Amid a bleak outlook for many businesses across the state, Northwest Montana is in a better position to weather the ongoing economic fallout from the COVID-19 pandemic than most other regions, according to local bankers.

A recent survey from the Montana Bankers Association (MBA) suggests 20% of Montana businesses could go bankrupt soon if they don’t receive additional federal funding. But bankers in the Flathead Valley feel that the situation is a lot better for businesses here than those in Central and Eastern Montana.

“We’re not seeing the business failures here in our clientele here in Western Montana,” said Bob Nystuen, the market president of Glacier Bank. Glacier Bank has been a member of the MBA for decades.

The MBA surveyed 58 bank executives across the state from Nov. 18 to Nov. 20 to take the pulse of Montana banking clients. The survey results indicated many Montana businesses may not last long into the new year.

Thirty-three percent of bankers surveyed believed the business customers who survived thanks to earlier federal assistance will go out of business in 2021 without additional help.

More than 37% agreed the current strain on business is “just as serious, possibly more so, than the March/April 2020 shut down.”

And more than 80% of bankers agreed their business customers will require extra federal funding in order to stay in business—and those funds need to come sooner, rather than later.

Nystuen said the local economy has been buttressed by an influx of new residents.

“We do know that by and large the economy in Western Montana has been buoyed up by people moving here from urban areas,” he said. “That has stimulated our economy here.”

Across 16 branches throughout Western Montana, Nystuen said Glacier Bank has originated more than 1,500 loans through the federal Small Business Administration’s Payment Protection Program, which was implemented as part of the emergency Coronavirus Aid, Relief, and Economic Security Act. Total proceeds from those loans reached $110 million, and 30% went to nonprofits.

“That’s all been a way to stimulate more business and commerce to provide a lifeline to be able to weather through this,” noted Nystuen.

He said Glacier Bank also has seen cash deposits “skyrocket” across Western Montana, a sign of economic optimism for local businesses. On Dec. 1, Glacier Bank’s total customer deposits climbed above $2 billion for the 16 Western Montana branches. Last year at this time, those deposits were below $1.5 billion.

“It’s really pretty amazing,” Nystuen said. “It suggests there’s a lot of cash being deposited here in Montana.”

THAT ASSESSMENT also seems to hold true at smaller, independent banks that are grouped separately from the larger corporations in the MBA.

“I think we’re fortunate in this area,” said Don Bennett, the president of Freedom Bank in Columbia Falls. “Around here, I’m pretty optimistic.”

In Bennett’s experience, the biggest takeaway has been the variety of experiences for banking clients in different industries. The threat of bankruptcy is much more urgent for bars, restaurants, small retail stores and daycare centers than it is for businesses that operate digitally, he explained.

“It’s just such a mixed bag,” he said. While some clients have depended on federal funding to get through the year, he said others have had record years, thanks to evolving trends.

Bennett agreed with the MBA’s statement on the need to roll out additional federal assistance, but this time around, he said he’d like to see funds targeted at the businesses that need the most help.

“We need to get something done here to help the little guy,” Bennett said. “The PPP program helped out a bunch. They need to do it again but this time very specifically. There are target areas we need to focus on…like bars, restaurants, daycare, health and human-service agencies.”

BUT FOR many Flathead businesses, the biggest issue isn’t finding the funds to stay open — it’s finding the staff.

“The bigger challenge is: you drive up and down the street and see help wanted signs everywhere,” Nystuen observed. “Businesses have not been able to provide the service level and operate their business because staffing is such a challenge, only to be exacerbated by COVID. People are out sick or quarantining or taking care of children or elderly people and so forth.”

It’s not an issue that federal assistance will necessarily be able to solve, he added. Nonetheless, Nystuen agreed with the MBA’s assertion that additional federal dollars will be a boon to struggling businesses throughout Montana. “There should be more government types of assistance and programs to continue to inject cash into the economy. We think that that could work,” he said.

The burden falls to individual business owners, too, Nystuen pointed out. “Businesses that are struggling or individuals that are struggling, especially as we go into the cold winter months, there are incredible numbers of resources available,” he said. “If you ask for help, I think you’ll find it.”

Reporter Bret Anne Serbin may be reached at (406)-758-4459 or bserbin@dailyinterlake.com.