North Dakota Development Fund, Inc.

Medium

The NDDF provides flexible gap financing to new or expanding primary sector businesses in North Dakota. Funds are available through direct loans, participation loans, subordinated debt and equity investments.

Use of funds: The NDDF 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 Loan: $300,000	FUNDING LIMIT	Up to $3,000,000 Average convertible note: $250,000
INTEREST RATE	Subject to risk of project	RATE OF RETURN	In cases of a preferred security or convertible note: Interest/Dividend Rate: Subject to risk of project
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.