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
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
REQUIREMEN
T
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.

NDDF Application

Application Guide
 

Accountability Information Release - NDDF

Revolving Rural Loan Program
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
REQUIREMEN
T
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.

NDDF Application

Application Guide
 

Accountability Information Release - NDDF

Rural Growth Incentive Program
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
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

Does not have a job requirement

 

For question regarding the Rural Growth Incentive Program, please contact Samantha Mattson, 701-328-7252.

Childcare Loan Program

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.
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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

Robert Lindberg - Bismarck
Secretary/Treasurer
Industrial Technology
and Finance Representative
Laventure

 

Nathan Davis - Belcourt
Executive Director North Dakota Indian Affairs

 

 

 

Lyndsay Ulrickson - Minot
Souris Basin Planning Council

 

 

Gary Goplen - Fargo
Finance
Bank Forward

 

Erik Barner - Fargo
Vice President
Broadwater Capital

 

Joel Brown - Watford City
First International Bank & Trust

 

Jim Albrecht - Wahpeton
President
Manufacturing/Rural
Comdel Innovations

 

 

 

James Leiman - Fargo
Agency
Department of Commerce

 

 

 

Jessica Nygaard - Bismarck
CEO
Department of Commerce