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U.S. TREASURY AWARDS MORE THAN $1.1 MILLION TO NORTH DAKOTA’S RED RIVER CORRIDOR FUND

on Fri, 09/26/2014 - 15:51

The Red River Corridor Fund (RRCF) has secured an additional $1,133,124 in funding for the state’s small businesses through a second disbursement from the U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI). Funding will be used to provide collateral support and direct equity investment to assist businesses with much needed capital funding for expansion, growth, and startup. 

The RRCF was awarded a total allocation of $3,433,709 million in September 2012. To date, the federal funds have generated $3.02 million in private sector financing to North Dakota businesses. “We are pleased that our success is being rewarded with an additional $1.1 million to fund the growth of North Dakota’s small business community,” said Ryan Aasheim, business development manager of the RRCF. “To date, we have helped support six North Dakota companies, which have created 62 new jobs.”

SSBCI was created by the Small Business Jobs Act of 2010, which President Obama signed into law on Sept. 27, 2010. Funded with $1.5 billion, the program is expected to spur up to $15 billion in new lending to small businesses and manufacturers as states use federal funds to leverage private investment dollars.

North Dakota’s SSBCI funding is distributed through a consortium of 36 communities led by the city of Carrington and administered by the Red River Corridor Fund. Members of the consortium applied for SSBCI funds by proposing the collateral support and seed capital programs to deploy much needed capital in the region. The programs are designed to help businesses with 750 or fewer employees obtain loans from their local bank for working capital, inventory, real estate or equipment purchases, or lines of credit.

“Through the first disbursement, the RRCF supported five new loans through the collateral support program and one investment through the seed capital program in communities that include Jamestown, Valley City, Wahpeton, and Napoleon,” said Ryan Aasheim. “Businesses we have supported include a movie theater, manufacturer of oil tank systems, a dentist, medical device company, and a construction firm.”

For more information about the collateral support program and seed capital program, you can contact the Red River Corridor Fund at 701.499.6994 or visit www.redrivercorridorfund.com

Links to related media stories here

http://www.heitkamp.senate.gov/public/index.cfm/press-releases?ID=e2c03653-2ea7-428e-9da7-0e5fd89d6ca4

http://www.hoeven.senate.gov/public/index.cfm/news-releases?ID=ae13b36b-990f-4c11-8ffb-18cd91cd5873

http://bismarcktribune.com/business/federal-funding-awarded-to-help-nd-small-business/article_9d984d90-660e-11e4-b604-9bd80ed745cf.html

http://www.therepublic.com/view/story/f7c2f5bc43d84d82b46d335c4d9c23ab/ND--Business-Fund-Award