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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 Business Lending 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
- 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.
Rate: Fixed rate at the time the application is reviewed, depending on risk and length.
Contact us to discuss project feasibility and details of this and other loan programs.
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