Community Development Loan Fund (CDLF)
The
Community Development Loan Fund (CDLF) was established to provide gap financing
and equity investment for projects that will create or retain jobs for low to
moderate income persons.
To be eligible a business must be located in Region III. A Request for Financial Assistance pre-application must be submitted to North Central Planning Council which will be evaluated by NCPC staff and presented to the Loan Review committee. Approved projects will complete a final application which is forwarded to the North Dakota Department of Commerce Division of Community Services for final approval and financial award.
Funding is made available by Housing and Urban Development (HUD) through the ND DOC Division of Community Services.
Goals:
To be eligible a business must be located in Region III. A Request for Financial Assistance pre-application must be submitted to North Central Planning Council which will be evaluated by NCPC staff and presented to the Loan Review committee. Approved projects will complete a final application which is forwarded to the North Dakota Department of Commerce Division of Community Services for final approval and financial award.
Funding is made available by Housing and Urban Development (HUD) through the ND DOC Division of Community Services.
Goals:
- Job Creation
- Value added manufacturing activities
- Diversification
- Retention and expansion of existing business
- Use of vacant buildings/facilities
- Retail Sector: Minimum loan $10,000, Maximum loan $300,000
- Primary Sector: Minimum loan $50,000, Maximum loan $500,000
- Equity requirement of 10%
- Match requirement is 1:1
- Term Limits: Building and Real Estate - 25 years, Equipment and Machinery - 10 years, Inventory and Working Capital - 5 years
- Lien Position: Acceptable positions are a first, second or shared second
- Interest rates are determined at the time of approval
- Projects are based on job creation/retention and must have a 51% minimum LMI benefit
Revolving Loan Fund (RLF)
North Central Planning Council has established a revolving
loan fund to meet the economic development needs of Benson, Cavalier, Eddy, Ramsey, Rolette and Towner Counties.
The objectives of the Revolving Loan Fund include:
Applicants need to complete the NCPC Request for Financial Assistance with the documents listed on the application checklist. Once all the items are submitted the application will be reviewed by the NCPC Loan Committee at a regularly scheduled meeting.
Eligible applicants are private developers, development groups or cities or counties taking an active role in an economic development project within the counties of Region III.
Eligible activities are, but not limited to:
The objectives of the Revolving Loan Fund include:
- Creation of permanent jobs
- Economic Diversification
- Leveraging of private and local investments
- Benefits to the county, region and state economy
- Assistance to disaster impacted businesses
Applicants need to complete the NCPC Request for Financial Assistance with the documents listed on the application checklist. Once all the items are submitted the application will be reviewed by the NCPC Loan Committee at a regularly scheduled meeting.
Eligible applicants are private developers, development groups or cities or counties taking an active role in an economic development project within the counties of Region III.
Eligible activities are, but not limited to:
- Acquisition of real property
- Constructions
- Reconstruction
- Rehabilitation
- Site improvements
- Equipment, fixtures and inventory
- Operating capital
- Minimum loan amount $5,000, Maximum loan amount $150,000
- The RLF shall not participate as the lead lender and the loan amount shall not exceed 45% of the total project
- Interest rates are fixed over the life of the loan; however lending rates may vary depending on the type of the loan
- Term limits: Building and Real Estate - 20 years, Equipment and Machinery - 10 years, Inventory and Working Capital - 5 years
- A minimum of 10% developer equity is required for each project
- Adequate collateral must be pledged for the loan with no less than a second position
- A personal guarantee is required on each loan
- Loan amounts of $5,000-$10,000: $50.00 fee
- $10,001-$150,000: 0.5% of loan up to a $750.00 maximum
