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Starting or expanding a business can be a real challenge. The challenges range from choosing the best location, equipment, or employees, to securing the financing you need. Bank of North Dakota offers a number of programs which are specifically intended to make your bank financing easier to access, and less expensive.
In participation with a local financial institution, BND's loan programs
are available to fund the purchase of real estate or equipment, as well
as to finance operating funds to carry the cost of inventory and accounts
receivable.
The Business Development Program is available to assist the beginning or expanding business that has funding
needs. This program also allows refinancing of debt. BND offers attractive,
variable and fixed rate options under this program.
The Beginning Entrepreneur Guarantee Program is a second option intended to help the beginning business person. The
Guarantee Program will provide an 85% guarantee to a financial institution
willing to make a loan to assist in the start-up or expansion of a business
enterprise. The loan amount may not exceed $100,000.
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 was expanded to include two new programs with similar traits to the PACE program. Flex PACE was designed to provide interest buy down to non-PACE qualifying businesses where the Community determines eligibility and accountability standards. Flex PACE targets essential community businesses without the job creation requirement.
Biofuels PACE (Biofuels Partnership in Assisting Community Expansion) was established
to buy down the interest rate on loans to biodiesel and ethanol production
facilities and livestock operations facilities.
Commercial Bank Participation is founded on principles that all loans should serve legitimate credit
needs of the State and be made on a sound and collectible basis. BND will
consider a broad range of loan applications. Specific equity requirements
have not been established. Each loan will be reviewed on its own merits.
Adequate collateral will generally be required to protect the interest
of BND.
The New Venture Capital Program is an innovative financial program that provides flexible financing through
debt and equity investments for new or expanding businesses in the state
of North Dakota.
For the ND farmer or rancher seeking to integrate a business or non-traditional agricultural activity into his or her operation, the Ag PACE Program provides low interest financing.
The BND links provide other sources of financial and technical assistance to help you in developing your business. They have the resources to help you deal with some of the other challenges that face your business.
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