Application period is closed!
The Legacy Investment for Technology Loan Fund (LIFT) has exhausted its $10M appropriation for the 2023-25 biennium and is not accepting applications at this time. Please check back in June 2025.
The Legacy Investment for Technology Loan Fund (LIFT) is an innovation loan fund that supports technology advancement by providing financing for commercialization of intellectual property within the state of North Dakota. The following industries qualify for these funds:
- Advanced computing and data management
- Agriculture technology
- Autonomous and unmanned vehicles and related technologies
- Energy
- Health care
- Value-added agriculture
- Value-added energy
- Any industry or area specifically identified by the committee as an industry that will contribute to the diversification of the state’s economy.
The use of the loan funds are available to enhance capacity and to the extent possible, leverage state, federal and private sources of funding. Loan funds may be used to conduct applied research, experimentation, or operational testing within the state. Loan funds may not be used for capital or building investments or for academic research, academic or instructive programming, workforce training, administrative costs, or to supplant funding for regular operations of institutions of higher education.
Approval for the LIFT fund applications shall be made by the LIFT Fund Committee with consideration given to the following:
- Deliver applied research, experimentation or operational testing in one or more of the diversification sectors to create information or data to enhance North Dakota companies or industries or companies making investments in North Dakota.
- Lead to the commercialization or patent of an innovation technology solution, or
- Result in the development of a new company or expansion of an existing company that will diversify the state’s economy through new products, investment, or skilled jobs.
Two important factors the committee looks at to validate the intellectual property being developed are customer traction and private capital invested in the company.
If approved, the applicant will work with the Bank of North Dakota to structure and establish the loan and access the funds. The Bank of North Dakota establishes terms and conditions of the loan.
- Zero percent interest and no required payments for the first three years of the loan
- Two percent interest, with monthly interest payments, for the next two years of the loan; and
- All principal due at maturity, at the end of five years. Upon approval by the Bank of North Dakota, the loan may be refinanced at the beginning of year six, at an interest rate equal to a standard Bank of North Dakota loan for all subsequent years.
The applicant determines the dollar amount they request from the LIFT Fund. Tips to consider:
- The award is a loan administered by the Bank of North Dakota with all principal due at maturity, at the end of five years. The company’s financial projections need to support the company’s ability to repay the loan within the five-year term.
- The average award amount is between $250,00 and $500,000 per applicant. On rare occasions, awards have been higher where the applicant is a startup and clearly demonstrated their market traction through customer validation or outside capital investment or the applicant is an established business with a healthy balance sheet.
- In cases where the committee awards the applicant less than the requested amount, the applicant must show they can secure the shortfall before the Bank of North Dakota will release the LIFT funds.
- Example: The applicant requests $500,000 from the LIFT Fund. The committee awards the applicant $300,000. The applicant must show they have secured the shortfall of $200,000 from another funding source prior to the LIFT funds being released.
- Example: The applicant requests $500,000 from the LIFT Fund. The committee awards the applicant $300,000. The applicant must show they have secured the shortfall of $200,000 from another funding source prior to the LIFT funds being released.
- The LIFT Committee may at its discretion apply contingencies to a loan award.
More information can be found by visiting N.D.C.C. Chapter 6-09.18.
For more information on the Legacy Investment for Technology Loan Fund, contact Carla Valentine.