104, sponsored by Sen. Gayle Lammers (R - Hardin) expands access to MFFA’s financial expertise, enabling a broader range of borrowers — including schools, museums, energy providers, broadband providers and manufacturing facilities — to move forward with critical expansion projects that might otherwise face delays, reductions or cancellation.
SB 104 creates a clear and consistent pathway to let private borrowers work with private lenders. While not obligating anyone to participate in the bond market or imposing risk on state or local governments, the bill creates a path to the market for projects with a clear public benefit.
In addition to providing MFFA with a new, expansive reach, SB 104 triples the biennial bond issuance cap from $500 million to $1.5 billion. It also automatically increases the cap by 3 percent every two years.
“For the last 40 years, the MFFA provided access to the bond market for healthcare facilities across Montana — that’s been our core expertise,” Gill said. “That avenue has always been available to other organizations, but they had to work through local governments that weren’t consistently available or equipped with the resources to help. This new law changes that. It allows us to offer our expertise directly to a broader range of eligible projects, without creating any obligation for the state or its taxpayers. It’s a win for the organizations, a win for communities and a win for Montana.”
The MFFA is governed by a seven-member board who are appointed by the governor and confirmed by the senate. It is a quasi-judicial board which is administratively attached to Commerce.
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