Who is eligible for IRP loans?

Any type of legal entity may be considered as a borrower under IRP, including individuals as well as public and private organizations. This includes government entities and agencies. However, the primary purpose is to assist small businesses with their financial needs.

To qualify for an IRP loan, the borrowers must be unable to obtain the proposed loan elsewhere at reasonable rates and terms. The loan may be offered directly to applicants or leveraged with other sources of funding, including participation by local banks.

USDA Rural Development requires that at least 51 percent of the owners or members of the organization must be United States citizens or individuals admitted for permanent residence.

How much of a project can be funded with IRP?

The Dakota CDC can make IRP loans to qualified applicants for up to 75 percent of eligible projects. Loans are available in amounts up to $150,000.

What kinds of projects can be financed by IRP loans?

IRP loan funds can be used for (but are not limited to) these purposes:

• To finance a new or existing business.
• To purchase or lease equipment.
• To finance the acquisition of real estate.
• To provide working capital.

The proceeds cannot be used for certain kinds of projects:

• Tourist, recreation or amusement centers.
• Community television services or facilities.
• Charitable and educational institutions, churches, or fraternal organizations.

What is the interest rate?

The Dakota CDC provides IRP loans at a fixed rate for the term of the loan. The rate will be set at the time the application is reviewed, depending on risk and length.

What is the term of the loan?

Repayment terms are based on the use of the loan proceeds or the life of the assets being financed. Generally the term is 7 years or less.

What collateral is required?

The applicant is required to provide at least 10 percent equity in the project; the amount of security varies on a case-by-case basis. The owners must personally guaranty repayment of the loan.

When a bank participates with the Dakota CDC in funding a project, the CDC generally shares the first position on collateral unless other security is provided.

How to get started

Contact the Dakota CDC to discuss project feasiblity and details of IRP and other programs.

Financing Business Growth & Community Development

The Dakota Certified Development Corporation has been authorized by the U. S. Department of Agriculture to offer direct loans to small businesses throughout North Dakota.

Funded under the federal Intermediary Relending Program, the Dakota CDC offers these loans to finance business facilities and community development projects in rural areas — including cities with populations of up to 25,000.

The program’s goal is to provide financing for community development projects, establishment of new businesses, expansion of existing businesses, and creation of new jobs or retention of existing jobs.

What sources underwrite the DCDC’s IRP lending?

The Dakota CDC is an intermediary lender of IRP, a USDA program administered through Rural Development. The funds are being leveraged for maximum effectiveness, whenever possible, through local bank participation in projects in their area.