An official website of the State of North Dakota
The Match Program provides low interest rates to encourage and attract financially strong companies to North Dakota. Click here to download the Match Program flyer.
BND offers this loan by partnering with local lenders. To apply, contact your lender.
If you have any questions, contact us or call (701) 328-5795.
Bank Participation Loan Application (PDF)
Loan Renewal Application for Existing Participations (PDF)
To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.
If you are not able to access a PDF, please contact us for assistance.
While intended to serve all investment rated companies in the state, specifically, Match shall serve as the primary loan program to support large-scale economic diversification projects. These companies shall provide evidence of considerable financial strength as demonstrated by a long-term investment grade rating. If a company does not have an adequate rating, it has three options to meet this requirement:
- Credit enhancement by a financial institution. The bank or credit union can provide a letter of credit acceptable to BND or pledge Fed Book entry securities.
- Guarantee from a federal guaranty agency or another company with an investment grade rating
- Pledge a certificate of deposit or marketable securities of a quality and level satisfactory to BND
This enhancement must provide 100% of BND’s portion of the loan.
Proceeds may finance real estate, term working capital, purchase or lease equipment
BND will determine the maximum loan amount based upon funding availability and loan demand at the time of the loan application.
Fixed Interest Rate:
The interest rate on the Bank of North Dakota’s portion of the Match loan can be fixed for up to twenty years and will be based on the like term United States Treasury rate + 0.25%. The originating financial institution may also charge a service fee acceptable to BND for servicing the loan which will be added to the rate stated above.
Fees:
The lead financial institution may charge a service fee acceptable to BND that can be added to the net interest rate to BND and may charge an origination fee up to 1.00% of the total loan amount. BND will share in a portion of the origination fee.
BND requires first lien position on real estate, equipment and other security as may be appropriate. A corporate guarantee may be necessary if the borrower is a subsidiary and cannot meet the financial strength requirements on a stand-alone basis.
The promissory note will require equal principal payments over the life of the loan. For example, a $10 million note with a ten-year final maturity will require equal annual principal payments of $1 million plus accrued interest.
The term of the loan will vary depending on loan purpose with a maximum of twenty years.