Development Fund

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North Dakota Development Fund

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.

 

Development Fund Fact Sheet

Online Banking Login

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North Dakota Development Fund Programs

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North Dakota Development Fund

The NDDF provides flexible gap financing to new or expanding primary sector businesses in North Dakota. Funds are available through direct loans, participation loans, subordinated debt and equity investments.

Use of funds: The NDDF funds may be used to provide working capital or to finance the purchase of fixed assets, but not to refinance existing debt. Funds may be used to purchase real property and equipment, expand existing facilities, provide working capital, and purchase inventory.

Debt:   Equity:
BORROWER Any primary sector business   BORROWER Any 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   RATE OF RETURN

In cases of a preferred security or convertible note: Interest/Dividend Rate: Subject to risk of project

TERM 1-10 years, dependent upon project   TERM 1-10 years, dependent upon project
MINIMUM EQUITY
CONTRIBUTION
15%   MINIMUM EQUITY REQUIREMENT 15%
PERSONAL/CORPORATE
GUARANTEES
Yes   PERSONAL/CORPORATE GUARANTEES No
COST AND FEES

1% of capital deployed plus any legal fees incurred by NDDF.

  COST AND FEES 1% of original loan or equity balance plus any legal fees incurred by NDDF.


Applications are reviewed on a first come, first-serve basis. Applications and supporting information should be submitted via email to hlange@nd.gov

For question regarding the NDDF, please contact Hannah Lange, 701-328-7254.

NDDF Application

Application Guide
 

Accountability Information Release - NDDF

Regional Rural Development Revolving Loan Fund

The NDDF administers the Regional Rural Development Revolving Loan Fund, which provides flexible gap financing to primary sector businesses located in a community of less than 8,000 in population or located more than five miles outside of city limits. Funds are available through direct loans, participation loans, subordinated debt and equity investments.

Use of funds: The Regional Rural Development Revolving Loan Fund funds may be used to provide working capital or to finance the purchase of fixed assets, but not to refinance existing debt. Funds may be used to purchase real property and equipment, expand existing facilities, provide working capital, and purchase inventory.

 

Debt:   Equity:
BORROWER Any primary sector business   BORROWER Any primary sector business 
FUNDING LIMIT Up to $3,000,000 
Average Award: $300,000
  FUNDING LIMIT Up to $3,000,000
Average Award: $250,000
INTEREST RATE Subject to risk of project   RATE OF RETURN

In cases of a preferred security or convertible note:
Interest/Dividend Rate: Subject to risk of project

TERM 1-10 years, dependent upon project   TERM 1-10 years, dependent upon project
MINIMUM EQUITY
CONTRIBUTION
15%   MINIMUM EQUITY REQUIREMENT 15%
PERSONAL/CORPORATE
GUARANTEES
Yes   PERSONAL/CORPORATE GUARANTEES No
COST AND FEES 1% of capital deployed plus any legal fees incurred by NDDF.   COST AND FEES 1% of original loan or equity balance plus any legal fees incurred by NDDF.
MISCELLANEOUS 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

 

Applications are reviewed on a first come, first-serve basis. Applications and supporting information should be submitted via email to hlange@nd.gov.

For question regarding the Regional Rural Development Revolving Loan Fund, please contact Hannah Lange, 701-328-7254.

NDDF Application

Application Guide
 

Accountability Information Release - NDDF

Rural Growth Incentive Program

The NDDF manages the Rural Growth Incentive Program which provides loans to Rural Growth Incentive cities for a qualifying business. Rural Growth Incentive cities must have a population less than 2,500 and be certified as a Rural Growth Incentive city by the ND Department of Commerce. The city must raise dollar-for-dollar matching funds. A qualifying business must provide an essential service to the city which is determined by the city’s governing body and the ND Department of Commerce.

Grant dollars of up to $10,000 are available to Rural Growth Incentive cities for a feasibility study related to an essential business.

Rural Incentive Growth Program
BORROWER Cities with population of less than 2,500
FUNDING LIMIT $25,000 - $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
REQUIREMEN
T
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

Awards must have a 1:1 match


The North Dakota Development Fund (NDDF) must receive a letter from the community requesting funding which contains the information and documentation outlined below:

  • Request for designation as a Rural Growth Incentive City
    • Requirement: Population of less than 2,500
  • Request for loan and/or grant dollars
    • Up to $10,000 grant to defray costs of a feasibility study
    • $25,000 - $75,000 for a loan
  • Documentation verifying the community’s dollar-for-dollar match (any source of public/private funds)
    • Shall include a copy of the check, financial statement or receipt, as well as proof the funds were deposited into a designated account
  • Statement from the community that the business qualifies for funding as an Essential Service Company.
    • I.e., a company that provides an essential service(s) to the community
    • Does not include Public Utility
    • The governing body of the city determines whether a business qualifies for funding
    • Additionally, the Commissioner of the Department of Commerce determines whether a business that provides an essential service qualifies for funding
  • Complete North Dakota Development Fund loan application including a business plan with financial information and sources and uses of the requested funds on behalf of the essential service company.
  • The community shall also provide financial information to the NDDF.

Commerce is committed to providing the rural growth incentive city with training to assist in expanding businesses, locating new businesses, and working with state economic development programs. To that end, Commerce will designate an economic developer to work with the business upon request.

Please reach out to Samantha Mattson, 701-328-7252, with any questions relating to the community's application for funding.

NDDF Application

Accountability Information Release - NDDF

Childcare Loan Program

The North Dakota Development Fund is authorized to provide financial assistance to new and expanding childcare providers through the Childcare Loan Program.

Eligible Organizations: Licensed profit, nonprofit and public childcare facilities. Faith-based organizations are eligible but must follow all appropriate federal guidelines if receiving federal subsidies.

Eligible Uses: The Childcare Loan Program funds may be used 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 per location or based on availability of funds
INTEREST RATE 2.5% - Fixed
TERM 1-10 years, dependent upon project
MINIMUM EQUITY
REQUIREMENT
N/A
PERSONAL/CORPORATE
GUARANTEES
Yes
QUALIFICATIONS A licensed North Dakota childcare provider
COST AND FEES $250


Applications are reviewed on a first come, first-serve basis. Applications and supporting information should be submitted via email to smattson@nd.gov.

For question regarding the Childcare Loan Program, please contact Samantha Mattson, 701-328-7252.

North Dakota Childcare Loan Program Application

Additional Resources:

Accountability Information Release


 

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NDDF Staff

Jessica Nygaard

Jessica Nygaard
NDDF CEO

Hannah Lange
NDDF Venture Financing Manager

Samantha Mattson
NDDF Venture and Credit Analyst

NDDF Board of Directors
 


Jim Albrecht - Wahpeton
President
Manufacturing/Rural
Comdel Innovations
 

Erik Barner - Fargo
Vice President
Private Sector
Broadwater Capital

Robert Lindberg - Bismarck
Secretary/Treasurer
Industrial Technology Research and Finance
Laventure
 
Nathan Davis - Belcourt
Native American Representative
North Dakota Indian Affairs

Shawn Kessel - Fargo
Agency
Department of Commerce
 
Lyndsay Ulrickson - Minot
Industrial Technology and Research
Bush Foundation


Joel Brown - Watford City
Industrial Technology and Research
First International Bank & Trust
 

Open Seat
Finance