Accelerated Growth Loan Program
The Accelerated Growth Loan Program assists North Dakota-based technology companies with solid operations, good management and strong cash flow that are positioned for a period of accelerated growth or can show consistent monthly revenues above $50,000. These companies normally have limited assets to qualify for traditional bank financing.
The borrower can be any person or entity who owns a North Dakota-based technology company with solid operations, good management and strong cash flow that is positioned for accelerated growth but has limited assets for normal bank financing. Eligibility includes:
- Strong prospects for growth that could include purchase orders for merchandise or services. The company must show through its application that the prospect for sales growth is 15% or greater over the three-year period following the inception of the loan.
- A demonstrated sales record with minimum monthly recurring revenues of $50,000 per month. Software as a Service (SaaS) companies must have a minimum net annual revenue retention rate of 85%.
Proceeds shall be used to:
- Finance the acquisition of real property
- Remodel or expand an existing business if owner-occupied
- Purchase equipment
- Provide working capital
- Refinance an existing loan with a maximum amount that may not exceed 30 percent of the new loan
BND’s maximum loan amount is $3,000,000 or nine times (9x) the monthly recurring revenue, whichever is greater.
The lead financial institution’s share is a minimum of 10 percent of the total loan amount and will be negotiated on a case-by-case basis.
Lead lender: Interest rate must be acceptable to BND.
BND: Variable rate is 2.00% above Prime, adjusted annually, but may be repriced more frequently at the Bank’s discretion.
Fees: The lead financial institution may charge an origination fee of up to 1 percent of the total loan amount, which shall be shared on a negotiated basis with Bank of North Dakota. The lead financial institution may add no more than 0.50 percent to the loan for a servicing fee.
Personal guarantees will generally be required from the principals with respect to all corporate and partnership borrowings. Equity requirements are evaluated on a case-by-case basis.
Security for the loan is evaluated on a loan-by-loan basis. Adequate collateral is required and must be of such a nature that repayment of the loan can be reasonably expected.
A lead lender is required. BND’s participation percentage is negotiated on a loan-by-loan basis. The lead financial institution must share a minimum of 10 percent of the total loan amount.
The maximum loan term is 10 years.
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