Everything You Need to Expand or Relocate

EDA Revolving Loan Fund

• Businesses may receive a low-interest loan, up to $400,000*, through the Grand Forks Growth Fund, for working capital or to purchase machinery, equipment, and real property in Grand Forks County. Federal requirements may apply to loan eligibility.

MATCH Loan

• 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. Loan amount is determined based on site of project. The term varies up to 20 years.

North Dakota Development 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.

*Dollar amount varies by year and by amount revolved back into the fund. 

PACE Loan

• Through the Participating in Assisting Community Expansion (PACE) program, the Grand Forks Growth Fund may provide a no-interest, deferred loan up to $269,000 to leverage a Bank of North Dakota grant up to $500,000 to collectively reduce the interest paid on a loan used to acquire land or equipment or for working capital. New job-creating projects are eligible for PACE funding.

Flex PACE

• Don’t fit the traditional definition for the PACE program? FlexPACE may be an option! The Grand Forks Growth Fund may provide a loan up to $107,000 to leverage Bank of North Dakota support up to $200,000.
  • Flex PACE Daycare
    • Licensed, non-residential child care projects in Grand Forks County may qualify for this targeted program intended to encourage retention and expansion of child care availability in the region. The Grand Forks Growth Fund may provide a loan up to $161,000 to leverage BND support up to $300,000.
  • Other PACE
    • Through the Bank of North Dakota, there are also PACE programs to support nontraditional agriculture activities as well as a program for biodiesel and ethanol production and livestock operations.

Corporate Income Tax

• The state of North Dakota 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.

Computer Equipment

• The state offers an exemption to purchase non-replacement computer and telecommunications equipment integral to operating a new or expanding primary sector business.

Manufacturing Equipment

• 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.

Real Estate

• The City of Grand Forks has an approximate commercial/industrial tax 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.

Research Expense

• 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.

Workforce Recruitment

• A tax credit may be available for companies that employ extraordinary recruitment methods to recruit and hire employees for hard-to-fill positions.

Get More by Growing in Grand Forks

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.

Renaissance Zone

• 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.