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Low-cost Capital & Siting grants | Tax abatements | Small
Business Development Center Programs | SBCD
Staff
Tax abatements, Low-cost capital,
Zero-cost grants, Paid workforce training and more will give your business the
running start that puts you ahead of the competition. In Southwest North Dakota,
we will be your partners in success.
Stark Development Corporation has a number of tools available to reduce the
cost of capital necessary to start up, expand or relocate your primary sector
business to Southwestern North Dakota. By blending programs available from
State agencies, our State-owned bank, and other resources, attractive long
term rates have been realized for a number of companies.
We strongly believe we are not in the business of creating paperwork, just prepare
your business plan and leave the rest to us. Don't forget to ask us about the
possibility of siting grants that will significantly reduce your start-up costs
and preserve capital for operations.
PACE Low Cost
Capital Program
(Partnership
in Assisting Community Expansion)
The PACE Fund is designed to assist North Dakota communities
in expanding their economic base by providing for new job development.
This program has two major elements: (1) the participation by Bank of
North Dakota (BND) with a local lender in a community based loan, and
(2) the participation by the PACE Fund with the local community in reducing
the borrower's overall interest rate.
Qualifying Requirements
Borrower - The borrower can be any person or entity whose business is in manufacturing,
processing, value-added processing, major destination tourist attractions,
and targeted service industries. Targeted service industries are businesses
involved in data processing, telemarketing, telecommunications and major destination
tourist attractions.
Loan Limit - There are no maximum loan parameters for borrowing under this
program.
Use of Proceeds - The proceeds of a loan may be used for the purchase of real
property and equipment and certain working capital requirements. The program
cannot be used to refinance any existing debt or for relocation within North
Dakota.
Job Creation - The borrower shall demonstrate that within the first year, there
will be a minimum of one job created and retained for every $75,000 of total
loan proceeds.
Variable or Fixed Interest Rate - Either a fixed or variable interest rate
may be used in the loan participation.
Participation Requirements - BND will evaluate all requests under this program
in the same manner as any regular bank participation. Therefore, qualifications,
such as equity, collateral, and information requirements is determined on a
case-by-case basis as outlined in the Participation Lending section of this
booklet.
Application Process
Application by a lead
lender is required for BND's participation. See application for additional
documentation required when submitting a request to BND. Lead lender is responsible
for servicing the loan.
Interest Rate Buy Down 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.
Community Percentage Factor - A percentage factor has been assigned to most
communities within the State. This factor determines the amount of the PACE
Fund's participation (65% to 85%) in the funding of the interest rate buy down.
This factor is based on four economic conditions (taxable sales and purchases,
employment, taxable valuation and population).
Buy Down Funding - The PACE Fund may provide an interest rate buy down up to
a maximum of $250,000. In all cases, the buy down is matched by the community
at the designated participation level described under Community Percentage
Factor. In addition, the PACE Fund's participation is limited to the amount
required to buy down the interest to the lower of 5% below the yield rate (Bank's
rate) or 3% below the national prime rate, whichever is lower, but in no event
may the interest rate be more than five hundred basis points below the national
prime rate. In no event shall the rate to the borrower fall below 1%.
Community Buy Down Funding - The community's portion of the buy down cannot
be funded in any way, directly or indirectly, by the borrower or any individual
or organization that has a financial interest in the borrower. The funds may
come from a local development corporation, contributions, community funds or
other community sources in the form of a grant or a loan. If the community
provides its share of the PACE interest rate buy down as a loan, repayment
of the loan shall not commence and no interest shall start to accrue until
the PACE interest buy down has been fully expended.
Transfer of Funds - A trustee shall be appointed to act as the transfer agent
for the buy down. Both the community and the PACE Fund will make periodic payments
to the trustee to cover the interest rate buy down.
Default by the Borrower - If the borrower is in default under the loan agreements,
the interest rate on the loan changes from the buy down rate to the original
higher interest rate. The borrower shall accrue interest at the higher interest
rate and all interest rate buy down funding is suspended until the loan is
brought current.
Failure of the Community to Fund - If the community fails to fund any portion
of its periodic payment, the PACE Fund's buy down payment shall continue and
shall be shared by the lenders in proportion to their participation percentage
in the loan. However, the community cannot apply for another PACE loan until
its original PACE loan has been brought current. The community must prefund
its entire portion of the buy down on any new loan prior to funding.
Fees
The lead financial institution may charge an origination fee of up to 1% of
the total loan amount, which shall be shared with BND. A minimum PACE origination
fee of $250 is charged by BND and may be included in the origination fee.
For more information about this program or other Bank of North Dakota programs,
contact:
Stark Development Corporation
PO Box 765
Dickinson, ND 58602-0765
(701) 225-5997
1-888-880-7963
North Dakota has one of the most favorable tax climates in the Nation for
your primary sector business.
PROPERTY TAX EXEMPTIONS for 5 years are available to any
new or expanding business. In addition to or instead of an exemption, local
governments and any project operator may negotiate payments in lieu of property
tax for a period of up to 20 years.
PERSONAL PROPERTY EXEMPTION. North Dakota has no personal
property tax.
INCOME TAX EXEMPTION up to five years for a new or expansion
project in a primary sector business.
WAGE AND SALARY TAX CREDIT based upon wages and salaries
paid.
SEED CAPITAL INVESTMENT CREDIT for investing in a business
certified by the Department of Economic Development and Finance.
NONPROFIT DEVELOPMENT CORPORATION INVESTMENT CREDIT for
contribution to a certified nonprofit development corporation.
VENTURE CAPITAL INVESTMENT CREDITS
RESEARCH EXPENSE CREDIT
DEDUCTION FOR SELLING OR RENTING TO A BEGINNING BUSINESSPERSON
JOBS TRAINING ASSISTANCE
SALES TAX EXEMPTION on purchase of manufacturing equipment
and agricultural processing plant construction materials.
Core Services
Needs Assessment
The Small Business Development Center’s needs assessment process helps
to target the kind of help a business owner needs. Counselors analyze a business’s
operations and identify the company’s strengths, weaknesses and opportunities.
That information helps ensure business owners get the expert assistance they
need. As a participant in the University Business Assistance Network and a
part of the Growing North Dakota initiative, the Small Business Development
Center is uniquely positioned to know the expert resources that are available
in the state that can help small business owners meet the challenges ahead
of them.
Training
Businesses never outgrow the need for continuing education. Owners, managers
and employees need to sharpen their skills to keep small business competitive.
The Small Business Development Center sponsors low-cost workshops, seminars,
and conferences aimed at providing continuing education in the latest business
techniques. We bring in national speakers as will as tapping the talent of
our excellent North Dakota instructors.
Counseling
The Small Business Development Center provides free individual counseling to
small business owners. Our job is one of guidance and education. We help business
owners identify the organizational, financial, marketing and technical challenges
they face and help them find solution to overcome them. Some of the areas where
our counselors provide guidance to small business include:
Computerized Database Research· Advertising
· Business plan development
· Loan applications
· Personal management
· Financial management
· Cash flow management
· Exporting
· Market research
· Business computers
· Record keeping systems
Ronald L. Newman
Small Business Development
Center Director
Dickinson State University
Dickinson , ND 58601
Office/Fax 701-483-2470
Email: Ronald.Newman@dickinsonstate.edu
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