The Red River Corridor Fund (RRCF) is a consortium of 36 North Dakota communities with the goal of supporting small businesses by increasing access to capital and enhancing credit programs across North Dakota. The RRCF was established using funds awarded by the U.S. Department of Treasury through the State Small Business Credit Initiative (SSBCI) as authorized by the Small Business Jobs Act of 2010.
Praxis Strategy Group and Development Capital Networks, manage and administer RRCF's capital resources on behalf of the consortium to foster small business growth and enhance job creation throughout the state of North Dakota.
The RRCF administers funds using two primary lending and investment programs:
Growth Capital Program - can purchase up to 25% of the total loan amount and subordinatie its interest to the participating lending institution, thereby increasing a borrower’s lending capability. The participating bank will service the loan as they normally would.
Angel Capital Program - The Angel Capital Network has been incorporated as the Red River Angel Fund and will support local business development by investing in North Dakota-based angel funds. This will fill an important need for seed and early stage funding for North Dakota entrepreneurs.
The RRCF is made up of the following 36 North Dakota communities:
The business must be located within the geographic boundaries of one of the counties within which the participating municipalities are located.
The business must have fewer than 750 employees.
The borrower cannot be an executive officer, director, or principal shareholder of the participating lender and cannot have a related interest in or be an immediate family member or executive officer, director, or principal shareholder of the participating lender.
Principals of both borrower and lender cannot have been convicted of a sex offense against a minor.
Cannot be used to support the unguaranteed portion of an SBA loan.