Everything You Need to Expand or Relocate

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 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.

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.

Intern GF

• This local program is a partnership with the University of North Dakota to provide EDC investors or early-stage companies matching funds up to $3,500 for new internships. This may be paired with a state program, Operation Intern.

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.

Federal Programs

• Companies may also qualify for federal Work Opportunity Tax Credit and On-the-Job Training programs.

Operation Intern

• https://www.workforce.nd.gov/workforce/OperationIntern/

Entrepreneurs with an idea for a new business that’s not quite ready for conventional financing may qualify for seed funds that can provide the spark needed to jumpstart innovative ideas. The City of Grand Forks supports local business start ups in many ways. This innovative loan, which may be matched by the state-owned Bank of North Dakota, is the state’s first local entrepreneurial seed capital fund of its kind.

• StartUp funds can be used for:
  • New product proof of concept
  • Equipment purchases
  • Training costs to scale up a new product
  • Legal and accounting services
• Loan parameters
  • Personal guarantee is not required
  • Loans of $7,500 – $30,000
  • Business contribution equal to 25% of loan
  • 1 year payment deferral
  • 3 – 5 year term
  • 5% interest

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.