Rural Development IRP

Spurring development in rural areas

Why choose IRP: Borrowers in rural communities (population under 50,000) may benefit from a fixed-rate, 5-15-year loan up to $250,000 to finance a new or existing business, purchase equipment or real estate or use as working capital. Health-related IRP loans are also available, as Dakota CDC has established a partnership with Impact Foundation as well as the U.S. Department of Agriculture to offer the Intermediary Relending Program (IRP).

Loan amounts: Up to $250,000

Down payment: Minimum 10%

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

  • Finance a new or existing business.
  • Purchase machinery and equipment.
  • Finance the acquisition of real estate.
  • 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 organization

Eligible businesses

  • Any private business, non-profit entity, political subdivision, public body, special purpose district or authority serving rural areas with populations below 50,000 is eligible for these IRP funds.
  • Emphasis will be placed on loans to health and safety related organizations serving rural North Dakota.
  • Business is unable to obtain the proposed loan elsewhere at a reasonable rate.
  • 51% of the owners or members must be citizens of the U.S. or individuals admitted for residents

Collateral and security: Personal guaranties required by all owners over 20% ownership; 1st lien or shared 1st lien position required on all collateral

Terms: 5 – 15 years; generally the term is 7 years or less.

Rates: Fixed rate at the time the application is reviewed, depending on risk and length.

Other questions? See our FAQ

Contact us to discuss project feasibility and details of this and other loan programs.