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CONAC Announces New Funding Policies
5/8/2007
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The CONAC REAP Zone encourages retention, expansion and start-up entrepreneurial businesses in the six counties and two Native American Reservations in the Zone by providing equity and/or loan opportunities. The following policy is applicable to only HUD EDI funds administered by the CONAC REAP Zone.
LOANS:
CONAC Capital Fund-
The CONAC Capital Fund, LLC is a community development venture capital fund that provides seed, early-stage and expansion-stage equity investment to promising businesses located in rural North Dakota. The CONAC Fund is a for-profit fund that is owned by its investors. Typical applicants require significant capital, which is usually leveraged with other equity and debt. The CONAC Capital Fund, LLC either provides a loan to the applicant, directly invests in the business to seek a return, or a combination of both.
Revolving Loan Fund (RLF)
The Revolving Loan Fund (RLF) is intended to provide financing alternatives and leverage other funding sources for new or expanding businesses or community facilities within the boundaries of the two North Dakota REAP zones. The total investment by the RLF in any one business cannot exceed 45% of the total capital requirements of the business. Loan size varies between a minimum of $5,000 and a maximum of $50,000. Project owner(s) must provide a minimum of 10% equity.
Micro Enterprise and Small Business Incentives (Micro-Loans)
Under this fund, the Applicant(s) must conduct business and have a physical presence within any of the participating Counties/Reservations of the CONAC area. The enterprise must be an active or new small business venture (i.e., retail, service, manufacturer, sales, or information business) and may employ up to ten people.
The fund will cover no more than 50% or $5,000 (whichever is less) in any one application or combination of applications under this fund. Matching funding must be in cash and must relate directly to the proposed activity. In-kind funds will not be considered a match under this program, although Applicants may disclose any such funds in a project budget to track the true cost of the investment. All funds must be repaid in monthly installments with a two (2) percent annual rate of interest over a period of three years from the date of signing the Agreement.
A business venture can receive a loan up to a maximum of $5,000 for activities that can be associated with a venture start-up or expansion, such as, but not limited to:
1. Business Plans
2. Business Start-Up Costs
3. Product Development
4. Licenses/Patents/Certifications
5. Marketing Plans
6. Research and Development
7. Marketing Activities
8. Equipment Essential to Product Development
Activities that will not be funded include:
1. Lobbying or Political Activities
2. General Business Operating Expenses
3. Personal Expenses
4. Arts, Cultural Activities and Festivals
5. Sports Programs
6. Religious Activities
GRANTS:
Federal funding for the REAP Zones has diminished significantly since 1999. As a result, fewer grant opportunities are available from the CONAC REAP Zone. Applicants should first consider loan opportunities listed above before seeking a grant. Grant requests are considered on an individual basis; however, requests must be matched 1:1 with applicant funds and generally follow the guidelines listed below:
New Businesses
Maximum grants of $5,000 will be considered for the following:
1. Feasibility studies
Existing Businesses
Maximum grants of $5,000 will be considered for the following:
1. New innovative methods for rural health-care services
2. New innovative methods for value-added agriculture
3. Renewable energy activities
4. SBDC activities
Maximum grants of $1,000 will be considered for the following:
1. Youth entrepreneurship activities
Maximum grants of $500 will be considered for the following:
1. Farmers Market Activities
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More Info, Contact: |
Laura Every |
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438-2660 |
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levery@gondtc.com |
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