Financing a New or Expanding Business

Our local banks and credit union can work with the Bank of North Dakota to help you with financing.  The Bank of North Dakota (BND) offers a number of programs that make financing easier to access, and less expensive.  BND has a variety of small business programs available. Listed below is a short summary of each.

  • The Business Development Loan Program assists new and existing businesses in obtaining loans that would have a higher degree of risk than would normally be acceptable to a lending institution.
  • Beginning Entrepreneur Loan Guarantee Program This program assists in business start-up financing by providing a financial institution with an 85% guaranty of a loan not to exceed $100,000.
  • The Ag PACE Program - (Agriculture Partnership in Assisting Community Expansion) provides interest buydown on loans to farmers who are investing in nontraditional agricultural activities to supplement farm income. The program funds are used to reduce the interest rate on loans which have been approved by a local lender and BND.
  • The PACE Program - (Partnership in Assisting Community Expansion) assists North Dakota communities in expanding their economic base by providing for new job development. The PACE program has two major elements: (1) the participation by BND with a local lender in a community based loan, and (2) the participation by the PACE Fund with the local community in reducing the borrower's overall interest rate.
  • Flex PACE Program Qualified Businesses - The Flex Pace feature of the PACE program provides interest buy down to borrowers that do not fit into the traditional definition of a PACE qualifying business. Under Flex PACE, the community determines eligibility and accountability standards. Flex PACE allows communities the ability to provide assistance to borrowers with a business focus or need outside of the current requirements of PACE, such as jobs retention, technology creation with no new jobs, retail, smaller tourist businesses and essential community services.
  • The Beginning Entrepreneur Loan Guarantee Program This program assists in business start-up financing by providing a financial institution with an 85% guaranty of a loan not to exceed $100,000.
  • Business Incentive Programs In partnership with an originating lender, BND takes a lead role in providing loan programs to encourage the creation of new wealth, expanded employment opportunities and farm income diversification.
  • 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 one new job in North Dakota for each $100,000 of total loan proceeds.
  • MATCH Program supports 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 five years, or may be reset annually.

For additional information about loans that the Bank of North Dakota supports, please see their website at:   https://bnd.nd.gov/