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Business Development Loan Program

The Business Development Loan Program is designed to assist new and existing businesses in obtaining loans that would have a higher degree of risk than would normally be acceptable to a lending institution.

Bank of North Dakota’s total outstanding amount under this program may not exceed $25 million.

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Qualifying Requirements

Borrower - The required location of the business is North Dakota. Businesses are eligible for this program when financial conditions or the nature of the industry reflect a higher degree of credit risk than would normally be acceptable to a lending institution.

BND's participation percentage is negotiated on a loan by loan basis. In most cases, BND will consider a participation in the range of 50% to 70% of the loan.

Loan Limit - BND's maximum loan participation amount is $1,000,000.

Use of Proceeds - The proceeds of a loan shall be used to:

  • Establish or purchase new or existing business
  • Finance the acquisition of real property
  • Remodel or expand an existing business
  • Purchase or lease equipment
  • Provide working capital
  • Refinance an existing loan

Equity - There is no minimum equity requirement. All applications are evaluated on a loan-by-loan basis.

Collateral - Adequate collateral is required. This collateral must be of such a nature that repayment of the loan can be reasonably expected.

Security for the loan is evaluated on a loan-by-loan basis. Examples of acceptable security are real estate, equipment, furniture, fixtures, accounts receivable, inventory, leasehold improvements, assignment of leases, assignment of life insurance, letters of credit or guarantees.

Application Process

Application by a lead lender is required for BND's participation. See application for additional documentation required when submitting a request to BND. The lead lender is responsible for servicing the loan.

Interest Rate

Lead Lender's Portion:

The lead lender’s interest rate must be acceptable to BND. 

BND's Portion:

  • Variable Rate Option: 0.50% below Prime adjusted monthly or quarterly
  • Fixed Rate Option: 2.25% over the Federal Home Loan Bank of Des Moines Advance Rate with a rate lock not to exceed five years

Repayment Terms

The repayment terms will vary depending upon the use of the proceeds. As a general guideline, the following maturities apply to this program:

  • Real Estate - 12 to 20 years
  • Equipment - 5 to 7 years
  • Working Capital - 3 to 5 years


An origination fee of up to 1% of the total loan may be charged and is shared with BND.

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
TTY: 800.366.6888