COVID-19 PACE Recovery II (CPR II) Program
The COVID-19 PACE Recovery II (CPR II) Program assists North Dakota businesses impacted by the COVID-19 pandemic. The program will pay your interest expense accrued on eligible existing debt from April 1, 2020 through September 30, 2020. It does not need to be repaid.
How is CPR II different from CPR I?
CPR II provides an interest rate buydown on existing debt whereas CPR I provided working capital through the issuance of new debt.
Did my business have to be in operation during the entire 2019 gross revenue qualification period?
Yes, in order for gross revenue loss calculations to be accurately ranked among applicants.
Is interest that accrued and was paid between April 1, 2020 and September 30, 2020 eligible?
Yes, both interest paid and accrued is used to determine the eligible buydown amount.
Will buydown received in CPR I impact the maximum amount of buydown an applicant is eligible for in CPR II?
Since these are separate programs, buydown received, or to be received, by an applicant from the CPR I loan program does not count toward the $50,000 maximum in the CPR II program.
Are CPR II applicants required to obtain a DUNS Number and Register in SAM.gov?
Only if the applicant is applying for the maximum $50,000 interest buydown. All applicants requesting $50,000 are required to obtain a DUNS number and register in SAM.gov.
How does an applicant obtain a DUNS number?
If an applicant is applying for the maximum $50,000 interest buydown and does not already have a DUNS number, they can call 1.866.705.5711 or access http://fedgov.dnb.com/webform to get a DUNS number assigned for free.
How does an applicant register in SAM.gov?
If an applicant is applying for the maximum $50,000 interest buydown and is not already registered in SAM.gov, they can register at https://sam.gov.
Will proceeds allocated from this program result in taxable income?
Please refer to your tax advisor.
Is the applicant required to repay proceeds received from the program?
No, the applicant is not required to repay the proceeds.
Are nonprofits eligible?
Yes, they are eligible.
Will I receive confirmation that the application has been received?
Yes, you will receive email confirmation that the application has been received. If the applicant was not eligible or any required information is missing from the application, you will be notified promptly.
The applicant can be any person or entity whose business:
- Had a physical location in North Dakota as of March 13, 2020
- was current on all financial obligations as of March 13, 2020.
- sustained a minimum 20% year-over-year gross revenue loss for North Dakota-based operations between April 1 and September 30, 2019 and the same time period in 2020.
- have a financial institution certify to BND that the applicant’s business has incurred the minimum economic injury as a result of pandemic.
Agri-businesses are eligible. Ag producers are not eligible.
Proceeds shall be used to pay your interest expense accrued on existing business debt from April 1, 2020 to September 30, 2020. Eligible business debt includes all debt with the exception of owner or shareholder debt and related entity debt.
It does not need to be repaid.
The maximum amount of buydown is the total of eligible interest expense accrued by a qualifying applicant between April 1, 2020 and September 30, 2020 or $50,000, whichever is less. Buydown received from other BND buydown programs shall be excluded from eligible interest.
If separate applicants with common ownership amounts of 51% or more apply, these applicants must be labeled as and considered to have common ownership. The maximum buydown allocated for all entities designated as common ownership is $50,000.
The formula for determining year-over-year gross revenue percentage loss is:
- North Dakota-based Total gross revenue April 1-Sept. 30, 2019 (a)
- North Dakota-based Total gross revenue April 1-Sept. 30, 2020 (estimate if needed) (b)
- Subtract Total gross revenue April 1-Sept. 30, 2020 (b) from total gross revenue April 1-Sept. 30, 2019 (a) = Loss in revenues (c)
- Divide the Loss in revenues (c) by the Total gross revenue April 1-Sept. 30, 2019 (a) for year-over-year gross revenue percentage loss
Determine total interest expense accrued from April 1, 2020 to September 30, 2020.
There are no fees for the applicant.
BND will pay a one-time service fee to the financial institution of $250 for each application allocated buydown.
- Applications will be received from 8 a.m. October 1 to 5 p.m. October 30, 2020.
- On November 2, 2020, all eligible applications will be ranked by BND from highest to lowest percentage loss in gross revenues from April 1, 2020 to September 30, 2020 as compared to the gross revenues from April 1, 2019 to September 30, 2019. BND understands that applicant may need to use a projection for September 2020 if books are not closed in time to meet the application deadline.
- BND will provide buydown to those applicants with the largest losses first and continue down the rankings until $50,000,000 is exhausted. It is possible not all applicants will receive buydown.
- BND will notify financial institutions the week of November 2 which applicants were allocated buydown. Funds will be distributed as promptly as possible to financial institutions which will distribute to applicants.
Applicant must work with a financial institution to certify to BND that the applicant has incurred the minimum economic injury as a result of the COVID-19 pandemic. The application will be posted October 1, 2020.
FINANCIAL INSTITUTION AND APPLICANT(S) WILL CERTIFY ELIGIBILITY AND USE OF INTEREST BUYDOWN IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CPR II PROGRAM.
Please contact your local lender to initiate an application with Bank of North Dakota.
ALL APPLICATIONS MUST BE SUBMITTED BY A LENDER AT YOUR LOCAL FINANCIAL INSTITUTION. APPLICATIONS SUBMITTED BY A BUSINESS OWNER WILL NOT BE ACCEPTED.
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