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NDDF Programs

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.
 
North Dakota Development Fund Revolving Rural Loan Fund Rural Incentive  Child Care Loan Program







 

North Dakota Development Fund

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 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   MISCELLANEOUS In cases of a preferred security or convertible note:
Risk Rating: Subject to risk of project
Term: 1-10 years, dependent upon project
    
 

Revolving Rural Loan Fund

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
     
 
 

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
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
 
 

Childcare Loan Program

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
  
 
Development Fund Fact Sheet
File Size: 403 kb

NDDF Application
File Size: 266 kb

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