Ask Dakota Business Lending – Issue 1
As a key resource for business owners, Dakota Business Lending wants to help you find the answers you need to reach your goals and fulfill your dreams.
That is why we are answering YOUR questions about all things financing, entrepreneurship, and small business.
Here’s this issue’s top five questions for Dakota Business Lending:
Who is Dakota Business Lending?
Founded in 1982, Dakota Business Lending is a private, not-for-profit entity that serves small businesses in North Dakota, Montana, and five counties in western Minnesota. We are a 504 Certified Development Corporation (CDC), meaning we are certified by the U.S. Small Business Administration (SBA) to provide SBA 504 loans to small businesses, and work to provide financing solutions to grow the economy and create and preserve quality jobs. Since inception, Dakota Business Lending has provided over $550 million in loans with a total project impact exceeding $1.2 billion to small businesses and local economies.
What is the SBA 504?
The SBA 504 is Dakota Business Lending’s primary loan program. The goal of the 504 program is to create and retain jobs through long-term financing of real estate and equipment at a fixed, below-market interest rate. SBA 504 loans can finance up to 90% of a project’s cost for qualifying businesses at a 10-, 20-, or 25-year term.
What other financing packages does Dakota Business Lending offer?
In addition to the SBA 504 loan program, Dakota Business Lending offers several other unique financing packages. The Main Street loan is a program designed to encourage the creation, stability, and expansion of small businesses in North Dakota and can provide up to $35,000 to assist emerging businesses and their job retention mission.
Finally, the DMF/Impact loan provides up to $150,000 in financing to health and safety-related small businesses in rural communities at a fixed interest rate and 15-year (maximum) term.
How do I know which loan option is right for me and my business?
You do not have to! Let us, your lending partners, do the heavy work. We have several loan programs to fit almost any business need and can partner with you and bank or credit union to find the best financing solution tailored to you.
When should I get Dakota Business Lending involved in my business project?
The earlier, the better! It is best to contact us and your lender right away so you can have all parties on board from the very beginning. This allows everyone to work together to find the best financing solutions for your business needs. Whether it be a 504 loan or other financing solution, having everyone on the same page from the start will help the process to go as smooth as possible.