Biofuels PACE Program (Biofuels Partnership in Assisting Community Expansion)
Biofuels PACE buys down the interest rate on loans to biodiesel and ethanol production facilities and livestock operations.
Ethanol Production Criteria
- Production facility must be located in North Dakota
- Facility must produce agriculturally derived denatured ethanol
- Fuel must be suitable for blending with a petroleum product for use in internal combustion engines
- Ownership must consist of:
- Ag producers who hold at least 10% interest in the facility, or
- Residents of North Dakota who own at least 50%
- Project maximum - $500,000 of interest buy down
- Loan terms - 7 to 12 years
- Equity - 40% to 50%
Biodiesel Production Criteria
- Production facility must be located in North Dakota
- Facility must produce biodegradable, combustible liquid fuel derived from vegetable oil or animal fat
- Fuel must be suitable for blending with diesel fuel for use in internal combustion diesel engines
- Ownership must consist of:
- Ag producers must hold at least 10% interest in facility, or
- Residents of North Dakota who own at least 50%
- Project maximum - $500,000 of interest buy down
- Loan terms - 7 to 12 years
- Equity - 40% to 50%
Livestock Operations Criteria
- Livestock operations located in North Dakota that feed, handle, milk, or hold livestock while using a byproduct produced at a biodiesel or an ethanol production facility
- Eligible uses - the purchase or construction of real property, expansion of facilities, and purchase or installation of equipment including a biodigester system
- Project maximum - $250,000 of interest buy down to any single livestock operation
- Loan terms - 5 to 15 years
- Equity - 40%
Biofuels PACE Parameters
- Biofuels PACE recipients are not eligible for regular PACE funds
- It includes an interest buy down of up to 5% below the note rate
- There is no community match
- Existing PACE Program parameters (interest rate buy down maximum, BND's participation amounts, and default) apply to Biofuels PACE
- Loan funds may not be used to refinance any existing debt or for relocation within the state
For more information please contact us at:
Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5624
1-800-472-2166 ext. 5624
TDD (Telephone Device for the Deaf) 1-800-643-3916
