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Bowman County Development Corporation Featured Program: Flex PACE & PACE Programs
November 05, 2014
The Flex PACE Program is an opportunity to encourage economic activity and support qualified business growth. For qualified businesses, PACE provides an interest buy down that can reduce the borrower’s rate of interest by as much as 5%. Cooperation among the business' lead lender, the Bank of North Dakota, and the community are key in allowing this option for new and growing businesses.
The Flex PACE and PACE programs provide an interest buy down to borrowers. Under Flex PACE, the community determines eligibility and accountability standards and PACE eligibility is dependent on such things as jobs retention, technology creation with no new jobs, retail, smaller tourist businesses and essential community services.
Application by a lead lender is required for BND's participation. The second element of the PACE Fund combines the resources of the local community and the PACE Fund in buying down the interest rate on the loan. Bowman County’s communities have been set at the following participation levels for 2014; Bowman 65%, Scranton and Rhame 80%.The community's portion funds may come from a local development corporation, contributions, community funds or other community sources in the form of a grant or a loan. 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. The PACE Fund may provide an interest rate buy down up to a maximum of $300,000. 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. In all cases, the buy down is matched by the community at the designated participation level. .
In addition to the Bank of North Dakota’s requirements, Bowman County Development Corporation has outlined additional qualifications and requirements for participating in the PACE or FLEX PACE program, you can find those additions at the end of this article.
If you are interested in this program and application, further details can be attained by visiting the Bowman County Development Corporation and by visiting The Bank of North Dakota's Website.
Bowman County Development Corporation's PACE/Flex PACE Guidelines:
• Applications for Flex PACE buy downs must be made within the first 12 months of starting business operations or business expansion.
• As of 09/09/2013 all approved applicants will be required to payback 100% of the community portion of the interest buy-down. No payback will be required for the BND portion of the interest buy-down. Payments will begin at the end of the buy-down term. Terms for payback are negotiable up to 5 years and may be made on a monthly or quarterly basis.
• Business Plans are required showing both an executive summary and financial projections for the project.
• Maximum Flex PACE buy down for a term of five years if funds are available. Terms for PACE projects will be evaluated on an individual basis.
• Retail, service and hospitality businesses will be given priority over other projects making Flex PACE applications, special focus will be put on businesses having great economic or social impacts. PACE funds are only available for primary sector or value-added businesses.
• All applications are evaluated on a case by case basis.Back