Medical Infrastructure Loan Fund

The Medical Infrastructure Loan Fund provides critical access medical facilities in North Dakota with funds for construction that improve the health care infrastructure or improve access to existing nonprofit health care providers. It may be used for building new or expanding medical facilities that will improve the health care infrastructure in North Dakota and/or improve access to existing nonprofit health care providers in the state.

Proposed medical facility must have an expected utilization of at least 30 years. Priority is given to applicants located in oil-producing counties.

As of February 1, 2018, there is a limited pool of funds available for this loan. Prior to applying, please contact us or call 701.328.5795 to discuss your needs.

Proceeds may be used for:

  • Purchase of land
  • Purchase, lease, erection or improvement of any structure or facility to the extent that the governing board of the health care facility has authority to authorize such activity
  • Purchase of equipment

The maximum loan amount may not exceed 75 percent of the project costs within the following parameters:

  • Proposed construction project must be at least $1,000,000
  • The maximum loan amount is $15,000,000 per project or borrower
  • The construction period must not exceed 24 months after the loan is approved by BND

Interest rate: The interest rate is 1.00% fixed with the fund receiving .50% and BND receiving a .50% servicing fee.

Fees: BND may charge an origination fee and charge the borrower for all construction-related loan servicing expenses.

Loan will be secured by all available collateral interests. BND will work with alternative financing sources in perfecting collateral interests for all parties.

Monthly interest payments will be required during the construction period or paid at the time of conversion to permanent financing. Permanent financing requires monthly amortized payments not to exceed 25 years.

As of February 1, 2018, there is a limited pool of funds available for this loan. Prior to applying, please contact us or call 701.328.5795 to discuss your needs.

Medical Infrastructure Loan Fund Application (PDF)

As of February 1, 2018, there is a limited pool of funds available for this loan. Prior to applying, please contact us or call 701.328.5795 to discuss your needs.

An application by the governing board of the health care facility must be made to the Medical Facility Infrastructure Task Force, coordinated by the North Dakota Hospital Association. The applicant must provide:

  • Detailed description of the proposed construction project
  • Demonstrate need and long-term viability of the project

If the task force provides written approval with reasons for approving the project, BND will require the following items:

  • Application plus all required attachments as detailed in the application
  • Evidence of approval of the building plans from the North Dakota Department of Health
  • Any other data or documentation as deemed necessary

If you have any questions, contact us or call 701.328.5795.