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Dakota Business Lending Allocates $7.1 Million in NMTC Financing for NuTek Natural Ingredients Manufacturing Expansion

Nov 21, 2022

Dakota Business Lending recently closed an allocation of $7,100,000 in New Markets Tax Credits (NMTC) to support NuTek Natural Ingredients and the expansion of their manufacturing facility in Fargo.

NuTek is a global supplier of clean label ingredient solutions and has been a preferred employer in the region since 2016. The updated construction of the facility and associated equipment is located on the site of NuTek’s existing Fargo location. This investment will expand their presence in the region, increase their workforce, and increase Research & Development (R&D) resources. One of the opportunities for the R&D team will be to leverage agricultural products from North Dakota to drive new product innovation. The expansion will also create an additional 27 full-time jobs in additional to their existing 38 full-time employee workforce over the next seven years.

The expansion project qualified for NMTC financing because it is located in a qualifying, highly distressed, low-income area in North Dakota. It will also bring high quality jobs for low income and minority populations that include a full benefit package, strong quality wages, training, and job advancement opportunities.

NuTek’s expansion project would not be possible without the $7.1 million NMTC allocation from Dakota Business Lending, which helps close a funding gap and ensure that NuTek can bring further capacity and innovative solutions to the market. The funding from the NMTC program allows the company to move forward immediately with their expansion efforts and begin job creation opportunities without delay. “The New Markets Tax Credits program creates value in our region by advancing opportunities for local businesses to expand operations, create new workforce opportunities, and deliver a pay-it-forward impact,” said Arthur Stickley, Chief Financial Officer at NuTek.  

Dakota Business Lending’s NMTC allocation for this project was monetized by selling the tax credits to an investor in exchange for 7 years of income tax credits as provided by the program. The actual investment from the allocation into the project ends up around 17-20% after selling the tax credits and cost of financing. NuTek also partnered with other financing and economic development entities to make this expansion possible, including the Greater Fargo Moorhead Economic Development Corp (GFMEDC).

NuTek recently delivered a total of $50,000 “pay-it-forward” donations to several local community organizations, including YMCA of Cass and Clay Counties, YWCA Cass Clay, and the F5 Project. The concept is part of Dakota Business Lending and the NMTC program’s effort to maximize and spread the economic impact of NMTC projects. “This is exactly what we had in mind when we developed the pay-it-forward benefit within the NMTC program. The impact in our community will maximize our efforts to pass along direct financial assistance to others in need, while supporting workforce development and infrastructure vitality in the state,” shared Steve Dusek, President and CEO of Dakota Business Lending. The three local non-profits help support diversity in the workforce, expand education and employment resources, and provide immediate impact in Cass and Clay County communities.

Dakota Business Lending allocated their full $30 NMTC allocation in 11 months to four qualifying expansion projects throughout the state and were awarded an additional $30 million in NMTC funds in late October 2022. They currently have several projects in the pipeline for consideration, as well as an application in progress for the next round of funding.  

About NuTek Natural Ingredients

Created by nature, nurtured in science, and brought to life by expertise in R&D, manufacturing and sourcing, NuTek Natural Ingredients is a global supplier of cost effective, clean label ingredient solutions for our customers and partners. Aligned with our core values of simplicity, transparency, and sustainability, NuTek’s mission is to create solutions that support the nutritional demand of a growing global community. NuTek started operations in Fargo, North Dakota in 2016 and has been a preferred employer in the region.

About the New Markets Tax Credits (NMTC) Program

The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. Since the inception of the NMTC Program, the CDFI Fund has completed 18 allocation rounds and has made 1,461 awards totaling $71 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone. To learn more about the New Markets Tax Credit Program, please visit

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