Local businesses expected to benefit from new access to loans
In an effort to find new ways to help small and start-up businesses in the region, Dakota Certified Development Corporation (Dakota CDC) is working with Bank of America to unlock low-cost capital for small business expansion and job creation. Dakota CDC announced Monday that it has received a $50,000 grant from Bank of America for use as loan loss reserves to administer a U.S. Small Business Administration (SBA) program identified as the Intermediary Lending Program (ILP). The ILP allows Dakota CDC to access $1 million in loan capital that is then used to make smaller scale loans to local businesses.
“Not wanting to rest on our past accomplishments and always striving to do more, we challenge ourselves and those we work with to be better, to work smarter, and to develop and improve our lending products and delivery,” said Steve Dusek, President/CEO of Dakota CDC. “One such improvement is continuing to play a critical role in revitalizing local economies and providing access to affordable, long-term capital. With Bank of America’s help we will provide significant strides in this area,” added Dusek.
As many as 12 local companies are expected to receive much needed loans from this effort, a 20 percent increase in the amount of loans Dakota CDC makes annually to local businesses. Dakota CDC also estimates the new capital will help retain or create 40 jobs in the area by supporting local business growth. This will contribute to economic development efforts
“Helping strengthen small businesses and new start-up companies stimulates job creation and is critical to our nation’s economic recovery. These loan loss reserve grants may unlock as much as $120 million in low-cost, long-term capital for small businesses nationwide, so even the smallest grant enables a nonprofit lender to leverage approximately ten times that amount to lend to small businesses. We recognize Dakota CDC for their partnership in continuing to drive solutions to help small businesses.” said Bank of America Community Development Financial Institution Executive Dan Letendre.