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The Development Fund offers a number of flexible gap 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
|
| BORROWER |
Any primary sector business |
| FUNDING LIMIT |
Up to $1,000,000 and based on job
requirement |
| 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 |
15% |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
| QUALIFICATIONS |
A North Dakota business |
| COST AND FEES |
1% of original loan or equity balance |
| MISCELLANEOUS |
For businesses located in cities with a
population of 8,000 or more
Loan amount based on job creation of
$40,000 per FTE created
Equity financing available |
|
Revolving Rural Loan Fund
|
| BORROWER |
Any primary sector business |
| FUNDING LIMIT |
Up to $1,000,000 and based on job
requirement |
| 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
REQUIREMENTS |
15% |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
| QUALIFICATIONS |
A North Dakota business |
| COST AND FEES |
1% of original loan or equity balance |
| MISCELLANEOUS |
For businesses located in cities with a
population of less than 8,000 or more than
5 miles outside city limits
Loan amount based on job creation of
$50,000 per FTE created
Equity financing available |
|
Rural Incentive Growth Program
|
| 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 |
15% |
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 |
|
Childcare Loan Program
|
| BORROWER |
Any licensed childcare center |
| FUNDING LIMIT |
Maximum of $100,000 or availability of funds |
| INTEREST RATE |
2.5% - Subject to risk of project |
| TERM |
Working capital 1-3 years,
Equipment 3-5 years,
Real estate 7-10 years |
MINIMUM EQUITY
REQUIREMENT |
15% |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
| QUALIFICATIONS |
A licensed North Dakota childcare provider |
| COST AND FEES |
Negotiable |
| MISCELLANEOUS |
Does not have a job requirement |
|
New Venture Capital Program
|
| BORROWER |
Any primary sector business |
| FUNDING LIMIT |
Up to $300,000 |
| 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 |
15% |
PERSONAL/CORPORATE
GUARANTEES |
Yes |
| QUALIFICATIONS |
A North Dakota business |
| COST AND FEES |
1% of original loan or equity balance |
| MISCELLANEOUS |
Does not have a job requirement
Equity financing available |
|
Small Business Technology Program
|
| BORROWER |
Any start-up primary sector business in
technology field |
| FUNDING LIMIT |
Maximum of $50,000 |
| INTEREST RATE |
Lower than market rate subject to risk of
project |
| TERM |
Proof of concept 1-5 years,
equipment 5-7 years,
real estate 10-15 years |
MINIMUM EQUITY
REQUIRMENT |
15% |
PERSONAL/CORPORATE
GUARANTEE |
Yes |
| QUALIFICATIONS |
A North Dakota Business |
| COST AND FEES |
1% of original loan or equity balance |
| MISCELLANEOUS |
For every $1 of state funds,
$2 of certified North Dakota
angel funds is required
Recipient may not receive more than
one investment
Equity funding available
Does not have a job requirement |
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