The North Dakota Development Fund's Advance ND awards "deal-closing" low interest loans to companies considering a new industrial project in North Dakota. To qualify, the company must be considering another state in the site selection process. Advance ND will serve as a financial incentive for those companies whose projects would contribute significant capital investment, add value to North Dakota resources, and provide new employment opportunities to the state's economy.
*Industrial Projects include value added energy, value added agriculture, and manufacturing projects.
Companies are eligible for up to $10,000,000 through the program. Award amounts are based on projects' total expected cost. The funding amount will also be based on the incentive package offered from the competing site(s).
The interest rate on the loan is initially set at WSJ Prime +_% (based on risk of project). The interest rate will be retroactively lowered to 2% once the project has begun to produce revenue.
If the project in ND is abandoned prior to becoming operational, the loan will be called due and continue to accrue interest until all outstanding balances are paid in full.
Use of funds: The Advance ND funds can be used for working capital, permitting costs, engineering, and equipment. The funds cannot be used to refinance existing debt.
| Advance ND | |
| BORROWER |
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| FUNDING LIMIT |
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| TYPE | Interest-only loan |
| INTEREST RATE |
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| TERM | 1-10 years, dependent on timeline to operations |
| PAYMENT | Interest only monthly |
| PERSONAL/CORPORATE GUARANTEES |
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| SECURITY | All business assets |
| COST AND FEES | 1% of capital deployed 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 Jessica Tooke.
For question regarding Advance ND, please contact Jessica Tooke, 701-328-5310.
Accountability Information Release - NDDF