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Biofuels Pace
Biofuels PACE (Biofuels Partnership in Assisting Community Expansion) was established to buy down the interest rate on loans to biodiesel and ethanol production facilities, livestock operations, biofuels retailers, and grain handling facilities.
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
- 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
- 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 with these operations using as part of its operation a byproduct
produced at a biodiesel or an ethanol production facility.
- Eligible uses are for the purchase or construction of real property, expansion
of facilities, and purchase or installation of equipment.
- Project maximum - $250,000 of interest buy down to any single livestock
operation.
- Loan terms - 5 to 15 years.
- Equity - 40%
Retailer Pumps Criteria
- Pumps must be installed by a North Dakota biofuels retailer
- The retailer must dispense and distribute biodiesel blends with a minimum
of 5% biodiesel or gasoline blends with greater than 60% ethanol
- Project maximum - $10,000 of interest buy down to any single location of
a biofuels retailer
- Loan terms - 5 to 7 years
- Equity - 25%
Grain Handling Facilities
- Grain handling facilities located in North Dakota and licensed to do business
in North Dakota which provide condominium storage of grain that is principally
intended for the production of biofuels.
- Eligible uses are for the purchase or construction of real property expansion
of facilities and purchase or installation of equipment.
- Project maximum - $50,000 of interest buy down to a grain handling facility.
- Loan terms - 5 to 10 years
- Equity - 25% to 40%
Biofuels PACE Parameters
- Recipients of Biofuels PACE are not eligible for regular PACE funds
- Interest buy down of 5.0% below the note rate
- No community match
- Existing PACE Program parameters (ex. interest rate buy down maximum, BND's
participation amounts, default) will apply to Biofuels PACE
- Loan funds may not be used to refinance any existing debt or for relocation
within the state
A maximum of $4.5 million of the $5 million PACE program will fund ethanol
production, biodiesel production, feedlot operations and dairy operations.
The remaining dollars will be fund projects related to retailer pumps and
condo grain storage for a total of $250,000 each.
For more information on this program or other Bank of North Dakota programs,
contact:
Bank of North Dakota
700 East Main Ave
PO Box 5509
Bismarck ND 58502-5509
(701) 328-5672
1-800-472-2166 ext. 5672
TDD (Telephone Device for the Deaf) 1-800-643-3916
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