North Dakota Development Fund

Medium

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		INVESTEE Any primary sector business
FUNDING LIMIT Up to $3,000,000 Target investment amount of 25% of total project.		FUNDING LIMIT Up to $3,000,000 Target investment of 25% or less of the round being raised.
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 REQUIREMENT 15%		LEADERSHIP INTEREST Leadership needs to have a meaningful financial interest in the success of the company.
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 approved investment plus any legal fees incurred by NDDF.

DEBT:

EQUITY:

BORROWER

Any primary sector business

INVESTEE

Any primary sector business

FUNDING LIMIT

Up to $3,000,000
Target investment amount of 25% of total project.

FUNDING LIMIT

Up to $3,000,000
Target investment of 25% or less of the round being raised.

INTEREST RATE

Subject to risk of project