Bank of North Dakota

The Bank of North Dakota serves as the only state owned bank in the nation. The Bank offers innovative capital financing programs which generate new wealth and new jobs for North Dakota.

The Bank of North Dakota offers several business start-up programs. Such as the

Business Development Loan Program and the

Beginning Entrepreneur Loan Guarantee Program

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Bank of North Dakota

www.banknd.com

Beginning Entrepreneur Loan Program

This program is designed to assist in business start-up financing by providing a financial institution with an 85% guaranty of a loan not to exceed $100,000.

The borrower 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 have a net worth of less than $100,000 excluding the value of the following personal assets: principal residence, one personal or family motor vehicle, household items and personal belongings.

The Bank may approve a guaranty 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.

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For more information:

www.banknd.com/ls

Bank of North Dakota
700 East Main Ave
PO Box 5509
Bismarck ND 58502-5509
Phone: 701-328-5671
1-800-472-2166 ext. 5671

North Dakota Development Fund

North Dakota Development Fund is a division of the Department of Economic Development & Finance and was founded as an economic development tool.

The Development Fund provides flexible gap financing through debt and equity investments for new or expanding primary sector businesses in North Dakota.

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For more information:

www.growingnd.com

North Dakota Development Fund
1833 East Bismarck Expressway
Bismarck, ND 58504
Phone: 701-328-5310
Fax: 701-328-5395

U.S. Small Business Administration (SBA) Business Loan Program

The Small Business Administration (SBA) is the primary advocate of small business within the federal government. SBA is known for its small business loan guarantees. Through its loan guarantee programs, the SBA provides access to financing for small businesses that cannot obtain financing on reasonable terms through normal lending channels. SBA can guarantee up to 80 percent of the loan amount for the qualifying businesses.

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For more information:

www.sba.gov/nd

US Small Business Administration
P.O. Box 3086
Federal Building, Room 219
657 Second Ave North
Fargo, ND 58108-3086
Phone: 701-239-5131
Fax: 701-239-5645

MicroLoan Program

The MicroLoan Program is designed to assist start-up, newly established and growing small business concerns obtain short-term, fixed interest rate loans.

The borrower must be a for profit business concern within the state of North Dakota. Loans are given to provide working capital, purchase inventory, supplies, business furniture, business machinery and equipment.

The program is administered by Lake Agassiz Regional Development Corporation and sponsored by U.S. Small Business Administration.

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For more information:

www.lakeagassiz.com

Lake Agassiz Regional Development Corporation
417 Main Ave.
Fargo, ND 58103
Phone: 701-235-1197
Fax: 701-235-6706

The North Dakota Securities Department

The North Dakota Securities Department regulates the offer and sale of securities and franchises in the State of North Dakota, and protects the investing public by enforcing compliance with our state's laws.

The North Dakota Securities Department supports the capital formation process and provides mechanisms for North Dakota companies to access capital from the investing public. In the biennium that began July 1, 2001, Securities has provided capital formation support and assistance to 163 North Dakota companies working to raise $164,533,000 in capital from investors.

See the Department’s guide to raising capital by visiting the web site.

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For more information:

www.ndsecurities.com

North Dakota Securities Commissioner
State Capitol - 5th Floor
600 East Boulevard Avenue
Bismarck ND 58505
Phone: 1-701-328-2910
1-800-297-5124
Fax: 1-701-328-2946

Email: ndsecurities@state.nd.us

Seed Capital Tax Credit

An individual, estate or trust is allowed a state income tax credit for investing in a business certified by the Department of Commerce Division of Economic Development and Finance. The Credit is equal to 30 percent of an investment of at least $5,000 but not more than $50,000. Not more than 50 percent of the credit is allowed in the tax year of investment. The unused credit may be carried forward up to four years.

Tax credits for investments in one qualified business may not exceed $250,000.

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For more information:

ND Seed Capital Tax Credit

http://www.nd.gov/tax

Office of State Tax Commissioner
State Capitol, 600 E Boulevard Ave.
Bismarck ND 58505-0599
Phone: 701-328-2770
or
1-800-638-2901

Dakota Renaissance Ventures Corporation

Local Renaissance Zones have been created to enhance the redevelopment of downtown areas.

Renaissance Ventures is a corporation that invests in small, early-stage businesses that are located in or are willing to relocate to a renaissance zone. The corporation is focusing on the high-tech sector, especially business to business e-commerce, e-tailing, networking, communications and media.

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For more information:

Dakota Renaissance Ventures
Corporation
51 Broadway
Suite 500
Fargo, ND 58102
Phone: 701-293-8892
Fax: 701-293-7819

Value-added agricultural food and nonfood products, manufacturing of goods, technology and machinery, information service companies, and international trade.

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For more information:

Center of North America Capital Fund, LLC
c/o CEO Praxis, Inc. Managing Member
The Dacotah Building
100 North 3rd Street
Grand Forks, ND 58203
Phone: 701-775-3350

Convexity LLC

Convexity LLC seeks out the most sound, innovative and promising web-based business plans and helps the entrepreneurs develop those ideas and bring them to market. In addition to seed capital, convexity LLC provides these e-entrepreneurs with world class technical, creative and business guidance, laying the groundwork for rapid growth and success.

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For more information:

www.convexityllc.com
convexity@convexityllc.com

Basic and applied research grants, marketing and utilization grants, farm diversification grants, and an agricultural prototype development grant program.

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For more information:

www.growingnd.com/APUC

John F. Schneider
701-328-5350
jfschnei@state.nd.us

or

Inez Ryberg
701-328-5318
iryberg@state.nd.us

Minnesota Investment Network

Minnesota Investment Network Corporation seeks to invest its entire Equity Fund in growth companies located in Minnesota and to build local equity capacity by establishing RAINSM funds. Investments must be capable of providing returns to investors and creating quality jobs.

Investments span from early stage to expansions, turnarounds, and ownership transitions. The investment strategy targets growth companies in the manufacturing and technology sectors located in Minnesota with a focus outside the metropolitan area of Minneapolis and St. Paul.

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For more information:

www.mincorp.org

Minnesota Investment Network
1600 University Avenue West,
Suite 401
St. Paul, MN 55104
Phone: 651-632-2140
Fax: 651-632-2145

For more information:

www.dakotaventuregroup.com

Dakota Venture Group
Center for Innovation
4200 James Ray Drive
Grand Forks, ND 58203
Phone: 701-777-3132
Fax: 701-777-2339

Funding the Innovation Process

See article by Bruce Gjovig, Entrepreneur Coach – Funding the Innovation Process

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