Small business owners aren’t in it alone – Minnkota Power Cooperative along with our partners in government, nonprofits, lenders and other supportive resource providers want to see businesses succeed in North Dakota. We’re here to help connect businesses to the resources they need. For assistance, please contact Melissa Beach at mbeach@minnkota.com or (701) 795-4225.
Our team can help you access a series of programs that can help you grow in North Dakota.
The Rural Economic Development Loan & Grant Program provides funding for rural projects through local utility organizations. USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility is responsible for repayment to USDA.
The Accelerated Growth Loan Program assists North Dakota-based companies entering or anticipating a period of dynamic growth. These companies have a record of proven operations, experienced management and the ability to generate cash flow but have limited assets for traditional bank financing. The borrower can be any person or entity who owns a North Dakota-based company that anticipates a minimum growth in sales of 15% over three years with existing sales of $1.5 million to $10 million annually. BND’s maximum loan participation is $3 million with a maximum term of 10 years. The lead financial institution’s share is a minimum of 10% of the total loan amount and will be negotiated on a case-by-case basis.
The Advanced Biofuel Payment Program provides payments to producers to support and expand production of advanced biofuels refined from sources other than corn kernel starch. The program supports and helps to ensure the expanding production of advanced biofuels by providing payments to eligible advanced biofuel producers. Additional incentive payments may be made to certain producers who have increased their biofuel output over the previous year’s production. Advanced biofuels are produced from renewable biomass crops such as cellulose, sugar and starch (other than ethanol derived from corn kernel starch), hemicelluloses, lignin, waste materials, biogas, butanol, diesel-equivalent fuel, sugarcane and nonfood crops such as poplar trees or switchgrass.
The Ag Commodity Export Enhancement Program is a tool for North Dakota ag commodity exporters to facilitate export sales to foreign buyers. BND works with the Export-Import Bank (Ex-Im) to provide insurance coverage of not less than 90% on bulk commodity sales as well as processed ag product transactions. Eligibility: The applicant must be a North Dakota ag commodity exporter. The export of bulk ag commodities and food-grade, value-added ag products are allowed activities. Ex-Im Bank determines eligibility based on financial strength of the foreign buyer and financial and political stability of the country where the buyer is located. The minimum transaction is $200,000. Interest rate is a floating rate based on a fixed spread over a variable rate index determined by BND’s Investment Committee.
The Agriculture Diversification and Development Fund (ADD) was established to support new or expanding value-added agriculture businesses that demonstrate financial feasibility, enhance profitability for farmers and ranchers, create jobs and grow North Dakota’s economy. The funding opportunities include grants and interest buydowns for value-added agriculture business registered with the North Dakota Secretary of State’s office or a North Dakota resident that diversifies a crop or animal industry and provides collateral uses for agriculture resources. Businesses with a majority ownership comprised of North Dakota residents will have priority over majority non-North Dakota-owned applications. Companies outside North Dakota must have an established relationship with a North Dakota partner which includes individual, company or agency to validate the credibility of the proposal and comply with the intent of the Code. The types of projects may include but are not limited to:
Use:
The mission of APUC is to create new wealth and employment opportunities through the development of new and expanded uses of North Dakota agricultural products. This is accomplished through the administration of a grant program. Applicants can present funding proposals for these grant categories on a quarterly basis: basic and applied research, marketing and utilization, nature based agri-tourism, technical assistance for value-added businesses, farm diversification, agricultural prototype development and agricultural technologies. Please note: Qualifying APUC grants are limited to companies registered with the North Dakota Secretary of State, groups and individuals that add value to North Dakota agriculture.
This program assists with business startup financing by providing a financial institution with loan guaranty not to exceed $500,000. Proceeds may be used to finance:
The Biorefinery Assistance Program was established to assist in the development of new and emerging technologies for the development of advanced biofuels, renewable chemicals and biobased product manufacturing.
Eligible Project:
The purpose of the BIG program is to foster the growth of the bioscience industry in the state. Applicants applying should focus on one or more of the following areas:
The Business and Industry (B&I) Guaranteed Loan Program guarantees loans by eligible local lenders to businesses to benefit rural areas. The primary purpose of this program is to create and maintain employment and improve the economic and environmental climate in rural communities. Eligible loan purposes include: business and industrial acquisitions, purchase of equipment machinery, start-up costs and working capital. All collateral must secure the entire loan. Personal and corporate guarantees are required.
What is an eligible area?
How may funds be used? Eligible uses include but are not limited to:
The Business Development Loan Program through Bank of North Dakota assists new and existing businesses to obtain loans that have a higher degree of risk than would normally be acceptable to a lending institution. It may be used to start or expand a new business or for refinancing. The business must be located in North Dakota. The financial condition or the nature of the industry must lead to a higher credit risk than would normally be acceptable to a lending institution.
