Packet Digital lands $5M state loan for Fargo drone battery plant
What's the deal? Packet DigitalDealroom has a profile for this one. Try Dealroom → has secured a $5 million loan from the North Dakota Development Fund to help finance construction of its Badlands Batteries drone battery manufacturing plant in Fargo. The debt was approved as part of a $6.3 million package for four state businesses, announced on October 27.
Who else got funded? The other three loans went to S & D Holdings ($925,000 to buy a child care facility), Vertical MaltDealroom has a profile for this one. Try Dealroom → ($325,000 for working capital tied to its North Dakota relocation and expansion), and Prairie Education Group ($95,000 for inventory and working capital).
Why Packet Digital stands out The $5 million is the largest slice by far, and it layers state money onto a bigger federal push. The Fargo battery operation has drawn a $27 million Navy contract and a $9.8 million Navy award this year, and the plant opened in October.
The bigger picture Together the four projects represent roughly $102.3 million in combined project costs. The fund, established in 1991, lends to firms that may struggle to secure financing through traditional lenders.
What could go wrong? The announcement lands amid scrutiny of the Development Fund's finances. The North Dakota Ethics Commission voted on October 28 to open an inquiry into the fund's conflict-of-interest controls, after an audit flagged nearly $4 million in financing tied to two board members with insufficient documentation. The inquiry does not establish that any violation occurred.
The signal: This is a mixed local-development package — manufacturing, child care, malt, and retail inventory — rather than a venture-funding trend. But the Packet Digital loan shows how state debt is being used to anchor defence-linked manufacturing already backed by federal contracts.
Read more: am1100theflag.com
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