The North Dakota Development Fund (NDDF) provides “flexible gap financing” through loans and equity investments not available from most conventional lenders for the purpose of economic development. Funds are available to new and expanding North Dakota primary sector businesses.
The NDDF 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 NDDF makes investments of up to $3,000,000 through innovative financing mechanisms including direct loans, participation loans, and subordinated debt and equity investments. Any request of $150,000 or more must be reviewed and approved by the NDDF Board of Directors.
The NDDF also administers the Regional Rural Revolving Loan Fund, Rural Growth Incentive Programs, and Childcare Loan Program.
NDDF Mission Statement:
Provide flexible gap financing through loans and equity investments to spur the development and expansion of primary sector and main street businesses in the state of North Dakota.
North Dakota Development Fund Programs
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 |
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INTEREST RATE | Subject to risk of project | MINIMUM EQUITY REQUIREMENT | 15% | |
TERM | 1-10 years, dependent upon project | QUALIFICATIONS | A North Dakota Business | |
MINIMUM EQUITY REQUIREMENT |
15% | COST AND FEES | 1% of capital deployed | |
PERSONAL/CORPORATE GUARANTEES |
Yes | MISCELLANEOUS | In cases of a preferred security or convertible note: Risk Rating: Interest/Dividend Rate Term: 1-10 years, dependent upon project |
|
COST AND FEES | 1% of capital deployed |
Applications are reviewed on a first come, first-serve basis. Applications and supporting information should be submitted via email to hlange@nd.gov.
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 | QUALIFICATIONS | A North Dakota Business | |
MINIMUM EQUITY REQUIREMENT |
15% | COST AND FEES | 1% of capital deployed | |
PERSONAL/CORPORATE GUARANTEES |
Yes | MISCELLANEOUS | In cases of a preferred security or convertible note: Risk Rating: Interest/Dividend Rate 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 |
|
COST AND FEES | 1% of capital deployed | |||
MISCELLANEOUS | For business located in cities with a population of less than 8,000 or more than 5 miles outside city limits |
Applications are reviewed on a first come, first-serve basis. Applications and supporting information should be submitted via email to hlange@nd.gov.
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 Department of Commerce Commissioner approval |
COST AND FEES | 1% of original loan amount |
MISCELLANEOUS | The loan is made to the city which in turn loans to the business Does not have a job requirement |
For question regarding the Rural Growth Incentive Program, please contact Samantha Mattson, 701-328-7252.
The North Dakota Development Fund is authorized to provide financial assistance to childcare providers through the Childcare Loan Program.
Eligible Organizations: Licensed profit, nonprofit and public child care facilities. Faith-based organizations are eligible but must follow all appropriate federal guidelines if receiving federal subsidies.
Eligible Uses: Maximum of $100,000 or availability of funds for the acquiring, leasing or remodeling of real estate facilities, purchasing equipment or working capital.
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 |
To Apply for the Childcare Loan Program
North Dakota Childcare Loan Program Application
For question regarding the Childcare Loan Program, please contact Samantha Mattson, 701-328-7252.
Qualifying Requirements
Local Participation
Participation of the childcare provider financial institution will be encouraged.
Funding Process
North Dakota Development Fund staff will review all applications under the Childcare Loan Program and complete their due diligence. Development Fund staff can approve all requests up to the $100,000 award maximum. Those loans are then taken to a following board of directors meeting for review. (Dollar limits though are cumulative and include existing advances in determining the approval process. Any daycare that aggregates funding greater than $150,000 will require Development Fund Board of Directors approval.) If the request is acceptable to the staff, the request will be presented to the North Dakota Development Fund Board of Directors for approval. If approved, a commitment letter will be generated. If the commitment letter is accepted by the childcare provider, the funding documentation will be completed. The funding process generally takes 30 to 45 days.
Other Conditions
The enabling legislation that provided the funds for this program requires an equitable distribution of funds to the three eligible organizations: for-profit, nonprofit and public childcare facilities. Therefore, the Development Fund might have to allocate dollars to the three organizational areas to ensure that the funds are being distributed equitably. Initially, funds will be provided on a first-come, first-serve basis.
- The business must be a licensed childcare provider (Provide copies of license to operate in the state of North Dakota).
- Facilities will be required to provide a letter from either County Child Care Licensors or from the Department of Human Services Early Childhood Services regional supervisor that the facility does not have a history of violations and/or corrective actions.
- If there is a history of violations and/or corrective actions, facilities will need to provide:
- A three-year "Early Childhood Service History" from either County Child Care Licensors or from the Department of Human Services Early Childhood Services regional supervisor; and
- Provide an explanation of changes that have been made to correct the violations and a letter from County Child Care Licensors or from the Department of Human Services Early Childhood Services regional supervisor that corrective action has taken place.
- The acceptability of the documentation will be at the sole discretion of the North Dakota Department of Commerce/North Dakota Development Fund in consultation with County Child Care Licensors or Department of Human Services Early Childhood Services regional supervisor for that county.
NDDF Staff
Jessica Nygaard
NDDF CEO
Hannah Lange
NDDF Venture Financing Manager
Samantha Mattson
NDDF Venture and Credit Analyst
NDDF Board of Directors
Robert Lindberg - Bismarck |
Nathan Davis - Belcourt
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Lyndsay Ulrickson - Minot
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Gary Goplen - Fargo |
Erik Barner - Fargo |
Joel Brown - Watford City |
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Jim Albrecht - Wahpeton
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James Leiman - Fargo
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Jessica Nygaard - Bismarck
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