Rep. Jones’ Companies received $4.3 million in loans from program he helped oversee

A Montana Republican state representative, Llew Jones, received more than $4 million in low-interest federal loans through a program he helped create and sat on the commission formed to oversee — raising questions about conflicts of interest and possible violations of the program’s own lending caps, according to a report by Yellowstone County News.

Rep. Llew Jones of Conrad, who has served in the Montana legislature since 2005, received loans totaling $4.365 million across three limited liability companies connected to him and members of his family, the Yellowstone County News investigation found. The Montana Down Payment Assistance Loan Program, funded through the federal American Rescue Plan Act, states that no person or entity may receive more than $3 million in aggregate loans.

The three businesses — Frontline Ag Solutions LLC, Dealco LLC, and Havre Ford CFRE LLC — share overlapping ownership, common addresses in Conrad, and list Jones, his wife Carole Jones, and other family members in state corporate filings. Jones is identified as a member or manager in Secretary of State records associated with all three entities.

Jones was not only a recipient of the loans. He was also a sitting member of the Economic Transformation and Stabilization and Workforce Development Advisory Commission, the body established under House Bill 632 to review applications and oversee how the state distributed roughly $2 billion in federal ARPA funds. Jones was one of the principal architects of HB 632 itself, which passed the legislature in 2021 with his support as House Appropriations chair.

Commission members were required to sign a conflict-of-interest form prohibiting them from participating in “the selection, award, or administration” of any contract in which they, their immediate family, or affiliated organizations held a financial interest. Whether Jones signed and complied with that form is not yet confirmed. A public records request for a copy of the signed document has been submitted, according to Yellowstone County News.

Two fellow commission members said they were blindsided by the revelations. Democratic Sen. Ryan Lynch of Butte, who confirmed he signed the conflict-of-interest form, called it “alarming” that a commission member could have received loans without disclosing a conflict. Republican Sen. Carl Glimm of Kila said he was also unaware, adding that the situation “doesn’t pass the smell test” and “should be very concerning.”

It is unclear whether Jones recused himself from any commission votes related to the program or its recipients. Federal guidelines governing ARPA funds require recipients to establish conflict-of-interest policies and disclose potential conflicts in writing.

Jones was the only sitting state officeholder identified in the loan recipient list, though two former officials also received loans: former Democratic Gov. Steve Bullock, who received $370,500 for a business called Third Term LLC after leaving office, and former Republican House Majority Leader Ronald Ehli of Hamilton, who received $655,544 across two businesses co-owned by his wife.

The Yellowstone County News report notes this is not the first time Jones has faced scrutiny over the intersection of his legislative work and personal finances. In 2010, various media outlets reported that Jones proposed a $475,000 budget amendment for a biomass energy study shortly before his wife created a company that received those funds. Jones defended the arrangement at the time.

The loan disclosures come as Jones faces a competitive Republican primary race for a state Senate seat against fellow House Republican Rep. Zack Wirth. Campaign finance records show Jones has injected $25,000 of his own money into the race, and he has retained Fireweed, a Democratic consulting firm, to assist with his campaign — an unusual choice for a Republican legislator that is likely to draw additional scrutiny from conservative primary voters already weighing the loan controversy.

By Montana Newsroom staff