Critical Financial Need Program for Political Subdivisions
The Critical Financial Need Program provides loans to political subdivisions requiring immediate financing of public facilities due to a fast-growing population. See ‘Eligibility’ for all requirements.
The Critical Financial Need Loan Program is only available to political subdivisions that are receiving local gross production taxes from oil exploration and production.
The political subdivision will be encouraged to pursue all other available State financing alternatives prior to approaching the Bank.
Proceeds may finance needed new construction or renovation projects for public infrastructure such as law enforcement; courthouses; schools or other infrastructure to serve a fast-growing population.
The loan amount will be determined by the Bank and the local political subdivision.
The maximum loan amount will not exceed the available political subdivision’s revenue sources that can be pledged over a 10-year period minus the estimated interest costs.
Interest rate: The interest rate established for this program has been set at 1.50% over the 30-day LIBOR adjusted monthly with a floor of 1.75%. Rate increases limited to a maximum of 1.00% per year.
Fees: The borrower will be responsible for all closing costs associated with the loan.
BND may take all steps necessary and appropriate to preserve security.
Monthly amortized payments not to exceed 10 years.
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Local political subdivisions receiving local gross production tax revenues may contact BND for more information on how to apply at 701.328.5795 or 800.472.2166 ext. 328.5795.