Purpose
The purpose of the Community Development Loan Fund (CDLF) program is to provide gap financing and equity investments that will create or save jobs for low and moderate income persons.
Capitalization
Funds are distributed annually to the region from the state's allocation of Community Development Block Grant (CDBG) monies that come from the Department of Housing and Urban Development (HUD) and from principal and interest payments made by past borrowers.
Eligible Applicants
All cities and counties within the Souric Basin Planning Council (SBPC) planning region are eligible. Governmental units receive HUD funds from the North Dakota North Dakota Division of Community Services (DCS), then loan the money to the business creating or saving jobs.
| Policies/Terms |
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Loans Limits:
Retail Businesses: $10,000 - $150,000
Primary Sector Businesses: $15,000 - $500,000 |
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Match: $1 for each $1 CDLF |
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Equity: At least 10% |
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Collateral: Required |
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Lien Position: First, second or shared second |
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Maximum Term Lengths:
Fixed Assets: up to 25 years (case by case basis)
Equipment: 10 years
Inventory: 5 years
Working Capital: 2 years as a guarantee |
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Interest Rate: Negotiable |
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At least 51% of jobs created or retained must benefit LMI persons |
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Other: Personal guarantees, life insurance and other conditions may be required. Refinancing is ineligible. |
| Process |
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Project eligibility review conducted by SPBC staff. |
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Eligible projects submit a Notice of Intent which is reviewed by the Souris Basin Revolving Loan Fund (SBRLF) Review Committee at its regular monthly meeting. |
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Approved applicants are requested to submit a full application with a detailed business plan. |
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Approved applications are forwarded to DCS for eligibility review and award. |
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