Financial Incentives

 

The Bismarck Vision Fund and the Mandan Growth Fund are city sales tax supported funds that provide assistance to businesses that wish to locate or expand in Bismarck or Mandan. The Bismarck Vision Fund and the Mandan Growth Fund can offer a flexible assortment of financing opportunities, such as interest buy downs, reduced interest loans, equity positions, grants, and other individually tailored financial incentives and exemptions.

 

In addition, North Dakota is the only state in the nation to own, control, and operate its own development bank. The capacity to arrange financing was a benefit when the bank was established in 1919, and it remains so today. The Bank of North Dakota and other state and local programs can offer an array of financing opportunities, such as interest buy downs, reduced interest loans, equity positions, and other individually tailored financial incentives and exemptions.

 

Programs are highlighted below as well as in “Incentives, Workforce Programs, and Financing.”

 

 

MATCH Program

The MATCH Program is designed to encourage and attract financially strong companies to North Dakota. The program is targeted to manufacturing, processing and value-added industries. Through this program, BND will participate in loans to financially strong companies and provide interest rates at some of the lowest in the nation.

 

PACE Fund

The PACE Fund is designed to assist North Dakota communities in expanding their economic base by providing for new job development. This program has two major elements: (1) the participation by BND with a local lender in a community based loan, and (2) the participation by the PACE Fund with the local community in reducing the borrower’s overall interest rate.

 

Business Development Loan Programs

The Business Development Loan Program through BND is designed to assist new and existing businesses in obtaining loans that would have a higher degree of risk than would normally be acceptable to a lending institution.

 

North Dakota Development Fund

A North Dakota Economic Development and Finance fund designed to provide flexible “gap” financing through loan and equity investments to new or expanding primary-sector businesses in North Dakota.

 

Tax and permitting incentives

Property tax exemptions can be granted to new and expanding businesses; payment in lieu of property tax may be negotiated; sales and use tax exemption for building materials used to construct an agricultural commodity processing facility; no sales and use tax on machinery or equipment used in processing and manufacturing; no sales tax on computer and telecommunications equipment for a new primary sector business; 5-year corporate income tax exemption; no personal property or inventory taxes.

 

Workforce Training Opportunities

Job Service North Dakota administers a number of federally funded work force training programs and two North Dakota State funded training programs. The type of training which can be provided through these funding sources are company specific customized training, classroom training, on the job training, occupational upgrading, Workforce 20/20 employee training, North Dakota New Jobs Training and Work Opportunity Tax Credits. In addition, the community of Bismarck-Mandan is home to two of the most active and industry focused colleges in North Dakota. The University of Mary and Bismarck State College are recognized for their relationship with private industry for education or training programs that are directed to meet industry needs. Both the University of Mary and Bismarck State College have provided scholarships and grants to expanding companies to be utilized for employee training.

 

Strategic Partners

The Bismarck Mandan Development Association has relationships with local service providers. Partnering with BMDA, many of these utility service providers will negotiate favorable terms, grants, and conditions for new or expanding companies.

 

City of Bismarck CORE Incentive Programs

The City of Bismarck has established CORE Incentive Programs to encourage rehabilitation, reinvestment, and new development in the downtown area. All CORE Incentive Program grants and awards are discretionary and are considered on a case-by-case basis.

 

Details of the CORE Incentive Programs can be found here. For more information please call Bismarck Planning & Development at 701-222-6447 or the Downtown Business Association at 701-223-1958. You may also visit www.bismarck.org or www.DowntownBismarck.com

 

City of Mandan

The City of Mandan has implemented several programs to assist in the redevelopment efforts of the Central Business District (CBD). Information regarding these programs can be found under the “Communities / Mandan” section of this website.