Capital Investment Fund


The Dakota Resources Capital Investment Fund (CIF) builds financial capacity of *rural Economic Development Corporations and Revolving Loan Funds (CDFIs) that finance local development projects.

Dakota Resources is a certified CDFI by the United States Department of Treasury.

*Rural is defined as an area outside the urbanized periphery of a metro area and under 50,000 in population

BENEFITS

  • Straight forward application and underwriting process
  • Flexible capital, with neither job creation or geographic requirements (beyond rural)
    nor limits or restrictions on the end user’s type of projects or businesses financed
  • Capital may be used as local matching funds when applying for State, Federal, or other
    sources of funding
  • Capital may be blended with other funds to achieve an attractive effective interest rate
  • Loan may be renewed at maturity, subject to prevailing rates, fees, and availability of
    capital
  • BORROWER QUALIFICATION

    A qualified borrower must:

  • Use the capital in a way that is consistent with Dakota Resources’ mission to stimulate
    financial investment in rural communities that are invested in themselves
  • Have the capacity to productively use capital
  • Conduct a minimum of 50% of financing activity in a rural market, defined as an area
    outside the urbanized periphery of a metro area and under 50,000 in population
  • TERMS (EFFECTIVE JUNE 1, 2017)

    Current Rate

    5 Year Term 10 Year Term
    Fixed Rate 3.7% 3.8%
    Variable Rate

    3.6%

  • Repayment is interest-only due quarterly with ACH set up required. Principal due at
    maturity.
  • Loan Fee is 1% of the principal amount due at origination or upon renewal with
    application fee
  • Approvals are granted for 1 year subject to no material changes.
  • Funds can be committed for up to six months with loan fee paid.
  • No prepayment penalty for early principal payment.
  • Unsecured credit with no collateral requirement.
  • $100,000 minimum loan. Advances can be monthly with $100,000 minimum during
    approval.
  • Loan maximum depends on the size of the Borrower’s current capital pool and the
    experience of the organization, and no more than 20% of the Capital Investment Fund.
  • Requires an annual review with financials submitted within 180 days of fiscal year end.
  • Potential uses of funds:

    • Micro Loans
    • Business Loans
    • Community Loans
    • Leasehold Property Development
    • Industrial Park Development
    • Housing Development
    • Other Financial Products

     

    *We underwrite the organization—not the projects that will be funded. Click here for the Capital Investment Fund loan application

    CAPITAL INVESTMENT FUND BORROWERS

     CAPITAL INVESTMENT FUND INVESTORS

    *Capital Grantors

     


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