Bulk Propane Storage Tank Revolving Loan Fund
The Bulk Propane Storage Tank Revolving Loan Fund, established in 2023 by the North Dakota Legislature, provides loans to propane retailers for the purchase and installation of storage containers for bulk storage of propane. This is a revolving loan fund with an initial appropriation of $5 million. Applications will be accepted as long as funds are available.
The business must be a licensed propane retailer conducting business in the state of ND.
To purchase and install storage containers to be used for the bulk storage of propane.
BND’s maximum loan participation is the lesser of $180,000 or 85% of the project costs per propane retailer.
BND’s participation is negotiated on a loan-by-loan basis. In most cases, BND will consider a participation of up to 100 percent of the loan.
Interest rate: BND’s portion (up to $180,000 or 85% of project costs) is fixed at 2%. The lead lender will retain a 0.25% service fee (BND to net 1.75%).
Fees: BND to receive a $250 origination fee.
The lead lender may charge an origination fee of up to 0.50 percent of the total loan amount.
Adequate collateral is required and will be evaluated on a loan-by-loan basis.
A lead lender is required. BND’s participation percentage is negotiated on a loan-by-loan basis. In most cases, BND will consider a participation of up to 100 percent of the loan. The lead lender will retain a 0.25 percent servicing fee.
All applications are subject to BND standard underwriting procedures and documentation.
Term may not exceed 15 years.