Areas Served: Statewide North Dakota
The Beginning Entrepreneur Loan Guarantee Program is offered through the Bank of North Dakota for North Dakota residents, who have graduated from high school or received a general equivalency certificate, and have some training by education or experience in that type of revenue producing enterprise.
The applicant(s) must have a net worth of less than $200,000. This program assists in business start-up financing by providing a financial institution with guaranty of a loan not to exceed $200,000. Guarantee – Bank of North Dakota may provide a loan guaranty based upon the following schedule: Maximum Loan Amount/Maximum Guaranty Percentage Up to $100,000/85% From $100,001 to $150,000/80% From $150,001 to $200,000/75% The maximum loan or loans to an individual borrower may not exceed $200,000. Use of Loan Funds Loan proceeds guaranteed under this program may be used to finance the purchase or improvements of real property, equipment or personal property, or working capital needs.
The Bank may approve a guarantee on a loan up to $5,000 to a beginning entrepreneur for business start-up expenses including accounting, legal and business planning.
The Bank may approve a guarantee on a loan up to $25,000 without requiring collateral for the loan.
The program may be used to refinance or consolidate the originating lender’s debt provided the amount of the refinance or consolidation does not exceed 20% of total loan to be guaranteed.
Term – The guarantee term may not exceed 5 years.
Interest Rate – The originating lender must charge an interest rate acceptable to BND.
The guarantee fee may be included in the loan or in the rate charged by the lender.
Contact InformationBank of North Dakota
Address: 1200 Memorial Hwy
City: Bismarck
State: North Dakota
Website:
http://banknd.nd.gov/lending_services/business_financing_programs/beginning_entrepreneur_loan_guarantee_program.html
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