North Dakota Flex PACE Workforce Training Fund
Bank of North Dakota (BND) / North Dakota Department of Commerce
Interest subsidy; varies by loan
North Dakota PACE loan interest buy-down
North Dakota's Flex PACE program subsidizes interest costs on private loans for businesses investing in workforce training and job creation in North Dakota. The state buys down the interest rate by up to 5% on an approved Bank of North Dakota Pace loan, effectively delivering a ~$10,000–$75,000 interest subsidy over the loan term. Covers equipment, building, and workforce development projects by ND-based businesses.
- Funding type
- Program
- Level
- State
- Amount range
- $5,000 – $100,000
- Realistic amount
- A $300,000–$500,000 PACE loan with a 5% rate buy-down over 5 years typically yields $30,000–$65,000 in interest savings…
- Deadline
- Rolling — applications accepted year-round through participating local lenders.
- Status
- active
- States
- ND
- Payment model
- loan
Who qualifies
- Business located and operating in North Dakota
- Must be creating or retaining jobs in North Dakota
- Project must involve qualifying purpose: workforce development, equipment purchase, building improvements, or business expansion
- Must obtain an eligible Bank of North Dakota PACE loan through a participating local lender
- Business must demonstrate ability to repay the underlying PACE loan
- No minimum or maximum employee count — open to businesses of all sizes
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Workforce training costs (tuition, instructor fees, training equipment)
- Equipment and machinery purchases
- Building construction, renovation, or leasehold improvements
- Working capital tied to job creation project
- Technology and software upgrades
Ineligible expenses
- Refinancing existing debt
- Speculative real estate development
- Projects outside North Dakota
- Non-job-creating activities
How to apply
-
1
Contact a participating local lender
Work with a North Dakota bank or credit union that participates in the BND PACE program. The lender will originate the loan and coordinate the Flex PACE interest buy-down component.
~4 hrs
-
2
Apply for BND PACE loan through local lender
Complete standard commercial loan application with the local lender. Include project description, job creation/retention plan, and intended use of funds. Lender submits to BND for PACE approval.
~4 hrs
-
3
Request Flex PACE interest buy-down
Lender submits the Flex PACE buy-down request to the ND Commerce Department or BND PACE program office simultaneously with the PACE loan application. Include ND job creation documentation.
~4 hrs
-
4
Close loan and receive reduced-rate financing
Upon BND/Commerce approval, close the PACE loan with the reduced interest rate reflecting the state buy-down. Reduced interest applies for the approved term.
~4 hrs
Flex PACE works through local banks — start with your existing ND business banker. The buy-down is stacked on top of BND's already below-market PACE rate, making the effective borrowing cost very competitive. Job creation documentation is the key approval lever.
Deadline & timing
Apply through a participating local North Dakota bank or credit union that partners with Bank of North Dakota's PACE program. The local lender originates the loan; BND and the Commerce Department provide the interest buy-down.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.