Welcome to the first issue of the North Dakota Development Fund quarterly e-newsletter. If you would like to continue receiving this e-newsletter, visit www.NDDevelopmentFund.com to sign up.
ND Development Fund Approves Projects
The North Dakota Development Fund awarded funding for five projects totaling $980,000 since July.
Here's some insights into the projects:
Ideal Aerosmith, Inc. (Grand Forks) was awarded $300,000 for an employee retention initiative. Ideal Aerosmith is a manufacturer of inertial test systems and aircraft instrument test equipment.
Wallgren Morehouse, Inc. /The Tot Spot (Hillsboro) was awarded a $30,000 loan for start-up of the company’s fifth daycare center.
Dan’s Tank Company (Berthold) was awarded a $250,000 loan to provide funding for inventory and raw material purchases. Dan’s Tank Company manufactures oil tanks, walkways and grade leveling bands.
Heimbuch Potatos, LLC (Cogswell) was awarded a $300,000 loan to purchase equipment and make improvements to their main plant and storage facility.
A Step Ahead Learning Center, Inc. (Fargo) was awarded a $100,000 loan to purchase equipment, and for working capital for their new center.
Funding for Childcare Available
The North Dakota Development Fund is authorized to provide financial assistance to childcare providers through the Child Care Loan Program.
Eligible Organizations: Licensed profit, non-profit and public child care facilities. Faith based organizations are eligible but must follow all appropriate federal guidelines if receiving federal subsidies.
Eligible Uses: Maximum of $100,000 for the acquiring, leasing, or remodeling of real estate facilities, purchasing equipment or working capital.
Tot Spot Finds Success with NDDF
If you ask Kari Morehouse what prompted her to start her business, Tot Spot, she may just tell you it was fate. When the demands of balancing a full-time career with family life grew tiring, her husband jokingly suggested she offer to buy the small daycare center their child was attending. Within days of that conversation, a note showed up in her son’s box announcing that the center was for sale. Morehouse made an offer and opened Tot Spot in Fargo in July 2007.
“We grew faster … than I ever thought we would,” says Morehouse. She points to her professionally-credentialed and dedicated staff, as well as the availability of commercial real estate, for Tot Spot’s success. Morehouse also credits the North Dakota Development Fund.
“The funds from the Development Fund were greatly appreciated,” she explains. “Not only were they low interest but they required me to come up with an official business plan that other loans didn’t … this was a very informative and eye-opening process.”
North Dakota’s Development Fund provided capital for equipment, furniture and transport vans for Tot Spot’s six locations. Morehouse proudly explains the need for the vans: “The Tot Spot transports kids to and from schools, but also does many educational field trips including holiday festivals, plays and agricultural events to educate our kids on the farm-to-table process.”
The North Dakota Development Fund was created in 1991 as an economic development tool. It provides flexible gap financing through debt and equity investments for new or expanding North Dakota primary sector businesses. Primary sector businesses create new wealth and are typically manufacturers, food processors and exported service companies.