With the Grand Forks Region EDC’s assistance, you will have access to incentives, support programs and resources to help your business expansion or start-up to succeed in the Greater Grand Forks region. The EDC will work closely with you to package your financing to ensure optimal support. Put North Dakota’s favorable tax climate and economic vitality to work for you.
The City of Grand Forks, through its Jobs Development Authority, and the state of North Dakota, have a long history of effectively supporting business expansions. These financing partners will collectively structure a financing package, in cooperation with a lead lender, to support your financial needs and help position you for success.
The Grand Forks and North Dakota Advantage
- Community offers locally-managed incentive programs for business expansion
- North Dakota has a business friendly tax climate, ranking third when indexed against other states.
- Landmark tax relief – since 2009, taxes have been reduced by more than $2.4 billion
- No inventory or francise taxes
- Lowest workers’ compensation rates in the U.S.
- The only state-owned and operated bank, with assets exceeding $6.5 billion
EDA Revolving Loan Fund
Businesses may receive a low-interest loan, up to $500,000, through the Grand Forks Growth Fund, for working capital or to purchase machinery, equipment, and real property in Grand Forks County. Federal requirement may apply to loan eligibility.
Serviced by a local lender, the loan carries an interest rate equal to the equivalent term U.S. Treasury Note rate plus .25 – .5 percent. You must have a “BBB” rating or letter of credit to qualify. There is no maximum loan amount and teh loan term varies up to 15 years.
ND Development Fund
This fund provides gap financing to primary sector businesses through loans not available from most conventional lenders. Loan funds may be used for real estate, equipment and working capital.
Through the Participating in Assisting Community Expansion (PACE) program, the Grand Forks Growth Fund may provide a no-interest, deferred loan up to $161,000 to leverage a Bank of North Dakota grant up to $300,000 to collectively reduce the interest paid on a loan used to acquire land or equipment or for working capital. Projects considered for PACE are those that result in the creation of new jobs.
For companies that do not fit the traditional definition for the PACE program, FlexPACE may be an option. The Grand Forks Growth Fund may provide a loan up to $53,800 to leverage Bank of North Dakota support up to $100,000.
Corporate Income Tax
The state of N.D. may abate taxes for 5 years on increased income realized from a new or expanding primary sector business that produces new wealth in the state. *
The state offers an exemption ot purchase non-replacement computer and telecommunications equipment integral to operating a new or expanding primary sector business.*
Equipment for manufacturing, agricultural processing or recycling may qualify for a sales and use tax exemption. The expansion must increase production volume, employment or types of products to be manufactured/processed.*
The City of Grand Forks has an approximate commercial/industrial trax rate of 1.9 percent of land and building market value. The City of Grand Forks may consider a five-year declining abatement on the incremental value for new or expansion construction for primary sector businesses. Approval, which may take up to 60 days, must be obtained before the project begins.*
Companies conducting new, qualified research in North Dakota may qualify for tax credits of 25 percent for the first $100,000 and 8 percent for amounts exceeding $100,000. Credit may be carried forward and/or transferred.
A tax credit may be available for companies that employ extraordinary recruitment methods to recruit and hire employees for hard-to-fill positions.
(*) North Dakota Department of Commerce designation as a primary sector company is required prior to receiving the benefit.
This state-funded program assists employers to retrain and upgrade training to support the introduction of new technologies and methods into the workplace. Among uses that may be considered for the program are training for permanent jobs which have significant career opportunities and require substantive instruction or new employee training for an expansion or start-up.
New Jobs Training
This fund may offset the cost of training for newly hired employees for a primary sector business expansion or start-up. Funds are made available through the capture of the state income tax withholding generated from permanent, full-time new positions. Approval must be obtained prior to hiring.
Companies may also qualify for federal Work Opportunity Tax Credit and On-the-Job Training programs.
New Venture Capital Fund
An innovative program that provides flexible financing through equity investments to early stage companies that have completed product development and have established market acceptance. The program may invest up to $300,000 with appropriate capital structures.
Companies that expand into the Grand Forks designated Renaissance Zone may qualify for state and local incentives for five years to purchase, lease or improve real estate property within the zone.
Red River Corridor Fund
This fund may provide small businesses a credit guarantee and/or angel investment, providing greater access to capital and minimizing a bank’s risk for loans to support a company’s growth.