Business Loan Programs

The RRRC provides direct financing to new and expanding businesses within the region through three loan programs including the Red River Revolving Loan Fund (RLF), Progress Fund, and Community Development Loan Fund (CDLF).  The Red River RLF and Progress Fund programs are owned and managed by the RRRC and were initially capitalized with funds from the US Department of Commerce Economic Development Administration, CDLF, and local contributions. The  RRRC manages the CDLF  program within the region in partnership with the ND Department of Commerce Division of Community Services.

Each of these programs are used to provide gap financing – to help finance a gap that can be left after equity and bank financing have been maximized.  Since the inception of the Red River RLF and Progress Fund programs in the mid 1990s, the RRRC has provided 83 loans through these three financing programs in the total amount of $7.5 million which was leveraged with $61 million in additional capital.  

Applications for these programs include the following:

  • Business Plan
  • Three Years Financial Projections
  • Personal Financial Statement (for each person with greater than 20% ownership)
  • Bank Commitment Letter(s)
  • Three Years Historical Financial Statements (if available)
  • Three Years Income Tax Returns – Business and Individual
  • Credit Report Consent Form
  • Environmental Review

Collateral for loans can include liens on equipment, furniture and fixtures, land and buildings.  All loans require a personal guarantee(s) from owner(s) with greater than 20% ownership.

CDLF loan recommendations for financing are provided by the RRRC’s Economic Development Committee and Board of Directors. CDLF loans also require the sponsorship of a local unit of government (city or county).  The CDLF application period can be a lengthy process of 60 to 90 days.

All programs require loan approval PRIOR to initiating the proposed project.

Contact the RRRC if you are interested in applying for a loan.