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The Development Fund offers a number of flexible financing options for new or expanding primary sector businesses in North Dakota. Information about each of their programs is offered below.
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North Dakota Development Fund
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| Debt: |
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Equity: |
| BORROWER |
Any primary sector business |
|
BORROWER |
Any primary sector business or an investment vehicle for investment into a primary sector business |
| FUNDING LIMIT |
Up to $3,000,000
Average Loan: $300,000 |
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FUNDING LIMIT |
Up to $3,000,000
Average convertible note: $250,000 |
| INTEREST RATE |
Subject to risk of project |
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MINIMUM EQUITY REQUIREMENT |
15% |
| TERM |
1-10 years, dependent upon project |
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PERSONAL/CORPORATE GUARANTEES |
Yes |
MINIMUM EQUITY
REQUIREMENT |
15% |
|
QUALIFICATIONS |
A North Dakota Business |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
|
COST AND FEES |
1% of original loan or equity balance |
| COST AND FEES |
1% of capital deployed |
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MISCELLANEOUS |
In cases of a preferred security or convertible note:
Risk Rating: Subject to risk of project
Term: 1-10 years, dependent upon project |
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Revolving Rural Loan Fund
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| Debt: |
|
Equity: |
| BORROWER |
Any primary
sector business |
|
BORROWER |
Any primary sector business or an investment vehicle for investment into a primary sector business |
| FUNDING LIMIT |
Up to
$3,000,000
Average loan:
$300,000 |
|
FUNDING LIMIT |
Up to $3,000,000
Average convertible note: $250,000 |
| INTEREST RATE |
Subject to risk of project |
|
MINIMUM EQUITY REQUIREMENT |
15% |
| TERM |
1-10 years,
dependent upon
project |
|
PERSONAL/CORPORATE GUARANTEE |
Yes |
MINIMUM EQUITY
REQUIREMENTS |
15% |
|
QUALIFICATIONS |
A North Dakota business |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
|
COST AND FEES |
1% of original loan or equity balance |
| COST AND FEES |
1% of capital deployed |
|
MISCELLANEOUS |
In cases of a preferred security or convertible note:
Risk Rating: Subject to risk of project
Term: 1-10 years, dependent upon project
For business located in cities with a population of less than 8,000 or more than 5 miles outside city limits |
| MISCELLANEOUS |
For business located
in cities with a
population of less
than 8,000 or more than 5 miles
outside city limits |
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Rural Incentive Growth Program
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| BORROWER |
Cities with population of less than 2,500 |
| FUNDING LIMIT |
Maximum of $75,000 |
| INTEREST RATE |
Lower than market rate - subject to risk of
project |
| TERM |
Working capital 1-3 years,
Equipment 3-5 years,
Real estate 7-10 years |
MINIMUM EQUITY
REQUIREMENT |
N/A |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
| QUALIFICATIONS |
A North Dakota business that provides
a community an essential service with
ND Dept. of Commerce Commissioner
approval |
| COST AND FEES |
1% of original loan or equity balance |
| MISCELLANEOUS |
The loan is made to the city
which in turn loans to the business
Does not have a job requirement |
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Childcare Loan Program
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| BORROWER |
Any licensed childcare provider |
| FUNDING LIMIT |
Maximum of $100,000 or availability of funds |
| INTEREST RATE |
2.5% - Fixed |
| TERM |
Working capital 1-3 years,
Equipment 3-5 years,
Real estate 7-10 years |
MINIMUM EQUITY
REQUIREMENT |
N/A |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
| QUALIFICATIONS |
A licensed North Dakota childcare provider |
| COST AND FEES |
Negotiable |
| MISCELLANEOUS |
Does not have a job requirement |
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