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.

 

Investor Profile: Avera

Avera has been an Investment Partner Since 2007 with total investments to-date:  

$300,000 in grants   $80,000 in loans   $54,000 in sponsorships 

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