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 REQUIREMENT |
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.
Accountability Information Release - NDDF