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North Dakota is a great place to do business. The State has made a very
focused effort to build an economic environment that encourages business
growth and success. In partnership with an originating lender, BND has
taken a lead role in providing loan programs to encourage:
- the creation of new wealth
- expanded employment opportunity
- farm income diversification
The PACE Program is available to finance the purchase of equipment or real estate, as well
as term working capital. In conjunction with community support, the Program
provides an interest buy down that can reduce the borrower's rate of interest
by as much as 5%. This buy down can mean an interest savings of approximately
$462,000 over the term of the loan. In return, the borrower must create
1 new job in North Dakota for each $100,000 of total loan proceeds. The
PACE program has been expanded to include features outlined under FLEX PACE and Biofuels PACE.
The MATCH Program is designed to support the funding needs of a borrower whose financial
capacity is very strong. This strength must be evidenced by a long term
credit rating of A or better as determined by a national rating agency.
For the qualifying borrower, BND offers a rate of interest equal to .25%
to .50% over an equivalent term U.S. Treasury Note. The rate can be fixed
for as long as 15 years, or may be reset annually.
The Ag PACE Program provides incentive financing to encourage North Dakota farm families to
develop a business that can be integrated into the farming operation. Qualifying
borrowers receive an interest buy down that can reduce their rate of interest
by as much as 5%. This subsidy can mean an interest savings of approximately
$20,000 per biennium with a lifetime cap of $60,000 over the term of the
loan. State Water Commission Funds, not exceeding $20,000 per borrower
may be used to supplement Ag PACE funds for the purchase of irrigation
equipment on new irrigated acreage.
BND works with other North Dakota agencies, as well as local economic development groups in delivering financing and service to support economic development in the State. The BND links provide other sources of financial and technical assistance available.
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