© 2019 Souris Basin Planning Council

Souris Basin Planning Council is an equal opportunity provider and employer.

Business Financing

Souris Basin Planning Council offers a variety of financial resources to suite your needs. Our goal is to enhance the creation and expansion of businesses within our region. These financial tools were established to assist in the creation of permanent, private sector jobs. The financial resources offered by SBPC are not intended to duplicate or replace the capacity of lending organizations, nor are the funds managed with the same objectives as conventional financing. Eligible applicants include private developers, development groups, political subdivisions and businesses located in North Dakota Region 2. SBPC staff is available to provide technical assistance through the application process.

 
Revolving Loan Fund



The goal of the Souris Basin Revolving Loan Fund (RLF) is to assist in the creation of permanent private sector jobs. 

 

The Souris Basin RLF has been established to provide low-interest loans to qualifying businesses located in North Dakota Region 2. These funds have been designated to primarily finance the following project types:

 

  • industrial or commercial activities operating within the primary sector of the region's economy

  • start-up and expanding businesses (i.e. retail, service, manufacturing, telecommunications, tourism, etc.)

 

Priority will be given to businesses creating jobs for low to moderate income individuals, the long-term unemployed and the underemployed.

 

Applicants must submit a completed Financial Assistance Application, located in our Documents Center to be reviewed by the SBPC Loan Review Committee at its regularly scheduled monthly meeting.

 

Eligible loans include, but are not limited to:

  • acquisition and/or improvement of land

  • real estate

  • equipment, fixtures and inventory

  • working capital

 

A $200 application fee is due when the application is submitted. A 1.5 percent (1.5%) loan fee is due at the time of loan closing. All closing costs are the responsibility of the applicant.

 

Funding Criteria:

  • Minimum funding: $5,000

  • Maximum funding: $127,500

  • Interest rates are determined on a project-by-project basis, and is no less than 4 percent (4%)

  • Must be secured with fixed assets or other reasonable collateral. Personal guarantees are required.

  • Funding terms: 

    • Fixed assets: 10 year maximum

    • Equipment: 7 year maximum

    • Working capital: 5 year maximum

  • Minimum 10 percent (10%) equity

Intermediary Relending Program



The goals of the Souris Basin Intermediary Relending Program (IRP) are to enable local governments to improve infrastructure and public facilities to maintain and improve quality of life, and to expand the area's economic base.

 

The Souris Basin IRP has been established to provide loans for business development and a variety of community development activities for cities with a population less than 50,000, located in North Dakota Region 2. Projects located within the corporate boundaries of a city with a population over 25,000 are not eligible.

 

Applicants must submit a completed Financial Assistance Application, located in our Documents Center to be reviewed by the SBPC Loan Review Committee at its regularly scheduled monthly meeting.

 

Eligible loans include, but are not limited to:

  • business acquisitions, construction, conversion, enlargement, repair, modernization, or development costs

  • purchase and development of land, building facilities, leases, or materials

  • equipment, leasehold improvements, machinery or supplies

  • startup operating costs and working capital

  • interest (including interest on interim financing) during the period before the facility produces income, but not to exceed 3 years

  • feasibility studies and reasonable professional fees

 

A $200 application fee is due when the application is submitted. A 1.5 percent (1.5%) loan fee is due at the time of loan closing. all closing costs are the responsibility of the applicant.

 

Funding Criteria:

  • Minimum funding: $10,000

  • Maximum funding: $250,000

  • Interest rates are determined on a project-by-project basis, and is no less than 4 percent (4%)

  • Must be secured with fixed assets or other reasonable collateral.

  • First lien or shared first lien position.

  • Minimum 10 percent (10%) equity

Community Development Loan Fund



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.

 

Eligible applicants include cities and counties located in North Dakota Region 2. These units of government receive Housing and Urban Development (HUD) funds from the North Dakota Department of Commerce, Division of Community Services (DCS), then lend the funds to businesses.

 

Applicants must submit a pre-application. Project eligibility will be reviewed by SBPC staff. Eligible projects must then submit a Notice of Intent, which is reviewed by the SBPC Loan Review Committee at its regularly scheduled meeting. Approved applicants will be required to submit a full final application and detailed business plan. Approved applications will be forwarded to the North Dakota Department of Commerce, Division of Community Service for review and award.

 

Funding Criteria:

  • Retail Businesses

    • Minimum funding: $10,000

    • Maximum funding: $150,000

  • Primary Sector Businesses

    • Minimum funding: $15,000

    • Maximum funding: $500,000 

  • Minimum 10 percent (10%) equity

  • Funding terms:

    • Working Capital: 2 year maximum

    • Inventory: 5 year maximum

    • Equipment: 10 years maximum

    • Fixed Assets: up to 25 years

  • Lien Position: First, second or shared second

  • Interest rates are determined on a project-by-project basis

  • A minimum of 51 percent of jobs created or retained must benefit qualifying LMI individuals

  • Match requirements: 50/50