Bank of North Dakota
- PACE (Partnership in Assisting Community Expansion) Program The PACE family of programs at BND is designed to encourage specific types of economic activity within the State of North Dakota. In general terms, PACE provides an interest buy down that can reduce the borrower’s rate of interest by as much as 5%.
- Flex PACE (Partnership in Assisting Community Expansion) Program The Flex PACE feature of the PACE program provides interest buy down to borrowers that do not fit into the traditional definition of a PACE qualifying business. Under Flex PACE, the community determines eligibility and accountability standards. Flex PACE allows communities the ability to provide assistance to borrowers with a business focus or need outside of the current requirements of PACE, such as jobs retention, technology creation with no new jobs, retail, smaller tourist businesses and essential community services.
- Beginning Entrepreneur Loan This program assists in business start-up financing by providing a financial institution with an 85% guaranty of a loan not to exceed $100,000.
- Business Development Loan Program The Business Development Loan Program is designed to assist new and existing businesses in obtaining loans that would have a higher degree of risk than would normally be acceptable to a lending institution.
- MATCH Program The MATCH program is designed to encourage and attract financially strong companies to North Dakota. The program is targeted to manufacturing, processing and value-added industries. Through this program, Bank of North Dakota (BND) participates in loans to financially strong companies and provides interest rates that are among the lowest in the nation.
- New Venture Capital Program Administered by the North Dakota Development Fund, the New Venture Capital Program through the Bank of North Dakota is an innovative financial program that provides flexible financing through debt and equity investments for new or expanding businesses in the state of North Dakota. BND can fund rapidly growing companies which require equity funding. The Bank may provide funding for early stage companies which can show clear proof of completed product development and market acceptance as evidenced by growing sales. The Bank will invest in a variety of technologies and types of businesses, including North Dakota Department of Commerce strategic target industries. BND will also invest in growth and later stage manufacturing, service and businesses with profitable growth potential.
- North Dakota Development Fund North Dakotans have an interest in financially supporting business as it provides jobs, broadens our tax base and enhances our quality of life. The North Dakota Development Fund coordinates efforts between all the sources of financing, the business and the community. Any project considered for this financing must be feasible and have a reasonable chance of succeeding. The fund provides "gap financing" through loans and equity investments not available from most conventional lenders and is available to any primary-sector business with the exception of production agriculture. The Development Fund also administers the Regional Rural Revolving Loan Fund, which provides funding for primary-sector projects located in a community of less than 8,000 in population or located more than five miles outside the city limits.
Dakota Certified Development Corporation
- DCDC IRP The DCDC is authorized by USDA Rural Development to offer direct loans to small businesses across North Dakota. These loans can be provided for community development projects, establishment of new businesses and creation of new jobs or retention of existing jobs. The IRP program is available to businesses located in cities with a population not greater than 25,000. Loan proceeds can be used for financing a new or existing business, purchasing or leasing of equipment, and working capital. Any type of legal entity including individuals, public and private organizations, and government entities can qualify for IRP funding. Borrower must be unable to obtain the proposed loan funds elsewhere at a reasonable rate and 51% of the owners or members must be citizens of the USA.
SBA Guaranteed Loans
- SBA 504 Loan Program The 504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides small businesses requiring “brick and mortar” financing with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization. Through the Dakota Certified Development Corporation, the SBA can fund up to 40% of a total project costs. The business receiving the financial assistance must inject at least 10% of the total funds for any project. The remaining balance, usually 50% is provided by a local lending institution.
- SBA Microloan Program The Microloan Program provides small, short-term loans to small business concerns as well as not-for-profit child-care centers. SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance; these intermediaries make loans to eligible borrowers. The maximum loan amount is $35,000; the average loan is about $13,000.
- SBA 7(a) Loan Program The 7(a) Loan Program is SBA’s primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. The name comes from section 7(a) of the Small Business Act, which authorizes SBA to provide business loans to American small businesses. SBA itself does not make loans, but rather guarantees a portion of loans made and administered by commercial lending institutions. 7(a) loans are the most basic and most commonly used type of loans. They are also the most flexible, since financing can be guaranteed for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.
USDA Rural Development
- Business and Industry Loan Guarantee The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits.