North Dakota Opportunity Fund creates Collateral Support Program


LewisClark DG

New program will provide an additional line of support for North Dakota’s small businesses

(MANDAN, ND) – The North Dakota Opportunity Fund (NDOF) Steering Committee recently
voted to create a new collateral support program which expands the financing options available
to the lending and business community served by NDOF.
Created in 2012 as a direct result of the federal Small Business Jobs Act of 2010, which allowed
for the creation of State Small Business Credit Initiatives (SSBCI), the North Dakota Opportunity
Fund leverages private financing to help small businesses and manufacturers attain needed
loans and investments to expand and create jobs.
Led by the City of Mandan, a consortium of 38 municipalities (see attachment) was originally
allocated almost $10 million dollars for the loan participation program. Lewis & Clark
Development Group manages the fund on behalf of the consortium. Since 2012, NDOF has
disbursed $29.9 million dollars in loan proceeds.
Lenders Across the State Expressed Strong Support for New Program
Matt Burthold, commercial lending director for Lewis & Clark Development Group, said the
program’s success over the years prompted discussions about adding a collateral support
Late last year, the NDOF Steering Committee distributed an online survey to lenders across
North Dakota. The survey found strong interest in expending the fund to include collateral
“The strong support and interest in offering a collateral program is, I think, a vote of confidence
in the North Dakota Opportunity Fund,” says Burthold. “The support certainly helped the NDOF
Steering Committee in making the decision to proceed with creating a new program.”
Burthold says the Steering Committee did its due diligence in reviewing similar programs
throughout the United States.
“There is obviously no one size fits all approach, but we determined that the best model for us is
similar to a program used in Idaho. We opted to base our new program in part, but not entirely,
on what they offer,” notes Burthold.
How the NDOF Collateral Support Program Will Work
The new NDOF Collateral Support Program will establish pledged case collateral accounts with
lending institutions to enhance loan collateral for qualifying businesses, which will help them
obtain financing on acceptable terms and conditions.
The following is an example of how the new program may help a small business:
Small Business Expansion Project:
§ $500,000 total project; $485,750 value of total collateral available
§ $340,025: Lender policy is 70% loan-to-value advance rate
§ $75,000: Business is able to provide 15% cash equity
§ $84,975: Funding gap challenge
Solution Provided by the NDOF Collateral Support Program:
§ $425,000: Lender loan with an $84,975 Collateral Support Certificate of Deposit (CD)
§ $75,000: Borrower Equity
“The NDOF Collateral Support Program will be implemented prudently to provide another
valuable line of support for North Dakota’s small businesses,” says Burthold, who reports
inquiries are already being made from small businesses across the state.
For more information on the North Dakota Opportunity Fund, contact Burthold at (701) 667-7601
or at You can also learn more online at