The North Dakota Department of Commerce announced today that an approximate total of $13.6 million of equity and venture funds will soon be available to early-stage North Dakota businesses through the recently launched Angel Match Program (AMP), a direct investment program administered by the North Dakota Development Fund (NDDF). Applications for the AMP begin Dec. 9.
The AMP was created to expand access to capital for underserved communities by focusing outreach, technical assistance, and capital investment in rural communities, tribal communities, and communities undergoing economic transitions such as coal communities.
“The Angel Match Program will serve as a vital tool in encouraging entrepreneurship and empowering early-stage North Dakota businesses by providing access to the capital needed to set a solid foundation for business endeavors,” Commerce Commissioner Josh Teigen said. ”We are excited to begin this new opportunity and are confident that we will see many positive economic outcomes from this program in the coming years.”
Through the direct investment program, private investor investments in eligible business can be matched up to a maximum $250,000 per business. Businesses may only apply for funds if the total financing round is $2 million or less. Investors may be individuals, LLCs, businesses, trusts, or an investment fund. Investors must be in, and remain in, compliance with state and federal securities laws, and invest only in qualified businesses that are issuing securities in compliance with state and federal securities laws
To be eligible, a business must:
- Be registered with the North Dakota Secretary of State.
- Be certified as a primary sector business through the North Dakota Department of Commerce.
- Be headquartered in North Dakota and remain headquartered in North Dakota for as long as the State Small Business Credit Initiative capital is at risk.
- Have fewer than 250 employees at the time of investment.
- Not have a principal of the business that has been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C. § 16911).
Funds for the AMP were provided through the U.S. Department of Treasury State Small Business Credit Initiative (SSBCI). An approximate total of $58.6 million of SSBCI funds were allocated to the State of North Dakota for two equity and venture programs, the AMP and the Direct Investment Program. Both programs are direct investment programs that will provide equity support directly to small businesses and startups by co-investing alongside private investors. The Direct Investment Program is under final review and an announcement will be made once the program’s details are finalized.
The North Dakota Development Fund was created in 1991 as an economic development tool. It provides flexible funding through debt and equity investments for new or expanding North Dakota primary sector businesses. The fund also manages the Child Care Loan Program created by the North Dakota Legislature in 2009.
More information about the NDDF and the AMP can be found at belegendary.link/North-Dakota-Development-Fund.
The North Dakota Department of Commerce works to improve the quality of life for North Dakota citizens by leading efforts to attract, retain and expand wealth. Commerce serves businesses and communities statewide through committed people and partners who offer valuable programs and dynamic services.
For more North Dakota news and information, go to www.NDCommerce.com.