COVID Relief Numbers Announced
Nearly 400 business sectors across North Dakota received funding through one of four COVID-relief programs established by Bank of North Dakota. The Bank utilized its network of banks and credit unions across the state to ensure the delivery of funds happened as quickly and efficiently as possible. Applications were accepted through November 30, 2020 for the programs.
The Small Employer Loan Fund (SELF) assisted local financial institutions and certified development corporations in providing loans to North Dakota businesses with 10 or less full-time equivalents to aid in their recovery from pandemic-related impacts. The proceeds of the loan, which had a fixed interest rate of 1%, could be used to support working capital needs, recurring expenses and replenish inventory. There were 910 loans for $30.8 million approved in SELF loans.
The COVID-PACE Recovery I Loan Program (CPR I) allowed local financial institutions to provide low interest loans for businesses in North Dakota to support working capital needs, term out COVID-related bridge loans and credit card debt originated on or after March 13, 2020. There were 277 loans for $377 million, of which $35 million of CARES Act funds were used to buy down the interest rate to 1%.
The COVID-PACE Recovery II Program (CPR II) utilized CARES Act funding so state’s hardest hit businesses could reduce interest expense accrued on eligible existing debt and did not need to be repaid. CPR II will grant nearly $35 million to 810 businesses.
Finally, the Ethanol Recovery Loan Program was created to provide low interest loans to support the economic recovery of North Dakota ethanol producers. Loan funds were used to support working capital needs of North Dakota-based operations at a 1% fixed interest rate. There were four loans for a total of $21.5 million approved for these loans.
In addition to the disaster relief programs for businesses, six-month student loan payment deferrals were given to 8,899 borrowers, about 34% of the student loan portfolio in repayment. Loan deferrals were also granted to 241 commercial borrowers and 143 residential loan borrowers.