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: |
|
| 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. | |
| 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 |
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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.