Devils Lake Growth Fund Programs
The City of Devils Lake funds a city Growth Fund with a percentage of the city’s sales tax for job and economic development. The Forward Devils Lake Executive and Advisory Boards determine the programs that are needed in the community and consider applications for the use of the funds that accumulate based on community need. A goal is to increase primary sector development, but other community needs are considered when needed. Applications must generally be approved prior to construction, building occupancy, or the start of business operations, depending on the program.
Bank of North Dakota Interest Buy Down Programs
Primary Sector Businesses are eligible to apply for a Partners in Community Expansion (PACE) loan program which utilizes a partnership between local financial institutions and the Bank of North Dakota through a participatory lending arrangement in which half of the loan amount is provided by a local lender and half by BND. Funds are used to reduce interest costs by up to 5% below the lead lender’s rate to a rate as low as 1%. The buy down must be matched by the community at a 30% participation level.
- For Primary sector projects that are eligible for the PACE program – BND will provide up to $500,000 for the interest buydown. This puts the maximum local share at $269,231 for a maximum total interest buydown of $769,231. The BND buydown is based through a tiered approach on either the business investment or the number of jobs created.
- Repayment of the local share is generally required at an interest rate dependent on the type of project and public benefit.
Non-Primary Sector Businesses are eligible to apply for a FLEX PACE loan program that we will be introducing to projects in the downtown Devils Lake revitalization area that will also utilize a partnership between local financial institutions and the Bank of North Dakota through a participatory lending arrangement in which half of the loan amount is provided by the local lender and half by BND. Eligible projects in the downtown Devils Lake area will be able to use the City’s investment in downtown infrastructure as an In-Kind investment to reduce interest costs by up to 5% below the lead lender’s rate to a rate as low as 1%.
- Eligible Flex Pace projects (Non-Primary Sector) that provide a community benefit are encouraged to apply soon as the total local In-Kind Infrastructure investment amount will be limited – BND will provide up to $52,500 for the interest buydown. This puts the maximum local share at $22,500 for a maximum total interest buydown of $75,000.
- Deadline of December 30, 2021 to get projects approved.
In 1999, the North Dakota Legislative Assembly approved the Renaissance Zone Act to provide tax incentives to encourage investment in downtown or other blighted properties. Existing and new owners of commercial and residential properties within an established 40 block area in the City of Devils Lake (see map below) may be eligible to receive property and state income tax incentives with a qualifying investment in a building purchase, new construction or rehabilitation. Businesses leasing space in buildings improved as Renaissance Zone projects may also be eligible for state income tax incentives.
- Up to 100% exemption from property taxes for 5 years
- 100% exemption from state tax on income derived from business or investment for 5 years up to $500,000 of taxable income
- Transferable exemptions with sale or lease
- Up to 100% exemption from property taxes for 5 years
- 100% exemption from state individual income tax up to $10,000 annually for 5 years
- Transferable exemptions with sale
Applications must be approved before improvements begin. A Renaissance Zone project must be approved by the Devils Lake Renaissance Zone Committee, the Devils Lake City Commission, and the ND Dept of Commerce before an eligible purchase, rehabilitation, new construction project or lease of the property begins. A certificate of good standing from the ND Tax Department is also required along with a business incentive agreement. Please allow one to two months for the review process.
Small Business Revolving Loan Fund
In October of 2019 Forward Devils Lake Corporation began a new revolving loan fund for new and expanding businesses that are or will be located anywhere within the Devils Lake Region. The loan proceeds may be used for building remodeling, equipment or inventory purchases as well as new product proof of concept and or sales/marketing needs.
- Loans of $5,000 to $20,000
- Business contribution equal to 25% of loan amount
- 6-month payment/interest deferral
- 3 to 7 - year term
- 5% - 7% interest rate depending on term
Your application will be reviewed by a committee of local chamber, community and business leaders who are committed to building a vibrant, diverse entrepreneurial community that supports each-others success in Devils Lake. The committee will look at established criteria such as existing business competition, likelihood of success, innovation and community need to help select the best candidates.
Façade Improvement Program
This program is an interest free loan that helps existing and new businesses to improve their store/business front. Some features of this program are listed below:
- $5,000, $7,500 or $10,000 interest free loan
- Loans to be paid back with minimum payments of $100, $150 or $200 depending on the loan amount per month until paid in full
- Payback term is 50 months
- Loan money received is put back into the fund to revolve.
- There is an application process which will include proposed drawings, before pictures, building permits, etc. before loan is approved for the business.
- Business needs to check with City Building Authority and the Devils Lake Historic Preservation Commission to determine if the plan is acceptable and meets requirements.
- Materials must be purchased locally if possible.
- Money to be disbursed on completed and agreed upon plans.
“20 by 20” Skilled Workforce Recruitment and Retention Program
Forward Devils Lake has introduced a new Skilled Workforce Recruitment and Retention Program that works with local & regional businesses to help encourage and recruit local/regional high school students to consider a career in a skilled and technical program.
Forward Devils Lake Corporation and participating businesses will reimburse the student for up to 80% of the cost * of annual tuition/room/meals of an approved 1- or 2-year Technical College program, ** if they commit to coming back to the region after graduating from the program and working for the employer for a period of three years
- *80% of qualified programs with annual tuition/room & board costs of up to $15,000 to a maximum of $12,000 of reimbursed costs.
- Example: Total maximum reimbursement for two years would be $24,000 – assuming 80% of a total cost to attend of $30,000 for two years.
- Cost breakdown – 60% to be paid by business sponsor, 20% by Forward Devils Lake, 20% by student
**The approved Skilled and Technical programs needed as of 03/01/2021, more will be added as local businesses learn of the program and agree to participate.
- Automotive Technician
- Culinary Chef
- Diesel Technician
- Electrical Line-worker
- Electrical Technician
- HVAC Technician
- Information Technology
- Network Technician
- Peace Officer
- Powersports Technician
- Precision Machine
- Wind Energy Technician
- Precision Ag Technology
- Ultrasound Technician
- Welding Technology
For more information on the 20x20 program
- Business Owner Call Brad Barth at Forward Devils Lake Corporation 701-662-4933 or email him at firstname.lastname@example.org
- Student Talk to your high school counselor or talk to a local/regional employer and ask them about the Forward Devils Lake 20 by 20 Program. You may also call Brad Barth at 701-662-4933 or email him at email@example.com
- Parents of Student Talk to your son’s or daughter’s high school counselor or talk to a local/regional employer and ask them about the Forward Devils Lake Program. You may also call Brad Barth at 701-662-4933 or email him at firstname.lastname@example.org.
To learn more about any of these Forward Devils Lake Corporation Business Assistance programs or if you are interested in applying for one of them – please see the contact information below.
Forward Devils Lake Corporation
Brad Barth, Executive Director
423 6th Street NE.
Devils Lake, ND 58301