For the first two years she was in business, Bobbi Ecklund leased her building.

But this summer, with the help of a program offered by the U.S. Small Business Administration, Ecklund was able to purchase the former Pizza Hut restaurant that's home to her Great Harvest Bakery franchise at Malfunction Junction.

Through the SBA's "504" program, administered locally by the Montana Community Finance Corp., Ecklund was able to purchase the building with a smaller down payment, and nearly half her loan was at a lower fixed rate than would be available from a bank in a traditional loan.

"It's the difference between being able to buy the building and not," Ecklund said.

The 504 program helps small businesses of all kinds with building or large equipment purchases. MCFC was recognized Thursday for being the top 504 lender in the state, gaining approval for 21 loans for a total of $9.9 million across Montana. Banks provided an additional $12.8 million to those 21 borrowers.

Rather than put 20 percent down and borrow 80 percent from a bank in a more standard arrangement, Ecklund was able to buy her building with 10 percent down. Valley Bank of Helena provided 50 percent of the funding, with the SBA financing the rest at a fixed interest rate for 20 years.

"It's the fixed rate for 20 years that gives them stability," said Valley Bank vice president Byron Beley. "Plus, the program allows the borrower to get in with less down, and allows more businesses to start up and be successful."

MCFC director Linda Kindrick said the 504 program can help line up financing for any kind of business in the state, from manufacturing or wholesaling to medical or other service sector businesses.

"We get referrals from banks, business owners contact us, we get referrals from small business development centers," she said.

MCFC works with businesses across Montana, but Lewis and Clark County businesses tied for the most loans in the state last year with five.

MCFC, one of three approved 504 lenders in the state, accounted for just over half the 504 activity in the state over the past 12 months.

The 21 loans go to businesses that already had 295 employees and will help with the creation of 267 new positions in the state.

"It truly is economic development, because job creation and retention are components" of the 504 program, said Michelle Johnston, SBA director for Montana.

Over the past five years, MCFC has gained approval for 79 loans for more than $32 million.

Reporter John Harrington: 447-4080 or john.harrington@helenair.com