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4/22   Financial Assistance Applications due for May
5/20   Financial Assistance Applications due for June

Programs: Revolving Loan Fund
Grain Silos

The Souris Basin Revolving Loan Fund (SBRLF) was established with grant funds from the U.S. Economic Development Administration Title IX program and from the MAGIC Fund of Minot, ND. The SBRLF 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 goal of the SBRLF is to assist in the creation of permanent private sector jobs. This is accomplished through the promotion of business start-ups and growth by inter-relating with other local, state, federal and private financing sources and technical assistance organizations to promote economic development through economic diversification.

SBRLF has been established to provide loans to qualifying business proposals in all seven counties located in Planning Region II (Bottineau, Burke, McHenry, Mountrail, Pierce, Renville & Ward). These funds have been designated to finance primarily: 1) Industrial or commercial activities, which will operate within the primary sector of the region's economy, particularly those which will process and/or add value to the region's agricultural and natural resource products. 2) Start-up and expansion businesses (i.e., retail, service, manufacturing, telecommunications, and tourism). Priority will be given to businesses which will create jobs for low to moderate income individuals, the long-term unemployed and the underemployed.

Eligible Applicants
Eligible applicants include any private developer, development group, city or county which is actively involved in an economic development project located in Planning Region II when other credit is not available on terms and conditions which will allow for successful completion of the proposed project.

Eligible Loans
Eligible loans include, but are not limited to:
   acquisition and/or improvement of land
   buildings
   equipment, fixtures, and inventory
   limited working capital
 
Application Process & Fees
   Eligible projects submit a pre-application which is reviewed by the SBRLF Review Committee at its regular monthly meeting.
   Approved applicants are requested to submit a full application with a detailed business plan.
   Approved applications are recommended to the SBPC Board of Directors for funding.
   A $200 application fee is due when the full application is submitted. There will be a 1 percent loan application fee due at the loan closing. All closing costs are the responsibility of the applicant.
 
Funding Criteria
   New or expanding private sector businesses resulting in job creation and/or retention.
   Projects proposing only job retention will be considered only if shown that business will close without funding.
   Minimum Loan - $5,000
Maximum Loan - $127,500 or limited to funds available and/or committee discretion.
   Loan Terms:
 Fixed Assets - 10 year maximum
 Equipment - 7 year maximum
 Working Capital - 5 year maximum
   Minimum leverage requirement - 2 dollars private funding for every 1 dollar SBRLF.
   Minimum equity 10%.
   Job/Cost Ratio goal is one job created or retained per $10,000 loaned.
   Documentation that the entire project's capital needs cannot be acquired from other sources.
   Minimum interest rate will be 4 percentage points below the current money center prime rate quoted in the Wall Street Journal, but not less than 4%. The Committee will determine the rate on a project by project basis.
   Must be secured with fixed assets or other reasonable collateral. Personal guarantees are also required.

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