EDA provides strategic investments that foster job creation and attract private investment to support development in economically distressed areas of the United States. EDA solicits applications from both rural and urban areas to provide investments that support construction, non-construction, technical assistance, and revolving loan fund projects under EDA’s Public Works and Economic Adjustment Assistance programs. Grants made under these programs are designed to leverage existing regional assets to support the implementation of economic development strategies that advance new ideas and creative approaches to advance economic prosperity in distressed communities.
Eligible applicants include: State, county and city governments; private, public and state controlled institutions of higher education; Native American tribal governments; nonprofits; and others. EDA is not authorized to provide grants directly to individuals or to for-profit entities seeking to start or expand a private business. Such requests may be referred to State or local agencies, or to nonprofit economic development organizations serving the region in which the project will be located.
The Export Enhancement Program is a financing tool for foreign buyers purchasing equipment from North Dakota manufacturers. Loans are made by the Bank of North Dakota and are guaranteed by the Export-Import Bank of the United States utilizing their medium-term credits program. Community financial institutions may participate in the loans.
Flex PACE allows communities the ability to aid businesses that do not meet the primary sector definition of PACE. In addition to this program, specific Flex PACE options have been developed for childcare facilities and affordable housing projects. No job creation is required for any Flex PACE Program options. The Flex PACE Fund combines the resources of the local community and the PACE Fund to buy down the interest rate on the loan. The maximum buydown is $500,000/biennium/borrower.
The borrower can be any person or entity whose business is located in the state of North Dakota. The community in which the business is located will determine if the objectives of the business meet the needs of the community and to what extent they will provide the matching portion of the buydown funds required to access this program.
Innovate North Dakota is a voucher reimbursement program to help North Dakota entrepreneurs further their business by supporting customer and market research. Through expert guidance from business coaches at Entrepreneurial Centers, Innovate ND provides the entrepreneurial community of North Dakota the resources needed to help turn an innovative idea into a profitable business.
Program goals:
There are four Entrepreneur Centers across North Dakota:
The Innovation Technology Loan Fund (LIFT) program supports technology advancement by providing financing for commercialization of intellectual property within the State of North Dakota. This fund is administered by the North Dakota Department of Commerce in conjunction with Bank of North Dakota to fund applied research, experimentation or operational testing within the target diversification sectors within the state.
Diversification Sectors:
The Bank of North Dakota establishes terms and conditions of the loan.
North Dakota's Lignite Research, Development and Marketing Program is a multimillion-dollar state/industry partnership that concentrates on near-term, practical research and development projects that provide the opportunity to preserve and enhance development of the state's abundant lignite resources. The Program is funded from several sources including the coal severance tax, coal conversion tax and Strategic Investment and Improvements Fund with approximately $7.5 million available each year for the Research, Development and Marketing Program.
The Technical Skills Training Grant is designed to support eligible training providers in their efforts to design rapid, non-degree re-skilling programs, expand capacity in existing programs and/or move training to virtual platforms.
The North Dakota Regional Workforce Impact Program (RWIP) provides grants to regional workforce entities in North Dakota to design and implement innovative plans to address their region's most demanding workforce challenges.
The Candidate Marketplace is a crucial piece of North Dakota's "Find the Good Life" talent attraction initiative that gets employers directly connected to candidates.
Operation Intern is designed to expand the number of internships, work experience and apprenticeship positions with North Dakota employers.
The Tribal College Grant Program was established during the 2013 Legislative Session to provide funding to the five tribally controlled community colleges for workforce training and entrepreneurial assistance.
Transitioning military personnel and veterans will find endless opportunities in North Dakota.
Apprentices work and train from day one, which helps employers address two problems at once: shortage of skilled workers and the ongoing need for a highly skilled workforce.
The purpose of this workforce solution strategy is to evaluate and demonstrate the effectiveness of relocation assistance in filling critical roles in the North Dakota workforce.
We partner not only with businesses but also with cities, counties and economic development authorities to ensure public infrastructure is supporting our communities, including:
The Legacy Infrastructure Loan Fund was established by the 67th Legislative Assembly enabling the use of the Legacy Fund principal to provide low-interest loans to political subdivisions. BND will utilize the Legacy Infrastructure Loan Fund to provide liquidity for the BND Infrastructure Revolving Loan Fund or the Water Infrastructure Revolving Loan Fund.
The North Dakota LRFA loan program makes available reduced-interest loans, primarily for infrastructure projects on short line railroads. The funds have retained their federal identity. The program was created to keep the state rail assistance funds from being depleted and to provide railroads with an alternative to commercial lending sources. The low interest rate and 10-year repayment period help improve railroad cash flow. The LRFA loan fund retains the principal from repaid loans, plus the interest the LRFA account itself bears. A second revolving loan fund, called the Freight Rail Improvement Program (FRIP) fund, uses interest from repaid LRFA loans as a funding source. FRIP is similar in purpose to LRFA, but the funds are state funds and there is more latitude allowed in their use. FRIP is funded with interest from repaid LRFA loans, principal and interest from repaid FRIP loans, and the interest the account itself bears. Three potential purposes or uses of federal financial assistance to states under LRFA include:
