Beginning Entrepreneur Loan Guarantee

Assistance with business start-up financing by providing a financial institutions with guaranty of a loan not to exceed $200,000 with this program.

The borrower must be a North Dakota resident who is a high school graduate or has received a general equivalency certificate, with training by education or experience in the type of revenue-producing enterprise. The applicant must have a net worth of less than $300,000. For licensed child care facility loan applicants, net worth must be less than $500,000.

Proceeds may be used to finance:

  • Purchase or improvements of real property, equipment or personal property,
  • Working capital needs
  • Child care home, group or center licensed by the Department of Human Services.
  • Business start-up expenses including accounting, legal and business planning
  • Refinance or consolidate debt, not to exceed 20% of total loan
  • BND 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 loan guaranty is based on this schedule:

Maximum loan amount Maximum guaranty percentage
Up to $100,000 85%
$100,001 – $150,000 80%
$150,001 – $200,000 75%

Interest: The originating lender must charge an interest rate acceptable to BND.

Fees: The guarantee fee is 0.5% per year on a BND commitment of less than five years or a one-time fee of 2% of the guaranteed portion for a full five-year guarantee commitment. The guarantee fee may be included in the loan or in the rate charged by the lender.

This program can be used in conjunction with other BND loan programs.


Lead lender establishes credit criteria.

The term of the BND guaranty may not exceed five years.

BND offers this loan by partnering with local lenders. To apply, contact your lender.

If you have any questions, contact us or call 701.328.5795.