Lenders
Lenders
The term “Dakota” means “friend or ally”, and at Dakota Business Lending, that’s exactly how we see our relationship with you!
We consider you more than just lenders on a project, but true allies working together in the best interest of small businesses. Not only that, but we want to be a dedicated partner and sense of support to YOU – the lenders and partners who are often the first line of communication to entrepreneurs and small business owners.
Why Work with Us?
Unique Financing Programs
We offer several financing programs for any business stage, industry, and/or size and will help determine which one(s) make the most sense for your project.
Multi-State with a Local Feel
While our footprint spans across North Dakota, Montana, and Minnesota, we have loan officers native to each state who know, live, and love the areas they serve.
Team-Orientated
We’re happy to partner with other financing entities/lending partners to stack resources and get the best deal for your business.
SBA Ease and Accessibility
Our online application platform, Gateway, and our average 80%-90% first pass rate help make the loan process as simple and efficient as possible.
SBA 504
Our primary loan program – the SBA 504 – is a long-term, fixed-rate financing tool created by the U.S. Small Business Administration to help promote economic development and retain quality jobs. Because of its unique financing terms, the program can save business owners thousands of dollars in the long run.
Benefits to Borrowers
- Minimum 10% down payment
- Fixed, below-market interest rates
- 10, 20, and 25-year terms
- No balloon payments at the end of the loan
Benefits to Lenders
- 50% LTV once SBA note has funded
- Lowers risk, allowing more challenging or bigger projects that may be limited by legal lending limits to move forward
- Reduced, blended interest rate, making financing more attractive and competitive
- No SBA guarantee/reporting requirements as bank’s financing is completely independent
SBA 504 At a Glance
Loan Amount – $25,000 – $5.5 million
Eligible Businesses – For-profit corporations, LLCs, partnerships, or proprietorships that meet the SBA’s size standards can qualify for the program.
Eligible Uses – Long-term, fixed assets such as:
- Land and building purchases
- New construction or renovation
- Heavy machinery or equipment purchases and moving expenses
- Professional fees
- Refinancing
Multiple SBA 504 Loans
Your borrower can, and may even benefit from, using multiple 504 loans for their expansion project.
- Limitations: Borrowers must leverage no more than a total of $5M in outstanding SBA debt.
- Special Provision: Manufacturing companies can utilize as many SBA loans needed with a limit of $5.5M per loan.
Use our 504 Calculator to get a breakdown of what your 504 project would look like in action and compare it’s structure to other loan options.
SBA 504 Debt Refi
The SBA 504 Debt Refinance program can be a great opportunity for your borrowers to restructure their existing commercial debt.
Debt Refinance Options
- Straight Refinance
Standard refinance program used to lock in lower rates with the option to get cash out for business expenses. - Debt Refinance with Expansion
Can be used to refinance existing debt and cover new projects costs as long as the existing debt does not exceed 100% of expansion costs.
SBA 504 Debt Refinance At a Glance
Benefits of the program:
- Stretch out loan payments
- Get cash out for working capital
- Lock in below-market interest rates
Eligible Uses – Certain types of commercial loans such as:
- Existing commercial real estate debt
- Existing debt on equipment and other long-term fixed assets
- Professional fees related to the project
- Cash out for business operating expenses
Qualifications – Borrowers must meet certain criteria to be eligible for the SBA 504 Debt Refinance program including: *changes effective 11/15/24
- Original debt incurred 6 months ago
- 75-85%+ 75% of original use of proceeds for commercial real estate (may also include equipment and other long-term fixed assets
- 100% incurred for the benefit of the business
- NO change of ownership in business for the past two years (limited change may be considered if no change in management)
- Review of payments for the past 12 months
- Modifications in past 6 months to be reviewed on a case-by-case basis
- Federally guaranteed debt may be available for refinancing under special conditions
- Business occupies 51%+ of commercial real estate
*This is a very basic overview of program qualifications and there may be variables. Reach out to our team to discuss details for your specific project.
For more details on the requirements and how the program works, download our SBA 504 Debt Refinance Checklist.
Community Impact Loans
Our Community Impact Loan program is a flexible financing tool that can help fill the gap for businesses in all stages when other programs cannot.
Community Impact Loans at a Glance
Loan Amount: $1,000 – $250,000
Benefits for Borrowers:
- Accessible financing option for a variety of business owners
- Business advising opportunities available
- Can help set you on the Path to Bankability
Other Programs
We offer a variety of other loan programs for any businesses of any stage, size, and industry.
Reach out to one of our loan officers to learn more about these programs and which one is the right fit for your next project.
Stacking Resources
As you and your borrower’s allies, we don’t shy away from complicated. Our mission is to help you and your business find the financial solution you need, whether that’s…
- Securing working capital
- Navigating complex projects with various funding sources
- Collaborating with state and local programs
- Finding grant options
- Providing technical assistance
- Or anything in between!
Stacking resources is a great way to help face bank lending limits as there are several local programs that can help cover the bank portion of the loan.
We have extensive experience working with several local programs and can help you put together the best package to fit your borrower’s needs.
Want to find other funding sources to stack and help your borrower?
Check out the Vault, which contains a comprehensive library of the local financing programs available for businesses in North Dakota. (MT & MN coming soon!)
Get Started
Ready to get the loan process started? Download an application below.
Or better yet! Contact a loan officer in your area to jumpstart the process.
Additional Resources
Looking for additional resources for your borrowers?
Check out our other programs designed to help them along their journey.
Articles
Vault
Entrepreneur District
ACTIVATE Events
ACTIVATE U Podcast
ACTIVATE Magazine
Worksheets
Looking for additional information/training?
Our team is happy to meet with you individually or virtually/in-person with your team to talk through any of these topics and more.
