Bear Paw Development Corporation: 45+ years of helping our region

Reporter's note: In the process of covering a number of city council meetings in Blaine County over the last couple of years, I often ran into staff members with Bear Paw Development Corporation. It took several meetings before I began to have some inkling of what Bear Paw Development was about and how they helped local communities.

I asked to meet with Paul Tuss, Executive Director of Bear Paw Development, to learn more about the history of and role the group plays in the economic wellbeing of our area. I'd heard of the group but I was not clear about what they did. Here's some of what I learned.

A short history of

Bear Paw Development Corporation (BPDC)

Bear Paw Development is a 'U.S. Economic Development District.' Organized in 1969, it was the first such district created in Montana. Now, according to Executive Director Paul Tuss, there are about a dozen of these economic development districts in the state. He said, "Most of the Montana economic districts are organized along the 'Bear Paw Model.' It's a model that is used throughout rural Montana and in many other states."

To form an economic district, there must be at least two counties involved. The original organizing members were Hill and Blaine Counties along with two tribal governments-Rocky Boy and Fort Belknap. Over the years Liberty, Chouteau and Phillips County were added. There are 15 member entities in the district.

BPDC is governed by a board of directors made up of representatives from each member entity plus members-at-large who are active in their communities or involved in some economic sector of the region. This board selects and manages the executive director who oversees the staff of the development group. Paul Tuss is the executive director and has been in that position since 2000. Tuss noted there have only been four executive directors through the 45-plus years of operation of BPDC.

BPDC's community development mission

Tuss said, "We have two types of development in which we are engaged. Originally Bear Paw Development only worked in community development helping the various governmental members improve or expand their infrastructure-like water treatment and waste water treatment projects." Once a local governmental entity identifies a problem that needs attention, Bear Paw Development helps find funding sources, write grants or loan applications to support the project and manages the activity through to completion.

"At any given time," Tuss added, "we will have $20-30 million worth of projects going. Many of these are multi-year projects. Some are large in terms of funding, like a major upgrade to a water treatment or wastewater treatment system. Others, like a downtown sidewalk improvement, are smaller in cost and scope."

BPDC's economic development component

Over time, the BPDC board of directors recognized that part of keeping communities viable was to help businesses-either to start new ones or expand existing ones. According to Tuss, "Economic development projects create new jobs and bring new services and products to a community and the region." BPDC helps entrepreneurs with a business idea through a combination of loans and business counseling.

Currently BPDC has about $8 million in a revolving loan fund to support new business ideas. Tuss explained there are two types of loan support used. "Stand alone loans," he said, "Are used to fund an entire business development project. Those include combinations of funds from BPDC and from the business owner."

Other loans are made for business ventures in cooperation with a bank, about sixty percent of the loans BPDC makes are in cooperation with banks. Tuss explained, "Because a bank may need to spread the risk of approving a loan, there is often the need for an additional source of funding. , business ideas often need an additional source of funding. Most of the funding for business ideas that involve startups or expansions include a combination of the owner's resources as well as loans from BPDC and a cooperating bank."

For applicants with no business experience or existing owners needing a little help, Bear Paw Development hosts the Small Business Development Center (SBDC) which provides guidance and help for business projects. That service is free and confidential. Services may include help preparing a business plan, making an operating budget and trainings related to starting a new business or expanding an existing operation. Tuss added, "The services of the SBDC are available to anyone who has the necessary entrepreneurial spark."

Loan applications to BPDC go before a loan review committee made up area residents including members of the board of directors. Tuss said, "Our business development staff helps prepare and present the loan application. The loan applications are scrutinized carefully, in part, because BPDC is loaning money we have borrowed from state and federal lending sources." He added, "If the loan fails it means BPDC has that much less money to loan to other businesses in our area. It's the nature of a revolving loan fund-we lend money to Main Street businesses, they pay it back and it's re-lent to the next start up or expanding business. We make loan decisions very carefully. In the end, we help the borrower to realize their dream of owning their own business." Tuss noted there are limits to the amount of funding BPDC can lend to an individual business owner.

The impact of

Bear Paw Development

Art Kleinjan, of Chinook, served on the Bear Paw Development board of directors from about 1986 to 2006, serving more than ten years as chairman of the board. He first went on the board as the representative from Blaine County, where he was serving as a county commissioner. Kleinjan said BPDC helped start or expand a number of regional businesses during his tenure on the board. He added, "On the community development side, I saw a lot of projects happen in our communities that would not have been possible without the help of BPDC-both for developing an idea and finding the funds to make it happen."

Asked about memorable projects during his time on the board, he said, "The expansion to Chinook's Sweet Nursing Home was very important as it was needed to accommodate the growing number of seniors needing help in our area. Bear Paw Development helped with all aspects of that expansion."

Paul Tuss recalled when he first came to Bear Paw Development the Little Rockies senior housing project was just finishing in Harlem. He said, "That was a great project that filled a community need for affordable, senior housing." More recently he described the funding for the Chinook water treatment upgrade, noting that sixty percent of the nearly $7 million project was funded by grants that didn't require repayment. He said, "That took a tremendous financial burden off the water customers in Chinook."

Tuss admitted there are frustrations at times. He explained, "There are some community development projects, priorities to the member entities, that simply cannot be funded from outside sources." He cited courthouse improvements, fairgrounds infrastructure upgrades and street improvements as projects that usually fall back for funding on the governing entities.

Tuss closed the interview by saying, "I came to Bear Paw Development in 2000 thinking I'd only be here three to five years. I'm still here and I love my job. Every day is a new adventure and a new learning experience. I oversee a great staff and have great bosses on my board of directors. As a group we are making a difference in the communities we serve. I am blessed."