Fargo, ND (PressExposure) August 22, 2011 -- The City of Carrington is leading a state-wide effort called the Red River Corridor Fund (RRCF) to mobilize $13 million in federal funding to help North Dakota small businesses access capital to support the growth of small business, creating new jobs. Currently, 8 cities have signed on as co-applicants and numerous other cities have expressed interest in joining the program designed to leverage more than $130 million in capital in the form of angel funding and credit guarantees for all types of business.
The Red River Corridor Fund will provide oversight and fulfill this mission over the life of the program. Carrington has partnered with Praxis Strategy Group (Praxis), and national firm Development Capital Networks (DCN), supported by DCN's affiliate, Cimarron Capital Partners to implement the program, with funding through the State Small Business Credit Initiative ("SSBCI"). SSBCI was created by the Department of Treasury through the Small Business Jobs Act of 2010 passed by Congress in September of last year.
"We think it's imperative to not only pick the best team to design and implement this program, but equally important is to be consistent with the mission and spirit of the federal program which is to expand economic opportunities for all North Dakota entrepreneurs, "explained Don Frye, Mayor of Carrington. "The Red River Corridor Fund program is committed to fulfilling this mission by deploying, capturing, and redeploying capital much like an endowment. In this way, North Dakota entrepreneurs of both this generation and the next can count on tapping this resource to help their enterprises grow and make a big impact on job creation."
The program will not only help existing businesses operate and expand, but also help attract new businesses to the state, according to Dave Roby, Chief Operating Officer of Praxis. Roby explained that because the program requires matching funds, it will engage investors currently sitting on the sidelines.
Other North Dakota organizations and communities have demonstrated strong support for the initiative including the Center for Innovation, economic developers, and community leaders from around the state. The deadline for signing on to the program is Sept. 27, when the final proposal is due to the Dept. of Treasury. Any cities that are interested in participating should contact Dave Roby, at 701-499-2111.
Carrington has been recognized as the most dynamic community in North Dakota with a population under 2500. This community is progressive and positive and committed to growth and development. The community leaders have recognized the need to collaborate with public and private organizations and the entire community to develop and support a full-time community coordinator position to direct the city's efforts for economic and community development.
The community of Carrington is dedicated to providing opportunities for people and businesses alike by collaborating, cooperating and committing time, resources and leadership to make Carrington a place where everyone is welcome and wants to live and work. We offer incentive packages, a safe and friendly community and a quality work force.
About Development Capital Networks:
For over 15 years, DCN has provided specialized products, management and training to development associations and entrepreneurial networks relevant to our expertise in Regional Economic Development, Technology Transfer, Development Finance, Entrepreneurship, and Capital Formation. Our services enhance our partners' efforts to commercialize new technologies, attract capital for business development, invest capital in entrepreneurial ventures, and build communities with development finance and advanced business skills.
DCN specializes in strategies that build regional innovation economies. DCN principals and affiliates have created and managed successful loan and investment programs similar to the SSBCI program and currently manage over $280 million for institutions in Oklahoma, Arkansas, and Iowa. DCN has delivered training to angel investors in over 100 communities in the U.S. and produces the annual WBT Innovation Marketplace, the nation's largest networking and "deal" event for seed stage companies seeking to commercialize new technologies.