Commerce Boosts North Dakota Economy through Advance ND Program
November 27, 2023
The North Dakota Department of Commerce introduces the Advance ND Program, an initiative geared to provide "deal-closing" loans to companies in North Dakota considering new industrial projects in value-added energy, agriculture, and manufacturing. To qualify, the company must be considering another state in the site selection process.
“Advance ND will serve as a financial incentive for those companies whose projects would contribute significant capital investment, add value to North Dakota resources, and provide new employment opportunities to the state’s economy,” said Jessica Tooke, North Dakota Development Fund CEO at Commerce.
Funding Mechanism and Structure
Administered through the North Dakota Development Fund (NDDF), the program features interest-only balloon loans converting to fixed-rate term loans. Highlights include:
| Amount | Up to $1,000,000 per $50,000,000 of total project capital expenditure, with a $10 million cap per company. |
| Project Criteria | Minimum $50,000,000 in total project capital expenditure. |
| Use of Funds | Allocated for working capital, permitting costs, engineering, and equipment. |
| Interest Rate | Initially set at WSJ Prime +_ %, retroactively adjusted to a 2% fixed rate once the project is operational. |
| Term | Dependent on the timeline to operations. |
| Payment | Monthly interest-only payments. |
| Security | Personal guarantees (20% or greater ownership), corporate guaranty from the parent company (if applicable), and a lien on all business assets. |
| Conditions | In case of project abandonment before becoming operational, the loan will be called due and accrue interest until fully paid. |
