Beginning Entrepreneur Loan Guarantee Program
This program assists in business start-up financing by providing a financial institution with guaranty of a loan not to exceed $200,000. Please refer to the Guarantee section below for specific guaranty percentages.
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Lead Lender - Any lending institution that is related or funded under the laws of North Dakota or the United States. The lead lender is responsible for submitting a Beginning Entrepreneur Loan Guarantee Program Lender Payment History Form to BND.
Borrower - 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 have a net worth of less than $200,000.
Guarantee - Bank of North Dakota may provide a loan guaranty based upon the following schedule:
|Maximum Loan Amount
Maximum Guaranty Percentage
| Up to $100,000
| From $100,001 to $150,000
| From $150,001 to $200,000
The maximum loan or loans to an individual borrower may not exceed $200,000.
Use of Loan Funds – 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 Bank 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 program may be used to refinance or consolidate debt provided the amount of the refinance or consolidation does not exceed 20% of total loan to be guaranteed.
Term - The guarantee term may not exceed 5 years.
Guarantee Fee - The fee is .5% per year or a one-time fee of 2% of the guaranteed portion. The guarantee fee may be included in the loan or in the rate charged by the lender.
Application Process - Application by a lead lender is required to apply for BND's guarantee. See application for additional documentation required when submitting a request to BND. The lead lender is responsible for servicing the loan.
Interest Rate - The originating lender must charge an interest rate acceptable to BND. The guarantee fee may be included in the loan or in the rate charged by the lender.
Other Features - This program can be used in conjunction with other BND loan programs.
For more information please contact us at:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
800.472.2166 ext. 328.5777
TDD (Telephone Device for the Deaf) 800.643.3916