Fund moneys - Eligible uses
N.D. Cent. Code § 6-09.14-04
in effect6-09.14-04. Fund moneys - Eligible uses
1. The fund moneys may be used to participate in an interest rate buydown on a loan to a
new or expanding business for the following eligible uses:
a. Purchase of real property and equipment.
b. Expansion of facilities.
c. Working capital.
d. Inventory.
2. The loan funds cannot be used to refinance any existing debt or for the relocation of
the business within North Dakota.
3. The community shall determine the amount of the interest rate buydown and apply to
the Bank of North Dakota for participation from the partnership in assisting community
expansion fund. The funds for the community's portion of the buydown may come from
a local development corporation, contributions, community funds, future dedicated tax
programs, or any other community source.
4. The fund participation portion in the buydown must be determined by the Bank of
North Dakota based on economic conditions in the city or county in which the business
is located.
5. a. The maximum amount from the fund in the interest rate buydown may not exceed
five hundred thousand dollars per loan.
b. If the Bank determines the project has a substantial economic impact and
qualifies as a primary sector business, the maximum amount from the fund in the
interest rate buydown may be increased by up to one million dollars, in addition to
the amount under subdivision a, without a required community match.
6. The fund participation must be limited to the amount required to buy down the interest
to five hundred basis points below the national prime interest rate.
7. The Bank of North Dakota shall adopt rules to implement this chapter.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t06c09-14.pdf#nameddest=6-09p14-04Fetched: 10/16/2026