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The state of North Dakota set aside $50 million of CARES Act funding to help local business owners. Bank of North Dakota (BND) is distributing this through the COVID PACE Recovery II (CPR II) program by reimbursing businesses for interest on business related debt accrued between April 1-September 30, 2020. These funds do not need to be repaid.
Applications are being accepted through October 30, 2020 at 5 p.m. CT. The interest expense eligible for these funds includes any debt on which a business owner accrued interest. It covers interest on all existing debt, held by any creditor, not just a local financial institution or BND. Examples include, but are not limited to, loans held by a financial institution, interest paid to a leasing company, working capital loans or credit cards used for business expenses.
How much can a business owner receive? Business owners can receive up to $50,000.
Who will receive funds? Funds will be distributed based on the greatest percentage of gross revenue loss after all the applications are received. Funds will be distributed to the local lender the week of November 2.
What is needed for the application?
Joe’s Restaurant wants to apply for the program.
Step 1: Determine gross revenues from April 1-September 30, 2019.
Step 2: Determine gross revenues from April 1- September 30, 2020. Note: If the figures for September are not available, business owner may estimate.
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Step 1
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2019—April 1-Sept 30--Gross Revenue
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$ 180,000
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Step 2
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2020—April 1-Sept 30--Gross Revenue
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$ 110,000
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Step 3: Determine the loss in year-over-year revenue and divide that by total gross revenue for 2019. If the percentage change is greater than 20%, the business is eligible to apply for a buydown grant.
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Step 3
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Gross Revenue Change For Period
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$ (70,000)
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Percentage Gross Revenue Change $70,000/180,000
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38.89%
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Step 4: Calculate all the interest paid for the time period of April 1 to September 30, 2020.
Term Debt on Building $15,000
Working Line of Credit $ 5,000
Credit Card Debt $ 2,000
Equipment loan/Lease interest $ 1,500
Delivery Van Loan $ 1,500
Total $ 25,000
Step 5: Joe visits local lender which certifies that he is eligible and submits the application to BND before 5 p.m. on October 30, 2020.
For more program details, click here.
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