• Mar 17, 22
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

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 include, but are not limited to:

• Acquisition and/or improvement of land and building
• Equipment, fixtures, and inventory
• Limited working capital

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. Contact Information Souris Basin Planning Council Address: 925 20th Ave. SW City: Minot State: North Dakota Website: https://www.sourisbasin.org