McKenzie County JDA Interest Buy Down Loan Program
This fund exists to diversify & grow the local economy and grow the local tax base for public benefit. It is an interest buy-down loan program that meets the guidelines for Bank of North Dakota’s (BND) required local match.
Requirements
- A lead lender who will successfully apply to BND’s Flex Pace / PACE
- BND PACE Fund: https://bnd.nd.gov/loans/business/pace-program/
- BND Flex PACE Program: https://bnd.nd.gov/loans/business/flex-pace-program/
- A lead lender commitment
- Initial project consultation and review with the Small Business Development Center
- Completed Business Flex Pace / Pace Match Grant Program Application Form
- Operations must be within McKenzie County. For projects inside the City of Watford City limits, the Rough Rider Fund is to be used.
The total buy-down amount for both Flex Pace and Pace interest are based on total project investment and average annual salary. BND’s program grid scores cap interest buydown participation at:
- $300,000 for businesses (1/3 local, 2/3 BND)
- $450,000 for childcare (1/3 local, 2/3 BND)
| Economic Impact Scoring Matrix | Max Value per Category |
|---|---|
| Project Size
Up to $750,000 | –
$25,000 |
| Average Annual Salary
$50,000+ | – $20,000 |
| Community Impact
The JDA Board reserves the right to take the project to the BND maximum based on its determination of the project’s community impact. Generally speaking, no more than 10% of the total project cost will be funded unless determined by the JDA Board. | Variable |
To qualify for financing of property, the property must have at least 51% owner occupancy.
All projects approved by the McKenzie County JDA will be tracked with the record and reporting of Tri-County Regional Development Council’s commitments, dispersals, and project status.
The procedures will provide periodic feedback and updates on the status of fund projects. The JDA director will ensure that project tracking and reporting expectations are established with applicant prior to fund disbursement as agreed upon by project applicant and JDA Board.
(*) Projects for which McKenzie County Job Development Authority assistance is granted must be set to proceed or be in process at the time of the award of the assistance. McKenzie County JDA may rescind the award of assistance for that project with prior communication with the applicant when the project doesn’t start within six months of award or stalls without plan for completion.
(*) Projects must comply with all county ordinances and be current with any property taxes prior to fund dispersal.
CLIENT CONFIDENTIALITY & INFORMATION DISCLOSURE
North Dakota law provides that certain economic development records and information are generally exempt from the “Open Records” laws which are found in Chapter 44-04 of the North Dakota Century Code. This means that the McKenzie County JDA can protect applicant’s trade secrets, commercial information, financial information, and possibly other project related information from public disclosure. However, please be advised that the general rule in North Dakota is that records in the McKenzie County JDA’s possession are open to the public when requested by a member of the public.
The economic progress data provided by the applicant to SBDC through ND SBDC Client Impact/Progress Report (Rev 08.21), de-identified and aggregated, will be provided to the McKenzie County JDA office by SBDC. Again, this is done in aggregate and will not identify you or your business / project. This is done to provide economic development impact data of those grant funds to analyze pubic benefit.
For additional information or questions, contact Daniel Stenberg at 701-444-8856.
Program updated by JDA Board: May 2025 Next Review: January 2026
