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.
- Call Brad Barth at 701-662-4933 for program deadlines.
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
The ND Career Builders program provides matching funds to help North Dakota businesses recruit employees and keep our talent in North Dakota. Businesses in North Dakota are welcome to participate and invest in this unique partnership.
The Career Builder program is a unique tool that helps businesses to recruit and retain talent in high-need occupations. How it works is that this innovative partnership provides $1 of state funds for each $1 of private-sector matching funds, up to a total of $17,000 per recipient. Individuals can receive a scholarship on the front end, loan repayment on the back-end, or both, for their commitment to the state to fill one of the high-demand occupations. A sure win-win for businesses, students, employees, and the state!
If you are a business in North Dakota you can participate in this unique partnership. The program is designed to fill positions at your business or grow businesses across the state. Driven by high-demand occupations in healthcare, manufacturing, IT, industrial and skilled trades, education, social services and professional services, investors can contribute to specific colleges, programs, or students.
Upon application and prior to each payment, applicants will be required to provide:
- Proof of residing in ND.
- Verification of employment within ND in a high-need occupation.
- Proof of degree completion.
- A current student loan billing statement from their lender.
- Commitment from a private-sector donor to match state dollars.
- Applicants newly hired into their high-need occupation within ND will be considered.
Since this is a public-private program, payments will only be made if the private-sector match is received.
Payments may not exceed $5,667 per year, or one-third of the applicant’s outstanding student loan principal balance at the time of application, whichever is less. Maximum eligibility is $17,000.
Loan Repayment Details:
Graduates of any program of study may apply for the ND Career Builders Loan Repayment by completing the application with their employer.
Eligible loans include:
- FEDERAL Subsidized Student Loans
- Federal Unsubsidized Student Loans
- Federal Consolidated Student Loans
- Perkins Loans
- Bank of ND DEAL loan or CEAL education loan
- Other private alternative student loans.
- Other private loan/debt that is not a “student loan”, such as home equity, credit card debt, or other consolidated debt that is no longer a “student loan”, will not be considered.
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