The Souris Basin Intermediary Relending Program (SBIRP) was established with a long-term low interest loan from the United States Department of Agriculture - Rural Development and an equity grant from the MAGIC Fund of Minot, ND. The SBIRP is not intended to duplicate or replace the capacity of banks or other lending organizations, nor will the fund be managed with the same objectives as conventional financing.
The goals of the SBIRP are to provide for the creation and retention of permanent private sector jobs, expand the area's economic base and enable local governments to improve infrastructure and public facilities to maintain and improve the quality of life.
The SBIRP has been established to provide loans for business development and a variety of community development activities in all seven counties located in ND Planning Region II (Bottineau, Burke, McHenry, Mountrail, Pierce, Renville & Ward) outside of cities with a population of 25,000 or more.
Eligible Applicants
Eligible applicants include any private developer, development group, or political subdivision, which is actively involved in economic and/or community development projects located in ND Planning Region II. Projects located within the corporate boundaries of a city with a population over 25,000 are not eligible.
| Eligible Loans |
| Eligible loans include, but are not limited to: |
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business acquisitions, construction, conversion, enlargement, repair, modernization, or development cost |
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purchasing and development of land, building facilities, leases, or materials |
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purchasing of equipment, leasehold improvements, machinery or supplies |
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startup operating costs and working capital |
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interest (including interest on interim financing) during the period before the facility becomes income producing, but not to exceed three years |
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feasibility studies and reasonable professional fees |
Application Process
There is a two-step process involved in submitting applications to the SBIRP; first there is a pre-application that is reviewed by the SBIRP Committee. If the proposal warrants further consideration, the second step is a final application, which requires more detailed information. The final application is then approved or denied by the Committee.
After approval from the SBIRP Committee, the project is submitted to the SBPC Board of Directors for final consideration. If approved, the final application is forwarded to USDA - Rural Development for compliance review. The SBPC staff is available to assist with technical assistance through all phases of the application process.
A two hundred dollar ($200) application fee is due when the full application is submitted. There will be a 1.5 percent loan origination fee due at the loan closing. All closing costs are the responsibility of the applicant.
| Funding Criteria |
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Community development and infrastructure. |
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New or expanding businesses resulting in job creation and/or retention. |
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Projects proposing job retention will be considered only if shown that the business will close without funding. |
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Maximum Loan* - $150,000
Minimum Loan - $10,000
*Subject to availability and/or committee discretion
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Interest rate will be set by the SBIRP Committee with a four percent (4%) minimum. |
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Minimum leverage requirement of $1 non-federal funding for every $1 SBIRP. |
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Minimum Equity 10%. |
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At least 30% of jobs created must be filled by individuals with incomes below the poverty level. |
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Certification that a loan for the purposes applied for is not available from private sources or other Federal, State or local programs at reasonable rates and terms. |
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Must be secured with fixed assets or other reasonable collateral. First lien or shared first lien position. |
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Principal payments may be deferred up to one year with adequate need demonstration. |
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