Bank of North Dakota (BND) is the only entity of its kind in the nation – a state-owned bank dedicated to promoting commerce, industry and agriculture. The Bank offers numerous low-interest loan programs in collaboration with a lead lender to meet the financing needs of most any new or expanding business.
Partnership in Assisting Community Expansion
One of the most attractive programs is the Partnership in Assisting Community Expansion (PACE) fund, an interest buy down loan program that is available to primary sector business including manufacturing, data processing, communications, telecommunications and targeted service industries.
The PACE fund is designed to assist North Dakota communities in expanding their economic base by providing for new job development. The proceeds of a loan may be used for the purchase of real property and equipment and certain working capital requirements. The program cannot be used to refinance any existing debt or for relocation within North Dakota.
From July 1, 2001, to July 31, 2002, the PACE fund contributed $14,923,750.50 to 43 projects totaling $56,780,740.
The MATCH program is designed to encourage and attract financially strong companies, “A” rated or equivalent, to North Dakota. Loan funds may be used to finance real estate, machinery and equipment, and for the purchase or leasing of equipment.
The program targets manufacturing, processing and value-added industries. Through this program, BND will participate in loans to financially strong companies and provide interest rates at some of the lowest in the nation.
As of June 2002, the MATCH program had a funded and committed balance of $46,419,336 toward 12 projects totaling $110,348,000.
Beginning Entrepreneur Loan Guaranty
Bank of North Dakota’s newest program is the Beginning Entrepreneur Loan Guaranty. This program is designed to assist in business start-up financing by providing a financial institution with an 85 percent guaranty of a loan not to exceed $100,000.
As of July 31, 20002, the Beginning Entrepreneur Loan Guaranty program guaranteed $1,446,849 for 51 projects totaling $2,277,072
Bank of North Dakota