Flex PACE Program
The PACE family of programs at BND is designed to encourage specific types of economic activity within the state of North Dakota. In general terms, PACE provides an interest buy down that can reduce the borrower’s rate of interest by as much as 5%.
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.
Job creation is not a requirement of Flex PACE, but jobs will be tracked for informational purposes.
Flex PACE Funding
The cumulative amount of PACE funds available per biennium under Flex PACE to a North Dakota community or an individual borrower will be determined by the Bank's Investment Committee. BND will provide up to $100,000 of Flex PACE funds for regular projects, $500,000 of Flex PACE funds for Affordable Housing Projects and up to $300,000 for Licensed Child Care Projects.
Existing PACE program parameters (ex. interest rate buy down maximum, community match, community percentage factors, BND participation amount, default) apply. The community now has the option of meeting its matching requirement in the form of a contribution of direct cash, loans, equity, investments, land, property, or infrastructure. Each may count towards the community's funding of its portion of the buydown. Property tax exemptions or payments in lieu of property taxes are not eligible as community contributions for the purpose of the PACE Program.
For more information please contact us at:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
800.472.2166 ext. 328.5777