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Financing
The Valley Development Group has an outstanding success rate in assembling financial packages that meet the individual needs of a company. Contact us and we can help you access the funds and incentives that are right for your business.
City sales tax and county mill levy provide funds to primary sector businesses for equipment, real estate, working capital, job training costs, relocation or other special needs.
Tax Increment Financing:
Future additional property taxes generated by improved property are used to finance the write-downs of the cost of real estate acquisition and improvements (infrastructure, site preparation costs, rail siding, etc.) throughout the city.
South Central Revolving Loan Fund:
Gap financing based on the number of jobs created or retained ranges from $2,500 to $130,000, limited to one-third of the total project investment. Interest rates are around 6%.
Intermediary Relending Program
Direct and indirect loans are available to any business. These loans can fund up to 100% of project costs contingent upon availability of funds.
Community Development Loan Fund:
Loan amounts are based on the number of jobs created or retained and provide favorable terms including lower interest rates (4% - 6%) and deferment of principal payments. Loan funds can be utilized for 50% of the total project investment.
North Dakota is a great state for establishing or expanding your business. Your business matters here, and our quick, quality service and simple access to funding programs prove it.
North Dakota Small Business Investment Company:
The Small Business Investment Company (SBIC), a statewide venture capital fund capitalized through private sector investments, provides funds that can be used as equity, loans and guarantees.
North Dakota SBIC, L.P.
John G. Cosgriff, Manager
51 Broadway, Suite 400
Fargo, ND 58102
Phone: (701) 298-0003
Fax: (701) 293-7819
North Dakota Department of Commerce:
The North Dakota Department of Commerce provides funding through a collaborative effort between federal, state and private-sector resources. Through a coordinated plan, partnering entities deliver convenient access to over 15 financial assistance programs.
Financing and Incentives from North Dakota Department of Commerce
Bank of North Dakota:
The Bank of North Dakota administers several lending programs, on behalf of the state, that promote agricultural and economic development. Economic development is the primary focus of the Bank of North Dakota, and they’re authorized to assist other financial institutions in providing financing as well.
Lending services from Bank of North Dakota
Other Financing Options from the State of North Dakota:
Valley Development Group can also help in accessing other financing for your business, including Export-Import Bank Working Capital Guarantees, Export-Import Bank Medium and Long-Term Loans and Export Credit Insurance.
Combine the financing from Valley City and North Dakota with assistance available from the federal government.
Small Business Administration Loan Programs:
SBA loans commonly accessed by Valley City businesses include the SBA 504 Certified Development Company Program, SBA 7(a) Loan Guarantee Program, LowDoc or Low Documentation Loan Program, CAPLines or Short-Term Loans and Revolving Lines of Credit. Other SBA Programs available include FA$TRAK, Specialized 7(A) Loans, Minority & Women’s Prequalification Loan Programs, 7(M) Loan Program, DELTA and Export Working Capital Program. For details, visit the Small Business Administration.
Economic Development Administration Grant:
Grant funds are awarded to communities for infrastructure; funds are limited to 80% of the cost of the project.
Economic Development Administration Guarantee Program:
This program provides guarantees up to 80% of the principal and interest on loans to businesses in designated areas of high unemployment or low income.
Rural Economic and Community Development Loan Program:
This program guarantees loans for businesses in rural areas that create and maintain employment and improve the economic climate of the rural community. This program is designed for loans in the $1 - $15 million range.
REA (Rural Electric Administration) Cushion of Credit:
REA, through its local cooperatives, offers a “cushion of credit” which is a ten-year, zero interest loan. Proceeds can be utilized for equipment, real estate and working capital. This program is designed for loans up to $400,000.
