Conservation was contacted to assist in doing pref easibility 

 analysis and assist in securing a Small Business Administration 

 loan. This report outlines the economics of Western Montana Trout 

 Growers organization, processing plant, and operational budgets 

 for the first years of operation. 



ORGANIZATION 



It was decided to form a Local Development Company, through 

 the Small Business Administration, for two reasons. First, low 

 interest funds are available through Section 502 loans from 

 the Small Business Administration. Secondly, the Local Development 

 Company can be used for funding other projects that might show 

 potential in the western Montana area. The development Company will 

 be the structure to establish the processing plant, handle the 

 capital stock. Small Business Administration funds and local bank 

 loan funds for the project. 



Under Small Business Administration criteria, there must be 

 a minimum of 25 members in the local development corporation, plus 

 the involvement of a local bank to provide partial funding, and 

 to service the loans. Lake County Bank has been approached by 

 the Cooperative and will be working with the Small Business 

 Administration in financing the processing plant and initial 

 operating capital, totalling $56,000 to be supplied as follows: 



$34,000 Small Business Administration loan; 



$12,000 local bank loan; and 



$10,000 capital stock. 



