North Dakota hosts 75,265 small businesses, as reported by the U.S. Small Business Administration. Despite the presence of major companies in sectors like agriculture and energy, small businesses, especially those supporting the expanding tourism sector, play a vital role.
These businesses provide jobs for 196,770 individuals, accounting for over 25% of the state’s residents. They generate a total payroll of $9,131,397. North Dakota’s small business lenders offer various loan options.
Currently, 641 active small business loans exist in the state, amassing a loan volume of $376,528,096, with the average loan amounting to $587,407. This underscores the significance of these lenders in sustaining the state’s economy and workforce.
In North Dakota, small business loans cater to companies with typically fewer than 100 employees. These financial aids can be pivotal for various operational needs, from expanding the business, launching new products, recruiting staff, technological advancements, to opening new branches.
Various loan types are available to cater to diverse business needs. When a company borrows, the understanding is to return the amount with interest within a stipulated period. While terms often have flexibility, it’s the lender’s discretion to assess the borrower’s risk before approving the loan.
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Risk Assessment and Eligibility
To evaluate the potential risk, lenders require in-depth insights into a business’s financial health. Key documents include balance sheets, profit and loss statements, and a thorough examination of the company’s financial trajectory.
A borrower’s eligibility isn’t merely their ability to repay; lenders consider existing debts, the company’s credit score, and the owner’s financial standing.
Additionally, a well-structured business plan can offer a more comprehensive view of the company’s objectives, ownership, industry position, products, and services. Market analysis can further elucidate the firm’s profitability prospects.
Diverse Loan Options in North Dakota
Businesses in North Dakota can avail of a plethora of lending options, such as:
- Bank loans;
- SBA loans;
- Direct loans;
- Microloans;
- Business term loans;
- Business lines of credit;
- Equipment financing.
However, the landscape of business financing isn’t restricted to traditional financial institutions. Entrepreneurs can also explore opportunities with regional business development entities, economic development agencies, and local government-backed small business development centers.
Niche loans, like those earmarked for real estate or minority-owned ventures, often have specific eligibility criteria.
Top 5 Small Business Lenders in North Dakota
| RANK | BANK NAME | # OF NORTH DAKOTA LOANS | AVERAGE INTEREST RATE | AVERAGE LOAN SIZE |
|---|---|---|---|---|
| 1 | First Western Bank & Trust | 30 | 4.42% | $265,863 |
| 2 | Aspire Bank | 15 | 4.46% | $191,347 |
| 3 | Bremer Bank | 14 | 4.37% | $736,471 |
| 4 | VISIONBank | 13 | 4.81% | $165,662 |
| 5 | Red River State Bank | 11 | 4.36% | $1,317,282 |
First Western Bank & Trust
Established in 1964, First Western Bank & Trust stands as a pillar in the community banking sector. Functioning as a comprehensive financial hub, it offers a spectrum of conventional banking solutions alongside trust services, extensive insurance options, leasing, and a myriad of other offerings.
Embracing technological advancements and innovation, the institution consistently positions itself at the forefront of the industry, ensuring delivery of top-tier products and services to clientele.
Aspire Bank
Established in 2017 in Fargo, North Dakota, by Toby Kommer, Aspire Bank presents a diversified portfolio of services. It caters to myriad banking needs, encompassing both personal and business realms, with offerings like small business loans, insurance, checking and savings accounts, and a host of digital banking solutions.
Engagement with Aspire Bank revealed their stance on SBA loan collaboration:
- Provision for SBA 7A loans, SBA 504 loans, and SBA Express loans;
- Availability of business lines of credit and term loans.
To liaise with a seasoned SBA loan expert, one can utilize the dedicated matching form, streamlining alignment with SBA loan schemes suited to distinct needs.
Bremer Bank
Initiated by Otto Bremer in Minnesota in 1943, Bremer Bank has curated a suite of instruments to aid its patrons in financial goal realization. Their broad spectrum of services includes solutions tailored for business, agriculture, wealth management, and individual banking, supplemented by loan and insurance provisions.
Interactions with Bremer Bank shed light on their distinctive advantages during the SBA loan phase:
- Status as an SBA Preferred Lender;
- Decentralized, local credit decision-making in Minnesota;
- Extensions include SBA 7(a), SBA 504, and SBA Express Line of Credit;
- Loan provisions scaling up to a potential $15 million, contingent on the program.
For those seeking to engage with adept SBA loan officers, the specialized form can facilitate swift matches with SBA loan initiatives congruent with individual profiles.
VISIONBank
With roots tracing back to 1901 in Ada, Oklahoma, VISIONBank boasts over a century of industry expertise. They offer an extensive suite of services tailored to both individual and commercial clientele, highlighted by small business loans, and a range of account services.
Dialogue with VISIONBank revealed key facets of their SBA loan offerings:
- Introduction of the SBA 7(A) Loan Program, SBA Express, and SBA Export Working Capital Program;
- Loans earmarked for diverse purposes, from working capital to equipment acquisition.
For a seamless connection with proficient SBA loan representatives, the dedicated form can help pinpoint SBA loan paradigms tailored to unique scenarios.
Red River State Bank
Originating as the First State Bank of Fertile in Minnesota in 1887, Red River State Bank has since expanded, currently operating from two distinct locations. They offer a vast array of services, including bespoke solutions for business, agriculture, and personal banking requirements.
Engagement with Red River State Bank yielded insights into their SBA loan facilitation:
- Dispensation of the SBA 7(A) Loan Program and SBA 504 Loan Program;
- Versatile loan utilization, encompassing working capital needs, business takeovers, and equipment investments.
Conclusion
North Dakota’s vibrant economic landscape is significantly influenced by its flourishing small business sector. Boasting 75,265 small enterprises, the state demonstrates the critical role these businesses play in job creation, community development, and overall economic health.
These entities have access to a diverse range of loan products, tailored to meet their specific needs and objectives. While large corporations have a strong presence, especially in sectors like agriculture and energy, it’s the small businesses that act as the backbone of North Dakota’s economy.
With comprehensive financial support systems in place, North Dakota offers a promising environment for entrepreneurial growth and sustainability.