During the 1980s and 1990s, the City of Billings operated a revolving loan fund for downtown building and business improvements. By 2000, the $1.6 million fund was nearly depleted and the City could not originate new loans. In October 2000, the City of Billings and five banks with downtown offices executed an Inter-Creditor Agreement. That agreement extended up to $1.6 million in bank loan funds to improve downtown businesses and properties. The amount was later expanded to $3.2 million. The original agreement had a five-year term and at the end of that time, the banks and City extended the agreement for five more years. The contract was renewed for another five years on September 14, 2010.
 
Representatives of the seven banks, Downtown Partnership and City met on the morning of October 30, 2012. This group contained three members of the Downtown Revolving Loan Fund Committee. All seven bank representatives signed the amendment that allows Rocky Mountain Bank to participate in the Downtown Revolving Loan Fund and distribute an even participation percentage among all banks.

The City Council may

• Approve the amended Inter-Creditor Agreement and allow the Revolving Loan Fund to continue operating with participation by Rocky Mountain Bank, or
• Disapprove the Inter-Creditor Agreement amendment. The City would make no more loans for downtown property improvements. The City would be obligated to continue collecting loan payments from downtown owners and to repay each bank that has an outstanding commitment to the loan fund.

The Inter-Creditor Agreement obligates the City to repay loans that are committed by the banks. The primary source of security for the bank loans is the City's portion of the Fund and secondarily, the security provided by the end borrowers. Security is usually in the form of second mortgages and personal guarantees. There are 23 outstanding loans with $2.26 million in loans receivable. Only one borrower is delinquent, totaling about $72,600.

Staff, the Revolving Loan Committee, and seven participating banks recommend that the City Council approve the amendment to the Inter-Creditor Agreement that adds Rocky Mountain Bank and distributes an even participation percentage between all banks.