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Financial Packages
Agricultural Products Utilization Commission
The mission of the Agricultural Products Utilization Commission (APUC) is to create new wealth and jobs through the development of new and expanded uses of North Dakota agricultural products.
APUC dollars can be used for product research, prototype development, feasibility studies, marketing plans and activities where there is a strong potential for development, commercialization and job creation in North Dakota.
The Commission administers four grant programs, and the APUC Commissioners meet quarterly to review and approve grant applications. During the 2001-2003 biennium, APUC funded 92 projects totaling $2,123,060.25.
Community Development Block Grant
The Department of Commerce also administers the Community Development Block Grant (CDBG) program for North Dakota. These funds are awarded to communities for real property, site improvements and infrastructure, and as a guarantee to fund working capital. They are designed to assist primary sector and retail sector businesses looking to establish or expand in communities and can be debt or equity.
CDBG invested $4,356,756.50 in 19 projects in 2002, and invested $3,174,750 in 21 projects for 2003.
North Dakota Development Fund
Primary sector businesses can secure up to $300,000 in financial assistance through the North Dakota Development Fund, an innovative economic development program created by the North Dakota Legislature in 1991. The Development Fund is administered through the North Dakota Department of Commerce.
The Development Fund provides “gap” financing not available from other, more traditional sources. Funds are available through direct loans, participation loans, subordinated debt and equity investments. These options provide long-term and short-term capital to new, expanding or relocating primary sector businesses.
Development Fund dollars can be used for real estate, equipment and working capital.
Since the Development Fund’s inception, it has invested nearly $47 million in 293 companies. During fiscal year 2002-03, $6.1 million invested by the Development Fund leveraged more than $36 million from other financing institutions, resulting in a $5.90 to 1 ratio.
More importantly, APUC, CDBG and Development Fund staff work closely together and frequently partner on projects to bring the best financial package to the table. For example, La Rinascente, a pasta company in eastern North Dakota, received $52,500 in grants from APUC, $425,000 from CDBG and $150,000 from the Development Fund. This was part of a $2.4 million financial package.
Related Links:
Agricultural Products Utilization Commission
Community Development Block Grant
ND Development Fund
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