Accelerated Growth Loan Program
The Accelerated Growth Loan Program assists North Dakota-based companies entering or anticipating a period of dynamic growth. These companies have a record of proven operations, experienced management and the ability to generate cash flow but have limited assets for traditional bank financing.
The borrower can be any person or entity who owns a North Dakota-based company that anticipates a minimum growth in sales of 15 percent over three years with existing sales of $1.5 million to $10 million annually.
Proceeds shall be used to:
- Finance the acquisition of real property
- Remodel or expand an existing business if owner-occupied
- Purchase or lease 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 participation is $3,000,000. 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.