| Description: |
1. NORTH DAKOTA DEVELOPMENT FUND This fund provides long-term and short-term "gap" financing on a secondary basis, subordinate to private sources, for eligible projects of any primary-sector business (new, expanding, or relocating) with the exception of production agriculture. The financing is provided via direct loans, participation loans, subordinated debt and equity investments. Any project considered for this financing must be feasible and have a reasonable chance of succeeding. Up to 50% of a project may be funded, up to $300,000.
2. LOCAL ECONOMIC DEVELOPMENT LOAN PROGRAM This program provides an interest buy down by the local community which uses a portion of the local sales tax.
3. BUSINESS DEVELOPMENT LOAN This BND program is available to any type of business, new or existing, and is limited to $500,000 per project. The percentage is negotiated on a loan-by-loan basis. The local lender's portion will be at least 30% of the total loan amount. This program may be used for refinancing.
4. PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION (PACE) This BND fund is available to manufacturing, processing, data processing, communications, telecommunications, and targeted service businesses. The funds may be used for the purchase of real property and equipment and certain working capital requirements. The business must demonstrate within one year the creation of at least one new job for every $75,000 of total loan proceeds.
5. 504 PROGRAM: DAKOTA CERTIFIED DEVELOPMENT CORPORATION (DCDC) This BND program offers long-term financing of real estate and equipment in order to assist in creating and retaining jobs. Up to 40% of the total project costs may be funded, or from $50,000 to $1,000,000 (or higher). The business must inject at least 10% of the total funds for any project. The balance, usually 50%, is provided by the local lending institution.
6. MATCH PROGRAM This program targets financially strong manufacturing, processing and value-added companies. Loan interest rates, some of the lowest in the nation, are offered to such companies for financing real estate, machinery and equipment, and for the purchase or leasing of equipment.
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| Eligibility Requirements: |
1., 2., 3., 4., 5., and 6. Must be an eligible business. Loans can be used for construction, equipment purchases, working capital, refinancing, and other qualified uses. Must be approved by the governing authority for each loan program. |
