Fund your North Dakota business

When your own money is not enough, start with an advisor, then read which program actually puts up money. The Bank of North Dakota can fund part of a business loan. Its programs still begin at a local lender. Regular SBA loans also come from a lender.

What’s different in North Dakota

• Advising is free. The ND SBDC says there is no cost for ND SBDC services¹.
• The state bank can fund part of a loan, and you still apply at a local bank. Every Bank of North Dakota business lending program starts with a local lender³.
• The named startup voucher is closed. Innovate ND is closed for the 2025-2027 biennium⁸.
• One SBA office covers the state. Fargo serves all 53 counties¹¹.

Do this

1. Write down what you need and what it is for. A Beginning Entrepreneur guarantee can cover startup costs, working capital, equipment, and real property. PACE cannot be used to refinance. The program pages say which uses fit.
2. Book advising. The ND SBDC offers no-cost, confidential, one-on-one advising for for-profit businesses residing in North Dakota. The same page says there is no cost for ND SBDC services¹. Commerce says staff contact you within 3 business days² after you register.
3. Use the SBA office. The North Dakota District Office in Fargo offers funding programs, counseling, federal contracting certifications, and disaster recovery for the entire state, which the page also states as all 53 counties¹¹.
4. Understand who lends the regular SBA loans. 7(a) and the other ordinary SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind. After a declared disaster, the SBA lends directly through its disaster assistance loans. A disaster by itself does not qualify a business. Eligibility depends on the declaration and the loan type.
5. Read the Bank of North Dakota programs before you assume you apply in Bismarck. The business loans page says Every Bank of North Dakota business lending program starts with a local lender. The local lender sends the application to the Bank of North Dakota³. The Beginning Entrepreneur guarantee is a guarantee to the financial institution on a loan of not more than $500,000, not a loan the Bank of North Dakota makes to you directly. Apply through your lender. The borrower must be a North Dakota resident with a high school diploma or GED, training or experience in the business, and a net worth under $500,000. The guarantee is 85% on a loan up to $150,000, 75% from $150,001 to $300,000, or 50% from $300,001 to $500,000. The guarantee lasts no more than five years⁴. The Business Development loan is a participation in a loan for a North Dakota business that is riskier than a lender would usually accept, including a startup, an expansion, or a refinance. The business must be in North Dakota. The Bank of North Dakota’s maximum participation is $1,000,000, and it will consider up to 90% of the loan in most cases⁵. That portion is the Bank of North Dakota’s money in the loan. The application still starts with the lender.
6. Read PACE only if you are a certified primary sector business. It is an interest buydown for a primary sector business certified by the Department of Commerce. It is not for refinancing debt, and not for moving within North Dakota. The loan itself has no stated maximum. The Bank of North Dakota's share of the loan must be 50% to 80%. PACE provides an interest buydown of up to $500,000 per biennium, matched by the community⁶. A new shop, restaurant, or local service is not this program unless Commerce has certified it as primary sector.
7. Read the grant pages the same way. Commerce says there are very few programs that offer grants. It also says to ask the local development office whether it has a loan or a grant². Innovate ND is a voucher for customer and market research, up to $50,000 in reimbursable expenses, in two phases of up to $25,000. The grant list still says up to $22,500 per business.* Those two Commerce pages do not match. The program page also says the application period is closed for the 2025-2027 biennium, that retail, hospitality, and local service businesses are not eligible, and that a pitch does not guarantee a place in the program⁸. Automate ND was up to $500,000 for a primary sector certified business, not more than half the cost of the machinery, equipment, or software, and it is closed and not taking new applications¹⁰. The Native American Small Business Support page says Commerce has already awarded the $600,000, and the funds must be spent by June 30, 2027⁹. The grant list still announces the availability of $600,000⁷.* The program page is the one that says the awards are already made.
8. Keep your paperwork ready. Lenders and advisors ask for your formation documents and EIN. Register your business and Get your tax IDs.

What you get back

An appointment with an advisor, and help preparing what a lender asks for. A loan decision on a Bank of North Dakota program comes from the local lender, with the state bank participating or guaranteeing if it approves the lender’s request. A grant decision comes only if a program is open and selects you. These pages do not promise a finished plan or an approval.