The U.S. Small Business Administration Thursday recognized the top lenders in the state for providing SBA-backed start-up and expansion loans to small businesses, as well as the government agencies that signed the most contracts with minority firms.

"These lenders help provide economic opportunities for those looking to go into business," said Michelle Johnston, the state SBA director.

Glacier Bancorp, headquartered in Kalispell and the holding company for Valley Bank of Helena among other community banks around the state, was the top SBA lender in the year ended Sept. 30, making 76 loans totaling nearly $6.6 million. Vice President Don Chery said the company's practice of leaving the banks it acquires as stand-alone institutions helps generate SBA activity.

"When you own small community banks and leave them as small community banks, they have a tendency to be more community oriented," he said. "Just because of our model, we fit better with the SBA programs. We want to maintain the image in these communities that we are your local, community bank."

While Glacier again topped the state in SBA-backed lending, its totals were lower than in past years. Two years ago, for instance, Glacier made 95 government-backed loans for $12.2 million. Chery said it's difficult to reach any conclusions about the state's economy based on a decline in SBA lending.

"I think the economy's down a little bit this year, but I don't know if that affects the SBA programs as much," he said. "I don't know if there's any correlation."

The Helena-based Montana Community Finance Corp. was the top lender in the SBA program to provide real estate and building loans for small businesses, with 22 loans for more than $7 million. Firms can acquire funds to buy land or build a building with as little as 10 percent down, less than is required for a traditional loan.

"We've had a great year," said MCFC director Linda Kindrick. "I think things are happening in the state that are good, and people are needing bigger space."

The SBA also honored the federal General Services Administration as its Agency of the Year for awarding 12 contracts totaling nearly $2.6 million to small, disadvantaged businesses to help them gain access to the federal procurement market.

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