10 Best Small Business Loans in North Dakota


Small business lenders in North Dakota offer the capital companies need to grow.

Key Terms

  • Be sure to have a business plan to present to small business loan lenders to use as a way to showcase the financial stability and viability of your company.
  • If you do not have a business credit history established, the owner’s personal credit score could be a factor in determining if the borrower qualifies.
  • Lenders take on risk when providing small business loans, which is why credit scores are important, and why many lenders charge an interest rate higher than other loans.

North Dakota sits along the Canadian border in an area that is noted for its wide open spaces, mountain ranges, and beautiful natural parks. The state is home to around 775,000 people, making it one of the least densely populated areas of the country. It is also one of the fastest growing areas of the country. Today, cities like Fargo and Bismarck are becoming modern communities offering exceptional amenities, entertainment, parks, and services at an affordable cost of living. Even as the population here grows, it remains a state with one of the lowest unemployment rates. Factors such as a good quality of life and economic opportunity, especially in the development of new companies, are making a significant impact on the region. Small businesses are a component of that.

In North Dakota, there are 75,265 small businesses present, according to the U.S. Small Business Administration. Though many large companies exist here too, including in industries such as agriculture, energy, and healthcare, there are numerous small businesses present that provide even more opportunities. The state has a growing tourism industry, for example, which is often supported by small businesses in food service, artisans, and other providers. Small businesses in the state provide 196,770 jobs for residents here as well. That is more than 25% of the state’s population and much more of the workforce. Total payroll for those companies is $9,131,397, funds that contribute to many households throughout the state.

To support this type of business, small business lenders in North Dakota offer a range of loan options. The most recent data from the U.S. Small Business Administration indicates there are 641 active small business loans in the state, with a total loan volume of $376,528,096. The average loan size here is $587,407. This data shows just how important these lenders are at helping to support not just companies in various industries but so many of the people that live and work in the state.

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How small business loans work in North Dakota

North Dakota small business loans provide a funding option for various business needs to companies in the state with under 100 employees (typically). These loans may be beneficial for many needs, such as business growth opportunities, new product development, hiring more employees, upgrading technology, and adding new locations. With various types of loans available, businesses can often find a wide range of borrowing options to choose from to meet their needs.

North Dakota small business lenders offer a range of loans with a wide range of features. These loans provide a capital infusion for the business with the expectation that the borrower will repay the loan with interest over a pre-set timeframe. Most of the time, there is flexibility in these terms, but it is up to lenders to determine if the borrower is a good risk and to take on the loan or not.

To determine risk, lenders typically gather a significant amount of information about the company. This often includes financial data such as balance sheets, profit and loss statements, and details of the overall financial health of the company. Companies that need funding often must show that they have the financial means to make payments on time. That often means taking into consideration other types of debts the company has as well as the credit history of the company and the owner.

Often, lenders will use the company’s business plan to gain more insight into the operations as well as the ownership. It can also provide insight into the industry, products, and services the company offers. A market analysis can help the lender to see how profitable the company could be.

As a business owner, it helps to know about all of the capital options available since North Dakota small business lenders typically offer a wide range of tools to help companies meet their financial needs. Some of the loan options commonly available in the state include:

  • Bank loan
  • SBA loan
  • Direct loans
  • Microloans
  • Business term loan
  • Business line of credit
  • Equipment financing

You are not limited to small business loans from financial institutions alone, though. Small business owners and entrepreneurs might look into local or regional business development organizations, economic development agencies, or a local governments small business development center before turning to loan participation. Specific loans like those for real estate, minority-owned businesses, or those that come with a loan guarantee come with unique requirements for eligibility.

If you have a North Dakota business with a good track record and a clear idea of what you’d do with the loan amount, North Dakota business lending or business financing may be your best bet to cover your needs. With a lending institution or credit union, each will usually have their own eligibility requirements and loan application rules. If you work with a local lender, they may also be able to provide you with further resources on local loan funds or financing options because many banks and credit unions want to support their local region.

A small business loan could help fund the success of a business. Companies should take the time needed to compare options to find those that are best suited for their needs.

10 Biggest small business loan lenders in North Dakota

North Dakota small business loan lenders ranked by loans issued in the state.

RankBank Name# of North Dakota LoansAvergage Interest RateAverage Loan Size
1First Western Bank & Trust304.42%$265,863
2Aspire Bank154.46%$191,347
3Bremer Bank144.37%$736,471
4VISIONBank134.81%$165,662
5Red River State Bank114.36%$1,317,282
6U.S. Bank95.99%$56,156
7Capital Credit Union85.02%$233,013
8Alerus Financial74.25%$440,957
9Starion Bank74.56%$247,857
10Frandsen Bank & Trust64.48%$1,329,833

Get Small Business Loan Quotes

1. First Western Bank & Trust

First started in 1964, First Western Bank & Trust was founded to help the people of South Dakota to achieve their financial goals. Now with 18 branches in Minnesota and South Dakota, First Western Bank & Trust is able to provide loans and personal and business banking for its customer’s needs.

We reached out to First Western Bank & Trust to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

2. Aspire Bank

Aspire Bank was founded in Fargo, North Dakota, in 2017 by Toby Kommer. Aspire Bank offers a number of products and services to its clients, including all aspects of personal and business banking, including small business loans, insurance, checking and savings accounts, online banking, and many other products.

We reached out to Aspire Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • Provides funding through SBA 7A loans, SBA 504 loans and SBA Express loans
  • Also offers small business lines of credit and term loans

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

3. Bremer Bank

Bremer Bank was started in 1943 by Otto Bremer in Minnesota. Bremer Bank offers a number of tools and services to help its members achieve their goals financially, including tools for business, agriculture, wealth, and personal banking, with items like loans and insurance available to assist.

We reached out to Bremer Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • SBA Preferred Lender
  • Credit decisions made locally in Minnesota
  • Offers SBA 7(a), SBA 504 and SBA Express Line of Credit
  • Depending on the loan program, maximum loans are available up to $15 million

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

4. VISIONBank

Founded in Ada, Oklahoma, in 1901, VISIONBank has over 120 years of experience to meet the needs of its customers. Providing a wide range of products and services to meet all of the needs of its personal and business customers, including small business loans and checking and savings accounts.

We reached out to VISIONBank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • Offers the SBA 7(A) Loan Program, SBA Express and SBA Export Working Capital Program.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

5. Red River State Bank

Red River State bank started in 1887 as the First State Bank of Fertile in Minnesota. Now with two locations to meet the needs of its customers, Red River State Bank can provide products and services, including business and agricultural loans as well as personal banking products and services.

We reached out to Red River State Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

Other resources for small businesses in North Dakota

A number of resources exist to help companies build their success. Often, these are free resources designed to provide a wide range of support for companies from startup to growth.

One of the most valuable of these tools is the Small Business Administration in North Dakota. It can offer help with lending, but it also provides resources for building business credit, securing contracts, hiring employees, and even managing disasters. There are local offices available that can provide more hands-on support, but there is also a lot of information and tools available right on the organization’s website that are free to use.

Another valuable organization is SCORE. It was designed to allow experienced and successful business owners to help support and guide new companies, providing a way for companies to reach their objectives with guidance. It is possible to find local mentors to work with your company, as well as various tools, including webinars and informative guides online. There is no cost for these services either. A local office in Bismarck is one starting point though the website is also packed with resources.

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Joshua Holt

Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.

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