# Small Business Loans in North Dakota

> North Dakota's economy runs on agriculture and Bakken energy, but its fastest-growing companies are increasingly in Fargo's tech and manufacturing corridor. Hoss Capital matches North Dakota business owners with funding partners that actively lend across the state, from Fargo and Bismarck to Grand Forks and the oil patch out west.

## Key takeaways
- North Dakota's HB 1127 (effective August 2025) lets the Department of Financial Institutions designate 'alternative financing products' such as MCAs as loans subject to money-broker licensing, a 36% rate cap, and TILA-style disclosures—but only once it issues a designating order, so for now sales-based financing stays outside those rules.
- The economy runs on agriculture and ag-tech, Bakken oil and gas, and a growing Fargo technology and advanced-manufacturing scene.
- A single SBA district office in Fargo serves all 53 counties with 7(a), 504, and microloan programs.

## Funding the North Dakota economy

North Dakota is a small-population state that punches far above its weight
economically, thanks to abundant farmland and the Bakken oil play. That mix
creates demand for two very different kinds of capital: patient, seasonal
financing for agriculture, and fast, flexible funding for the energy supply
chain and the service businesses that grow alongside it. Hoss Capital works with
partners who understand both rhythms.

### Industries we fund across North Dakota

- **Agriculture & ag-tech** — equipment loans and operating lines that bridge
  the gap between planting season and harvest revenue for growers around the
  Red River Valley.
- **Oil & gas services** — working capital and equipment financing for the
  trucking, water, and field-service firms supporting the Williston Basin.
- **Manufacturing** — term loans and equipment financing for Fargo-area ag
  equipment makers and fabricators.
- **Healthcare** — practice financing and build-outs in Bismarck, Fargo, and
  Grand Forks.
- **Technology** — revenue-based financing for Fargo's growing software and
  startup community.

### What HB 1127 means for you

North Dakota tightened the framework around business financing in 2025. HB 1127
amended the Money Brokers Act so the Department of Financial Institutions can
treat "alternative financing products" — potentially including merchant cash
advances and factoring — as loans subject to licensing and a 36% rate cap, once
it issues an order to do so. For now, no such order has broadly designated those
products, so MCAs and factoring still operate under general commercial law.
Practically, that means North Dakota owners should still ask any funder for the
full dollar cost, the total repayment amount, and the payment schedule in
writing before signing. Hoss Capital only works with partners who operate
transparently, and you should watch for future DFI guidance as the state's
approach evolves.

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Canonical: https://hoss-capital.pages.dev/locations/north-dakota/

Sources:
- https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1127.html
- https://ndlegis.gov/assembly/69-2025/regular/documents/25-8110-04000.pdf
- https://www.sba.gov/district/north-dakota
- https://www.mayerbrown.com/en/insights/publications/2025/06/north-dakota-broadens-licensing-law-to-include-alternative-financing
- https://debanked.com/2025/05/north-dakota-law-regulates-alternative-financing-as-a-loan/