Finance Programs
Both states offer plenty of financing options to support your venture.
Growth Initiative Fund
The Growth Initiative Fund (GIF) is a revolving loan fund managed and administered by the GFMEDC. While the primary function has been serving as the community portion of the PACE & Flex PACE program with Cass County, ND (see Bank of North Dakota section below), a portion of the GIF’s funds are available for projects targeted at the emerging sectors identified in GFMEDC’s strategic objectives. Projects will be considered on a case-by-case basis.
Information on the PACE/Flex PACE and microloan programs can be found below. The funding partners program can be explored with GFMEDC for projects that involve additional funding partners (such as ND Development Fund, Bank of North Dakota, etc.) and there are remaining financing gaps to be addressed.
Other Programs
Depending on factors such as geography, population, industry, project type, etc., there may be other programs to consider such as those associated with the SBA, USDA, bond financing, etc. GFMEDC staff may suggest these programs as your particular project is evaluated.
North Dakota Opportunity Fund
The ND Opportunity Fund leverages private financing to help small businesses and manufacturers attain the loans and investments needed to expand and create jobs. A consortium of 38 municipalities across North Dakota has received funding for operating the loan participation program. The municipalities in Cass County are Casselton, Fargo and West Fargo. Loan funds can be used for construction, equipment, working capital, real estate and interim SBA 504 loans. Loan proceeds will not exceed $1 million and must not exceed more than 50% of the proposed project costs. This fund is typically used as a gap financing tool to lower the borrower equity portion and/or the lead lender’s total loan exposure. They also recently added a Collateral Support Program, which establishes pledged case collateral accounts with lenders to enhance loan collateral. The programs are administered by Lewis & Clark Development Group.
New Market Tax Credits (NMTC)
NMTC works to encourage and jumpstart investment in low income census tracts to create jobs and bring new opportunities to qualifying areas.
The goal of a NMTC award is to fill a financing gap for transformative projects which bring opportunities to qualifying areas. The program helps create capital that allows the lending partner to make loans and investments to businesses operating in low-income tracts that generally have better rates and terms and more flexible features than the market.
Please note that NMTC are administered by an approved NMTC lending partner. Each partner may have their own specific goals for types of projects, industries, communities, etc.. Dakota Business Lending is a local example, having been awarded $30 million in 2021. Please contact Ryan at the EDC, (701)364-1919 for more information.
Projects located in qualifying census tracts are eligible for NMTC. You can access an interactive map of buildings and sites in the qualifying zones below: