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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.

Eligibility

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.

Use of proceeds

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.

Loan amount/limit

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 and fees

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.

Collateral

BND may take all steps necessary and appropriate to preserve security.

Loan terms

Monthly amortized payments not to exceed 10 years.

Forms

State Institution Political Subdivision Application (PDF)

PDFs will automatically download. Once downloaded, on desktop PC, right-click the file name in browser’s default download location, select “Show in folder,” open PDF. If you are not able to access a PDF, please contact us for assistance.

How to apply

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.