It is not that often that we look to North Dakota as a model for small business loans but the successes of the state’s banking system has spurred other states to take notice. Of all the 50 states in our country, North Dakota is the only one with an official state bank.
The Bank Of North Dakota was founded in 1919 and as the official state bank, all state run agencies are required to bank with them. The bank then serves as the hub of local development by making small business loans, farm loans and other economic development projects. The fact that North Dakota is the only state without a budget deficit since the credit crunch began, has political rabble-rousers from around the country demanding their state’s look into such a system.
There are a lot of factors in play for North Dakota which may be leading to their budget surplus and low unemployment and mirroring their state run bank may not work so well in other areas. Nevertheless, several states have formed committees to do feasibility studies on the subject and within a few years we may other states following suit.
But critics of such measures have some very valid points. The fact that North Dakota has the only state run bank in the Union does not mean they are the only state on the ball. Every state has had the option to introduce legislation and chosen not to. The main reason is that they do not see a need.
The truth is that a state run bank may sound like a good idea, but those claiming they need the state’s help securing favorable small business loans are not going to be good candidates for borrowing anyway. Attractive business borrowers have access to capital in North Dakota and the rest of the country within the private sector. In fact small business loans may be easier than ever to get for start-ups and low dollar borrowers.
North Dakota’s Banking success is very impressive but not really scalable. Local businesses who are able to get business loans from the Bank Of North Dakota are viable candidates at any bank. It is the other borrowers, who may require some creative financing options, which are the ones that need the most help. Legislation and exploratory committees not necessarily the cure the economy.
If you are looking for a small business loan and have not yet established business credit, now is the perfect time to obtain financing. Fewer small business borrowers are looking to banks, state run or not, for loans. The funds with favorable terms are simply not there for most borrowers. Programs like Seed Capital, help put new businesses, franchises and undercapitalized outfits in position to get unsecured business loans with very favorable terms.
All it takes is a free application and any business will find out if they qualify for these type of small business within just a few days. The process is simple and there are programs available for nearly every business type. So if you are in North Dakota, or anywhere else, apply for your small business loan today.