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

*Additional qualifications may apply

TERMS (EFFECTIVE JANUARY 1, 2018)

Current Rate5 Year Term10 Year TermAdditional information
Fixed Rate3.85%4.0%Subject to change until the loan commitment fee has been paid
Variable Rate3.7%Adjusts annually on January 1.
  • 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
  • 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

 


Updates @ Dakota Resources

We grant permission to any development organization to repost and/or reuse any article contained in our blog for educational and marketing purposes.

 

Five Grants in Place Awards made to SD Rural Teachers

South Dakota Grants in Place is a cooperative venture between the Rural Schools Collaborative and Dakota Resources. Grants in Place provides a modest grant...

Citi Community Development supports rural communities through ruralX

Citi Community Development is engaged in communities across the country supporting economic development, inclusive finance and housing.  The corporate group works to support underserved...

RuralX sponsor Ballinger Leafblad believes in leadership development

When Dakota Resources conducted a national search to help in the recruitment of a new President, they turned to executive search firm Ballinger Leafblad.

Ballinger...

WordPress Image Lightbox Plugin