Interest Rate Buydown
The Bank of North Dakota (BND) offers a PACE program and Flex PACE program that provides an interest buydown that can reduce the borrower’s rate of interest by as much as 5%.
Pace Program
The PACE Fund helps communities expand their economic base by assisting Primary Sector businesses that make an investment or create jobs in their community.
Eligibility
- The borrower must be a primary sector business as defined by NDCC 1-01-49 (PDF) and certified by the North Dakota Department of Commerce.
- A primary sector business is an individual, corporation, limited liability company, partnership or association which through the employment of knowledge or labor adds value to a product, process or service that results in the creation of new wealth.
Guidelines
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The PACE Fund combines the resources of the local community and the PACE Fund to buy down the interest rate on the loan.
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The BND buydown is based on either the total investment OR the number of jobs created. The first three years of job creation will be considered in the allocation.
Bank of North Dakota PACE Program
Mandan Growth Fund Interest Buydown Guidelines
Flex Pace Program
Flex PACE allows communities the ability to provide assistance to businesses that do not meet the primary sector definition of PACE. In addition to this program, specific Flex PACE options have been developed for childcare facilities and affordable housing projects. No job creation is required for any Flex PACE Program options.
Eligibility
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The borrower can be any person or entity whose business is located in the City of Mandan. This may be an individual, corporation, limited liability company, partnership, association or any combination of these if there is common ownership.
- The business needs to meet the needs of the city of Mandan. Applications will be determined by staff prior.
Please email the Business Development & Communications Department for assistance or questions regarding eligibility.
Guidelines
The Flex PACE Fund combines the resources of the local community and the PACE Fund to buy down the interest rate on the loan.- Community Percentage:
Currently, the City of Mandan’s level is 35% of the total buy down cost with the BND providing the remaining 65%. BND sets the match requirement on an annual basis.
- Buydown Guidelines:
- Flex PACE provides interest rate buydowns up to these maximums:
- $200,000 per project for businesses
- $300,000 per project for child care
- $500,000 per project for affordable housing. The maximum buydown is $500,000 per biennium per per borrower.
- The interest rate to the borrower may be as much as 5.00% below the rate on the promissory note, but not less than 5.00% below Prime with a floor of 1.00%.
- The community may meet its matching requirement through direct cash, loans, equity, investments, land, property or infrastructure, and any combination of these.
Bank of North Dakota Flex PACE Program
Mandan Growth Fund Interest Buydown Guidelines
Application
Mandan Growth Fund Interest Buydown APPLICATION
Standard applications for Flex PACE should be submitted to the Lewis and Clark Development Group (LCDG) for consideration.
Requesting Support from the City of Mandan for an Interest Buydown Guidelines