Growth Initiative Fund Supports Business Growth

The GFMEDC-managed Growth Initiative Fund (GIF) is one of our many vital business support tools. This revolving loan fund primarily acts as a community buy-down partner with the Bank of North Dakota on the PACE and Flex PACE loans. The buy-down programs help unlock additional matching state grant funding to provide low-interest financing for primary-sector companies, encouraging and enabling significant capital investments into their business. 

2024 

In 2024, the fund approved 10 loans totaling $1,015,000, with the primary-sector companies investing $28.5 million in capital investment, adding 62 jobs and 116,500 new square feet. 

The GIF’s interest buy-down partner participation with Bank of North Dakota provided access of up to $1.8 million in matching PACE/Flex PACE grant funds, as well as an additional $300,000 in grant funds as part of the Agriculture Diversification and Development Fund program. 

Background

The GIF is a $9.2 million revolving loan fund formed in 1993, administered by the GFMEDC staff and governed by seven board directors appointed by GFMEDC, Cass County, City of Fargo and City of West Fargo. The GIF was primarily funded in the mid 1990’s to early 2000’s from contributions by Cass County, City of Fargo and City of West Fargo, totaling $7.3 million. Due to tremendous growth in loan activity since 2018, available funds for new loans have greatly diminished, putting the GIF’s capacity to adequately support primary sector expansions at risk. The City of West Fargo contributed an additional $650,000 in 2024 to help shore up available loan funds, and more public sector funding will be needed should the level of regional primary sector expansions continue at what appears to be “a new normal” of loan activity.

A great benefit of this revolving fund structure, and the enabling of matching state grant funds for the companies, is that these approximate $8 million in public funds contributed to the GIF have been used many times over, generating over $20.2 million in GIF loans, while also helping provide access to $35.5 million in matching state grant funds for the expanding primary sector companies. 

Lifetime of the Growth Initiative Fund 

The all-time funded loan activity and economic impact can be seen below from the 299 loans through 12/31/24. 

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