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Home » Loans » Business Loans » Bulk Propane Storage Tank Revolving Loan Fund

The Bulk Propane Storage Tank Revolving Loan Fund, established in 2023 by the North Dakota Legislature, provides loans to propane retailers for the purchase and installation of storage containers for bulk storage of propane. This is a revolving loan fund with an initial appropriation of $5 million. Applications will be accepted as long as funds are available.

How to apply

BND offers this loan by partnering with local lenders. To apply, contact your lender.

If you have any questions, contact us or call (701) 328-5795.

Forms

Bank Participation Loan Application (PDF)

To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.

If you are not able to access a PDF, please contact us for assistance.

Eligibility

The business must be a licensed propane retailer conducting business in the state of ND.

Use of proceeds

To purchase and install storage containers to be used for the bulk storage of propane.

Loan amount/limit

BND’s maximum loan participation is the lesser of $500,000 or 85% of the project costs per propane retailer.

BND’s participation is negotiated on a loan-by-loan basis. In most cases, BND will consider a participation of up to 100% of the loan.

Interest rate and fees

Interest Rate:

  • BND’s portion (up to $500,000 or 85% of project costs) is fixed at 2.00%. The lead lender will retain a 0.25% service fee (BND to net 1.75%).

Fees: 

  • BND to receive a $250 origination fee.
  • The lead lender may charge an origination fee of up to 0.50% of the total loan amount.

Collateral

Adequate collateral is required and will be evaluated on a loan-by-loan basis.

Participation requirements

A lead lender is required. BND’s participation percentage is negotiated on a loan-by-loan basis. In most cases, BND will consider a participation of up to 100% of the loan. The lead lender will retain a 0.25% servicing fee.

All applications are subject to BND standard underwriting procedures and documentation.

Loan terms

Term may not exceed 15 years.