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The School Construction Assistance Revolving Loan Fund provides loans to fund the construction and permanent financing to eligible North Dakota school districts. Project may include new school construction or remodeling project approved by the superintendent of public instruction.
To apply for funding under this program, the school district shall:
- Submit a completed application to the Department of Public Instruction (Construction | North Dakota Department of Public Instruction (nd.gov)) and the Bank. The application shall include:
- Estimated sources and uses for the project.
- Financial statements for the school district as well as projections to support the repayment capacity for the project.
The board of a school district shall:
- Propose a new construction or renovation project with a cost of no less than $1,000,000 and an expected utilization of at least 30 years.
- Obtain approval of the superintendent of public instruction for the project under N.D.C.C. 15.1-36-01.
- Receive authorization for a bond issue in accordance with N.D.C.C. 21-03.
Proceeds may be used to finance new construction or remodeling project of a North Dakota school district.
Refinancing of existing debt obligations will be allowed if at the end of the biennium, the fund has sufficient capacity, after all new construction projects are funded.
If the school construction project totals less than $75,000,000, the maximum loan amount for which a school district may qualify is $15,000,000. If the school construction project totals $75,000,000 or more, the maximum loan amount for which a school district may qualify is $30,000,000. If the school district’s unobligated general fund balance on the preceding June 30 exceeds the limitations set forth under N.D.C.C. 15.1-27-35.3, the amount may not exceed 80 percent of the project’s cost.
Interest rate:
2.00% fixed rate
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.
The debt obligation shall require the following:
- Interest payments may be made during the construction period or paid at the time of conversion to permanent financing. The construction period may not exceed 24 months.
- The term of the obligation may not exceed 20 years and will call for amortized payments over the term. The school district may request a shorter term.