Interest Buy-Down Program
Flex PACE
Eligible Projects:
- Businesses
- Childcare facilities
- Affordable housing projects
Interest Buydown Amount:
- Up to $200,000 for businesses.
- Up to $300,000 for non-residential childcare projects, new or expanding.
- Up to $500,000 for new affordable multi-family housing units.
Usage:
- Funds can be used to purchase real property, equipment, and certain working capital needs (excluding debt refinancing or relocation within ND).
Community Match:
- The local community will match the buydown amount at a designated level set by the Bank of North Dakota.
PACE
Eligible Projects:
- Primary sector businesses, as defined by NDCC 1-01-49 and certified by the North Dakota Department of Commerce.
- For businesses that create new wealth by selling products or services outside North Dakota or offering previously unavailable products or services within the state.
Interest Buydown:
- Helps expand the economic base by assisting businesses with job creation and investment.
Usage:
- Funds can be used to purchase real property, equipment, and certain working capital needs (excluding debt refinancing or relocation within ND).
Tier-Based Funding:
- Determined by the number of jobs created.
- Up to $500,000 per biennium per borrower.
Ag PACE
Eligible Projects:
- Non-traditional agricultural activities for farmers and ranchers.
- Manufacturing.
- Processing and value-added processing.
- Targeted services industries.
Agriculture Diversification and Development (ADD) Fund
Eligible Projects:
- Food production and processing facilities.
- Feed or pet food processing facilities.
- Commodity processing facilities.
- Agriculture product manufacturer.
- Animal production facilities.
Envest:
Eligible Projects:
- Purchase shares in ag processing plant intended to process North Dakota products.
- Purchase of equity shares in a North Dakota feedlot or dairy operation that feeds a byproduct of an ethanol or biodiesel facility.
For more information on Ag PACE, ADD, or Envest please contact Dunn County JDA.
Program details:
Payback Terms:
- Borrowers may qualify for the full eligible buydown as allowable by the Bank of North Dakota.
- If the borrower remains in good standing on the payback, Dunn County JDA may grant the last $5,000 of the community payback.
- There will be no interest on the community payback.
Application and Approval Process:
- Applications must be made within the first 12 months of starting business operations or expansion.
- A detailed business plan, including an executive summary and financial projections, is required.
- Applications can be made through the Dunn County JDA and will be reviewed by the full board.
- The Dunn County JDA Board will review and approve applications based on community needs and the impact of the business.
Funding and Repayment:
- Approved applications will be required to repay 100% of the community portion of the interest buydown.
- No repayment is required for the Bank of North Dakota portion.
- Repayment begins at the end of the buydown term and must be completed within the negotiated terms.
Repayment Schedule:
- Amounts under $25,000: Repayment over 60 months following the buydown term.
- Amounts over $25,000: Repayment between 6-10 years, depending on the amount.
Funding Terms:
- Maximum Flex PACE buy down for:
- 5 years on business and equipment.
- 10 years on real estate, if funds are available.
- PACE project terms will be evaluated on a case-by-case basis.
Funding Frequency:
- Businesses or organizations may apply for funding once per calendar year.
Terms and Conditions:
- Applicants will be required to sign a Business Incentive Agreement and Payback Agreement acknowledging compliance with the program's terms and conditions.
- Application to the program does not guarantee funding.
- Dunn County JDA will have the authority to approve, disapprove, or make changes as necessary.
- Dunn County JDA reserves the right to request additional information as needed.
APPLICATIONS: