One of the most common hurdles entrepreneurs face when attempting to start their business is securing financing from a bank or credit union. To help overcome that hurdle, the Bank of North Dakota offers the Beginning Entrepreneur Loan Guarantee Program which assists in business start-up financing by providing a financial institution with guaranty of a loan not to exceed $200,000.

 

As with any Bank of North Dakota (BND) program, a lead lender is required to originate the loan and can then make application to the BND for the guaranty. In turn, the borrower/applicant must be a North Dakota resident, who has graduated from high school or received a general equivalency certificate, and has had some training by education or experience in that type of revenue producing enterprise. The applicant(s) must also have a net worth of less than $200,000.

 

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 guarantee term may not exceed five years and the originating lender must charge an interest rate acceptable to BND. The loan and guarantee limits are as follows:

 

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%

 

 

For more information on the program, please visit the BND's website HERE or contact Mr. Brad Thompson at 701-328-5687 or bthompson@nd.gov

 

 

 

 

DISCLAIMER: This is intended for informational purposes only. This communication in no way constitutes a guarantee of assistance or incentive from the BMDA or the aforementioned agency