The PACE Fund assists North Dakota communities in expanding their economic base by providing for new job development.
This program has two major elements: (1) participation by BND with a local lender in a community based loan, and (2) participation by the PACE Fund with the local community in reducing the borrower’s overall interest rate.
The borrower can be any person or entity whose business is in manufacturing, processing, value-added processing and targeted service industries. Targeted service industries are businesses involved in data processing, telemarketing, telecommunications, major tourist attractions, holding companies involved in leasing assets to entities otherwise defined as a PACE qualified business, and all other service companies and wholesalers that generate 75% or more of their sales outside of the state of North Dakota.
A holding company may qualify provided the benefit of the PACE buydown flows through to the lessee. The lessee will be responsible for satisfying the job creation requirements of the program. If no less than 40% of the space is used by the PACE qualified business, the entire requested loan amount for the facility will be deemed as a PACE qualified project, subject to all other requirements of the program.
There are no maximum loan parameters for borrowing under this program.
Use of Proceeds
The proceeds of a loan may be used to purchase real property, equipment and certain working capital requirements. The program cannot be used to refinance any existing debt or for relocation within North Dakota.
The borrower shall demonstrate that within one year there will be a minimum of one job created and retained for every $100,000 of total loan proceeds. Otherwise, the interest buydown will be prorated to reflect any partial fulfillment.