Revolving and Bridge Loan Funds
Revolving Loan Fund
Loan terms:
- Loan amounts: Up to $25,000.
- Interest rate: 2%.
- Repayment term: Maximum of 60 months.
- 50% project cost requirement.
- Personal guarantee.
- UCC filing for loans over $10,000.
Eligible Borrowers:
- Businesses located in Dunn County.
- Projects must demonstrate a significant impact on the community and the region.
- Must employ 1-10 people or be a new venture.
Eligible Use of Funds:
- Business start-up or expansion costs.
- Purchase of real estate.
- Equipment purchases.
- Working capital.
Standard Terms:
The loan committee and the applicant will determine loan terms and start dates based on the project's specifics.
Approval Process:
- A completed application and documentation demonstrating the borrower’s ability to meet the loan’s terms and conditions are required.
- All applications will be reviewed and approved by the Loan Committee.
Special Considerations:
- A security agreement will secure loans, and the borrower must provide a personal guarantee.
- Applicants must demonstrate a clear understanding of the project’s market area, sustainability, and regional impact.
Bridge Loan Fund
Loan terms:
- Loan amounts: Up to $150,000.
- Interest rate: +/- 2% of the Bank of North Dakota Prime Rate.
- Repayment term: 7-10 years.
- Varying degrees of participation based on job development, priority level, and project impact.
- Security agreement required.
- Personal guarantee(s) required.
- Collateral may be required.
Eligible Borrowers:
- Businesses with a lead lender in place and seeking additional financing.
- Businesses located in Dunn County.
- Projects must demonstrate a significant impact on the community and the region.
- Must employ 1-10 employees or be a new venture.
Eligible Use of Funds:
The Bridge Loan Fund can be used to finance major business projects, including:
- Business expansions.
- Equipment and real estate purchases.
- Large-scale developments that create jobs or have a significant community impact.
Standard Terms:
The loan committee and the applicant will determine loan terms and start dates based on the project's specifics.
Approval Process:
- A completed application and documentation demonstrating the borrower’s ability to meet the loan’s terms and conditions are required.
- All applications will be reviewed by the Loan Committee, which will make recommendations to the Dunn County JDA Full Board.
- Loans exceeding $100,000 require full board approval.
- The committee will determine loan terms, interest rates, and start dates in collaboration with the borrower.
Special Considerations:
- A security agreement will secure loans, and the borrower must provide a personal guarantee.
- Applicants must demonstrate a clear understanding of the project’s market area, sustainability, and regional impact.
APPLICATION