THE LOCALE
 Billings , Montana is a city of 125,000 people  and typical of hundreds of towns in the  United States. Small town s are a good place  to take credit risk because they are culturally  homogenous, have moderately growing  populations and economies , and do not  have significant transient populations.

Montana and the Dakotas recorded a healthy 3% growth in 2003, making this region the fastest growing in the United States. Montana’s economy has benefited particularly from strength in agricultural and oil prices. The weak US dollar and concerns about foreign travel have benefited the local tourist industry. Mandatory upgrades to the oil refineries are expected to bring additional benefits to the local economy.

Billings itself is an economic hub for this region and has an international airport. Several large retail outlets, including Wal-Mart, Home Depot and Lowe’s, use Billings as the center for business in the region. Billings is also a regional medical center with two top-flight medical facilities, and draws patients from a radius of 250 miles. In fact, Square One does substantial business with employees within the medical industry. Continued investment in the city’s medical infrastructure and Montana’s appealing lifestyle attracts medical personnel from all over the country.

Many great companies have grown up in small and mid-sized American town s. Square One believes that any city or town in the Mountain West that functions as an economic singularity is an attractive location for the company to expand.