Financing

Bank of North Dakota (BND) www.banknd.com
A lead lender is required for all of the following BND Programs, and area available statewide.

General Participation Loan Program
This program can be used for any type of business. Proceeds can be used for working capital, equipment, and real property.

Beginning Entrepreneur Loan Program
This borrower must be a North Dakota resident who is a high school graduate and experiences in the type of enterprise in which they are seeking financing. The applicants' net worth must be less than $100,000 excluding the value of their principal residence and one automobile. BND can issue an 85% guarantee on a maximum amount of $100,000. The lending institution must be regulated or funded under the laws of North Dakota or the USA to be eligible.

Business Development Loan Program
This program is designed to assist new and existing businesses. Any type of business is eligible with BND's participation limited to $500,000 maximum per project. BND's participation percentage is negotiated on a loan by loan basis. This program may be used for refinancing. In no case will the local lender's portion be less then 30% of the total loan amount.

Partnership in Assisting Community Expansion (PACE)
The PACE fund is design to assist North Dakota communities in expanding their economic base through new job creation. This program has two major elements: (1) participation by BND with the lender in a community-based loan program, and (2) participation by the PACE fun with the local community in reducing the borrowers overall interest rate. The borrower is required to demonstrate within the year that a minimum of one job is created for every $75,000 of total loan proceeds. PACE is available to manufacturing, processing, data processing, communications and telecommunication business.

Dakota Certified Development Corporation ( DCDC ) http://www.dakotacdc.com
504 Program - This program is intended to create and retain jobs through long term financing of real estate and equipment. Through the DCDC, the US Small Business Administration (SBA) can fund up to 40% of the total project costs, or from $50,000 to $1,000,000 (in some cases $1,300,000). The business receiving the financial

assistance must inject at least 10% of the total funds for any project. The balance, usually 50%, is provided by the local lending institution.

Micro Loan Program
This program is designed to provide financing for start up and micro enterprises that meet basic lending requirements. The maximum load amount of $35,000 and is a direct loan from the SBA Intermediary, Dakota Certified Development Corporation.  The funds can be used for working capitol, inventory, and small equipment. A business plan and other information is required and the borrower is generally required to invest 10% of the loan amount.

IRP Financing
The DCDC is authorized by USA Rural Development to offer direct loan to small businesses across North Dakota. These loans can be provided for community development projects, establishment of new businesses and creation of new jobs or retention of existing jobs. The IRP program is available to businesses located in cities with a population base no greater then 25,000. Loan proceeds can be used for financing a new or existing business, purchasing or leasing of equipment, and working capital. Any type of legal entity including individuals, public or private organizations, government entities can qualify for IRP funding. Borrower must be unable to obtain the proposed loan funds elsewhere at a reasonable rat and 51% of the owners or members must be citizens of the USA.

North Dakota Department of Commerce www.growingnd.com

Development Fund
The North Dakota Development Fund provides financing for primary sector businesses to include value-added agriculture, manufacturing, and export service companies. The fund provides "gap" financing not available from other, more conventional sources. Innovative financing options are available to provide both long and short term capital to new, expanding or relocating businesses. Funds are available for debt financing, equity investment or partnership. The Development Fund can participate in up to 50% of a project. The maximum loan amount is $300,000.

Community Development Block Grant ( CDBG )
The Division of Community Services (DSC) administers the CDBG Small Cities Program for the State of North Dakota. The eight Regional Councils receive an annual allocation and make recommendations for funding projects in their region. These funds are used for public facilities. The CDLF program is designed to assist primary sector and retail sector businesses.

The CDLF program provides "gap" financing for new or expanding businesses. Funds can be used for construction of buildings, acquisition of property, equipment, inventory, working capital and equity investments and loans or grants for infrastructure development. For retail sector businesses the minimum loan amount is $10,000 and the maximum loan amount is $150,000. For a primary sector businesses, the minimum loan amount is $15,000 and the maximum is $500,000.

U.S.D.A Rural Development www.rurdev.usda.gov

Business and Industry Loan Guarantee ( B & I )
And legal entity, including cooperatives, individuals, public and private organizations and federally recognized Indian Tribal groups are eligible for this  loan guarantee program. A lead commercial lender is required and the re is no minimum loan. L oan approval authority is North Dakota is $5,000,000 with loans up to $25,000,000  approved through the National Office .  Guaranteed loans normally are made for 80% of the loan total.  The fee for the guarantee at time of issuance of the loan note guarantee is 2% of the guaranteed portion of the loan, plus there is an annual servicing fee of 1/4% of the guaranteed portion of the loan.  The servicing fee can change annually. All rural areas of North Dakota are eligible except Fargo, West Fargo, Bismarck and Mandan. Funds can be used for working capital, hard asset acquisition, real estate, equipment and limited refinancing.

Value Added  Producer Grant ( VA P G )
Independent agricultural producers  and producer groups are eligible for this program. The maximum funding limit is $ 3 00,000  per grant and applicants must provide matching non-federal funds to equal the grant. Proceeds can be used for a feasibility study, business and marketing plans and working capital.

Renewable Energy System and Energy Efficiency Improvement Grants and Guaranteed Loan Program .
Borrowers can be an individual  farmer or rancher or a rural small business. The minimum grant is $ 2,500 , the maximum renewable energy grant is $500,000 and the maximum energy efficiency improvement grant is $250,000. This program requires a 75% minimum applicant match .  There is also a Guaranteed Loan available with a maximum loan up to $10,000,000.  Funds can be used for purchasing equipment, construction energy audits, feasibility studies, business plans permits/professional services. Available statewide except Bismarck, Mandan, Fargo and West Fargo.  Additional information is available through the USDA Rural Developments in North Dakota and also at http://www.rurdev.usda.gov/rbs/farmbill/index.html

Rural Economic Development Loan & Grant ( REDLG )
This program is for Rural Electric and Telephone Cooperatives to provide a loan for economic development and job creation projects. The maximum RED loan is $ 740,000 and the maximum RED grant is $ 3 00,000 and subject to change annually. Loan proceeds can be used for business startup or expansion projects that create jobs in rural communities. Grants may only be used to establish a revolving loan fund. The loan term is 10 years at 0% interest and priority is given to rural communities with a population of 2,500 or less.

U.S. Small Business Administration ( SBA ) www.sba.gov/nd

7(A) Loan Guaranty
This program is available to any credit-worthy start up or existing business in North Dakota that cannot obtain financing of reasonable terms through normal channels. The maximum loan amount is $ 2 million. The maximum guaranty percentage is 85% for loans up to $150,000 and 75% for loans over that amount. All SBA loan guarantee programs are available statewide and generated through a lead commercial lender.

SBA Express
This program is available to any credit-worthy start up or existing business in North Dakota that cannot obtain financing of reasonable terms through normal channels . The maximum loan amount is $350,000 and the maximum guarantee is 50%. Lenders must be authorized by SBA to make Express Loans based on the bank's own underwriting guidelines and forms. Loans are processed by SBA's Processing Center in Sacramento , CA and have a short turn around time (1-2 working days).

CAPLines
This program is available to fund short term, cyclical working capital needs. The maximum loan amount is $ 2 million and is available in five lines: (1) Seasonal Line (2) Contract Line (3) Builders Line (4) Standard Asset Based Line and (5) Small Asset Based Line. Loan proceeds generally will be advanced against a borrower's anticipated inventory and / or accounts receivable.