That’s the assessment Lewis & Clark Development Group Commercial Lending Director Matt Burthold offers when he looks back on the projects financed through the organization’s myriad of Revolving Loan Funds (RLFs) in 2023.
According to Burthold, LCD Group awarded loans in excess of $2.1 million to businesses throughout North Dakota.
The genius of RLFs is in their simplicity
Revolving Loan Funds provide access to capital as gap financing to enable small businesses to grow and create new job opportunities. By design, RLFs use a source of capital, typically offered by a local or state government, to make direct loans to borrowers. Proceeds from loan repayments flow bak into the fund and become available again.
LCD Group manages a number of RLF programs. The largest such fund is the North Dakota Opportunity Fund (NDOF). In 2023, twelve businesses received or have obligated loans totaling more than $1.7 million.
“The genius of Revolving Loan Funds is their simplicity,” says Burthold. “Repayments flowing back into the funds creates a constant revenue stream.”
A large reservoir
And those ‘streams’ flow into a very large reservoir. Over the recent years, 138 businesses have received more than $9.1 million in financing through LCD Group’s RLFs with the organization having another $4.7 million available to relend.
“Demand for financing through the RLFs we manage is always steady,” adds Burthold. “There is not much fluctuation from year to year, with the exception of 2020, which was an outlier in more ways than one.”
Burthold observes that businesses have mostly moved beyond the pandemic and many have adjusted to higher than accustomed interest rates.
“For us, two million dollars is simply a whole number. The numbers that matter are the thousands of dollars in each loan that allows a business to start, expand, and hire new employees. Revolving Loan Funds cause positive ripple effects in communities, which makes helping clients qualify and receive RLF loans so rewarding,” says Burthold.
2023 Client Success Stories
Here are some of LCD Group’s 2023 RLF success stories:
Cobra Components: NDOF helps couple grow their truss manufacturing business
Junkyard Brewery: Junkyard Brewery expands into West Fargo
Learn More: Click here for more information about LCD Group’s regional business programs or contact Matt Burthold at (701) 557-7601 or at firstname.lastname@example.org.