The North Dakota Industrial Commission on April 24, 2020 authorized the Bank of North Dakota (BND) to provide two financing programs to assist North Dakota businesses in obtaining long-term, low-interest loans to assist in the state’s economic recovery from the COVID-19 pandemic. The loan programs will help both small and large businesses to secure working capital and replenish inventory. The programs will be effective Wednesday, April 29, 2020.
The Small Employer Loan Fund (SELF) will provide a loan of up to $50,000 to small businesses with a full-time employee equivalent (FTE) of 10 employees or less. These loans may be used for working capital, recurring expenses and replenishing inventory. Business owners will work with their local lender to access the program. The loan has a maximum term of 10 years and a fixed interest rate of 1%, with deferral of loan payments for up to six months.
The COVID-19 PACE Recovery Program (CPRP) will provide a loan of up to $5 million for businesses of less than 500 employees and a loan of up to $10 million for businesses with more than 500 employees. Loan payments may be deferred for up to six months, at which time the loan will term out with up to a 10-year amortization. The interest rate on the loan will be bought down by BND to 1% for a period of time, with a maximum buydown of $500,000. Business owners will access the program through their local lender. Unlike other PACE program offerings from BND, there is no community match required.
To qualify, North Dakota businesses must have been established before Feb.15, 2020 and loan applications must be received before Nov. 30, 2020.
Please visit the websites below for further details:
Bank of North Dakota Business Loans
SELF Loan Fact Sheet
CPRP Loan Fact Sheet