Creative Business Financing Tools
Every business and every project has unique financing needs. Even SBA 504 projects can have various nuisances and gaps that need to be filled.
By leveraging the right mix of programs, resources, and creative strategies, Dakota Business Lending helps businesses build the best financing stack for their project’s specific needs.
Here are three tools we often use, on their own or layered together with the SBA 504 loan program, to keep deals moving forward.
Seller Carryback
Sometimes, borrowers don’t have enough cash available for their portion of a SBA 504 project. In these cases, seller carryback financing can be a great option to bridge the gap.
This option allows the seller of a business or property to act as the lender for part of the purchase price. In an SBA 504 deal, the seller carryback can be structured as part of the borrower’s injection (down payment), reducing how much cash the buyer needs to bring in upfront.
For example :
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- Borrower contributes 5% equity
- Seller carryback note provides 5%
- Together, this meets the 10% minimum down required
This option is especially powerful for borrowers who may not have as much liquid cash on hand. It provides flexibility, while still meeting SBA 504 program requirements.
Direct Business Loans
Not every project fits neatly into one loan framework. That’s where our very own Direct Business Loan (DBL) program comes in.
This flexible financing tool provides $1,000 – $75,000 for businesses at any stage, helping them:
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- Fill gaps when traditional financing is not enough
- Cover costs that fall outside SBA 504 rules
- Provide the missing piece to help deals close
For example:
A manufacturer secures an SBA 504 loan for real estate, but equipment costs push beyond SBA limits. A Direct Business Loan can cover the gap, ensuring the project stays on track.
Whether it’s a start-up, expanding business, or established company tackling a complex project, the DBL program can give borrowers the flexibility they need to move forward.
Leveraging Partner Programs
Local and regional partners can add even more layers of support to a financing package. These resources can make a big difference for small businesses by lowering costs and unlocking additional opportunities.
Examples include:
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- Economic development funds to reduce borrowing costs
- State incentives that reward job creation or investment in rural areas
- Local business grants to support local entrepreneurship
The challenge? These programs are scattered across dozens of agencies and organizations. That’s why we created The Vault – a comprehensive digital library containing all of the financing programs and business resources in North Dakota.
Entrepreneurs can utilize this tool to find funding opportunities to strengthen their financing stack and move projects forward.
Why It Matters
Financing stacks aren’t just creative tools. They’re what keep strong projects from stalling and help more businesses cross the finish line.
Have a project in mind? Contact a loan officer near you to explore the options.
