While North Dakota isn’t the most populous state, small businesses play an important role in the local economy. In fact, small businesses represent almost 99% of all businesses within state borders. If you own a business in North Dakota or you’re considering starting one, look through the list below. These funding options are only available to North Dakota-based businesses. Read through to discover if your business is eligible.
Department or Agency: North Dakota Department of Commerce
Loan or Grant title: Innovate ND
Innovate ND is a state-funded voucher program that supports North Dakota entrepreneurs in need of customer and market research. Organized in four phases, each participant must complete each entrepreneurship coaching stage to advance to progressively larger awards. Phases 1 through 3 offer reimbursements for expenses incurred at the Entrepreneurship Center, ranging from $2,000 in Phase 1 to $12,000 in Phase 3. Phase 4 is a grant program up to $20,000, requiring a minimum match of $5,000.
Applications are open for a narrow window, and once funding is depleted, the program closes. Monitor the program website for information about the latest funding round.
Department or Agency: North Dakota Department of Commerce
Loan or Grant title: Legacy Investment for Technology Loan Fund
The Legacy Investment for Technology (LIFT) Fund supports technology advancement by funding the commercialization of intellectual property in the state of North Dakota. Loans are limited to target industries which include advanced computing, agricultural technology, energy, healthcare, and others that are detailed on the program website. Funds can be used for research, experimentation, and operational testing within the state. Approved applicants will work with the Bank of North Dakota to structure loans, which feature 0% interest for the first three years and 2% interest for the next two years.
Department or Agency: North Dakota Department of Commerce
Loan or Grant title: North Dakota Development Fund
The North Dakota Development Fund is a gap financing program for new or established North Dakota businesses. Any “primary sector” business is eligible to apply. Primary sector is defined as any corporation, association, LLC, or partnership owned by a North Dakota resident that primarily does business or production in the state. Owners must have at least a 15% equity stake in the business. The upper funding limit is $3 million, with the average loan being $300,000. Acceptable uses include working capital, fixed asset purchases, real estate or equipment buying, expanding facilities, and purchasing inventory.
Department or Agency: Bank of North Dakota and North Dakota Commerce
Loan or Grant title: Agriculture Diversity and Development Fund
The Agriculture Diversification and Development Fund (ADD) supports new or expanding value-added businesses that show promise of financial feasibility and enable farmers and ranchers to boost their profitability. The program also seeks to create jobs and boost the North Dakota economy. To be eligible, businesses must be majority-owned by North Dakota residents. Permitted projects include food production and processing facilities, feed or pet food processing facilities, commodity processing, agricultural product manufacturers, and animal production facilities. Loans may be used to purchase or lease equipment and to start or expand a value-added agriculture business.
Department or Agency: Bank of North Dakota
Loan or Grant title: Beginning Entrepreneur Loan Guarantee Program
The Beginning Entrepreneur Loan Guarantee Program gives new entrepreneurs loans of up to $500,000 to help with working capital, equipment purchases, property acquisition, or debt consolidation. To qualify, the business owner has to have a net worth of less than $500,000 and be a North Dakota resident.
Department or Agency: Bank of North Dakota
Loan or Grant title: Biofuels PACE Program
The Biofuels PACE Program—which is an interest buydown program—reduces the interest rate on loans for livestock operations and biodiesel, ethanol, or green diesel production facilities. Funds can be used to purchase or construct real property, expand facilities, and purchase or install equipment.
Department or Agency: Bank of North Dakota
Loan or Grant title: Business Development Loan Program
The Business Development Loan Program helps new and existing businesses get approved for loans that financial institutions might typically deem too risky. The maximum loan amount is $1 million, which companies can use to buy a new or existing business, acquire property, remodel or expand, purchase equipment, cover working capital, or refinance an existing loan.
Department or Agency: Bank of North Dakota
Loan or Grant title: Flex PACE Program
The Flex PACE Program gives loans to North Dakota businesses that don’t qualify as primary sector businesses under the PACE program. Loan amounts are flexible, and companies can use the funds to buy property and equipment or cover working capital.
Department or Agency: Bank of North Dakota
Loan or Grant title: PACE Program
The PACE (Partnership in Assisting Community Expansion) Program gives loan funds to primary sector businesses in North Dakota that invest in their communities or create new jobs. Loan amounts are flexible; businesses can use the funds to purchase real property and equipment or cover working capital.
Department or Agency: Bank of North Dakota
Loan or Grant title: Ag PACE Loan
The Ag PACE Loan is an interest buydown program available to farmers or ranchers investing in nontraditional agriculture activities to supplement farm income. To qualify, borrowers have to be North Dakota residents and engaged primarily in nontraditional agriculture, manufacturing, or processing.
Department or Agency: Bank of North Dakota
Loan or Grant title: Beginning Farmer Real Estate Loan
This loan program is available to North Dakota farming businesses that need capital to purchase property or land. To qualify, a borrower has to have a net worth of less than $1.5 million and cannot have previously owned any substantial farmland greater than 30% of the average farm size in the county where their new property is.
Department or Agency: Bank of North Dakota
Loan or Grant title: Established Farmer Real Estate Program
This loan program is designed to support established farmers in buying real estate for agricultural purposes. The maximum loan amount is $6 million. Borrowers must be North Dakota residents to apply.
Department or Agency: Bank of North Dakota
Loan or Grant title: Family Farm Loan Program
The Family Farm Loan Program gives farmers loans to purchase land, equipment, or livestock—or to restructure operating debt. To qualify, borrowers have to be either a North Dakota farmer or rancher with a net worth of less than $1.5 million who’s training to operate a family farm.
Department or Agency: Bank of North Dakota
Loan or Grant title: Farm Operating Loan Program
This loan program helps North Dakota farmers and ranchers get capital to cover their operational costs. To qualify, borrowers have to own or operate an existing North Dakota farm or ranch, have a net worth of less than $1.5 million, and have a debt-to-asset ratio over 50%.
Department or Agency: Bank of North Dakota
Loan or Grant title: Farm Real Estate Loan Guarantee Program
Under this program, farmers in North Dakota can purchase farm real estate or restructure their farm real estate loans. The maximum loan amount is $400,000, of which the Bank of North Dakota can guarantee up to 75%.
Department or Agency: Bank of North Dakota
Loan or Grant title: First Time Farmer Finance Program
The First Time Farmer Finance Program is a tax-exempt bond program that helps new farmers and ranchers in North Dakota acquire agricultural property at low interest rates. To be considered a first-time farmer, someone must be at least 18 years old, a resident of North Dakota, have a net worth of less than $1.5 million, and never have had any ownership interest in the operation of the farmland. The maximum loan amount is $543,800.
Department or Agency: Bank of North Dakota
Loan or Grant title: Envest Loan
The Envest Loan helps businesses buy shares in either an ag processing plant that processes North Dakota products or a feedlot or dairy operation that feeds a byproduct of an ethanol or biodiesel facility. To qualify, businesses can’t own more than 25% of the project.
Department or Agency: Bank of North Dakota
Loan or Grant title: MATCH Program
The MATCH Program provides loan funds to companies in certain industries with strong financials to finance real estate purchases and machinery and equipment. To qualify, companies have to have an “A” long-term investment grade rating.
