The North Dakota Rural Water Finance Corporation (NDRWFC) was created in December 1998 by the North Dakota Rural Water Systems Association (NDRWSA).  In an effort to assist borrowers across the State of North Dakota with the overwhelming burden of financing capital construction projects, the NDRWFC, in conjunction with Raymond James, has created the Interim Construction Loan Program to provide funding for communities which have received a permanent loan commitment from the USDA, Rural Development (RD) or the Bank of North Dakota’s (BND) Community Water Facilities Revolving Loan Fund (CWFRLF).  The program is structured to provide a mechanism for obtaining competitive fixed rate loans for construction projects at a very low cost of borrowing.

The program is designed as tax-exempt pooled financing with the NDRWFC as the program administrator. The loan rate is fixed for generally one year at a time.  Loan funds are disbursed on an invoice requisition basis.  The effective cost of borrowing is based on the loan rate less an interest earnings credit on undisbursed construction proceeds.  The effective rate of funds is estimated at approximately 1.25% - 2.25%.  Depending on the success of the program, the potential for an interest rebate to the borrower does exist but is not guaranteed.  Should excess funds exist after the closing of the program, an interest rebate will be made to program participants.  Any potential rebate will lower the effective cost of funds to the borrower.

 Basic Qualifications:

  1. Must be a political subdivision.
  2. Must have Letter of Conditions and Commitment Letter from Rural Development (RD)
  3. Loans made through the Bank of North Dakota’s (BND) Community Water Facilities Revolving Loan Fund (CWFRLF) are now eligible for this program.

Loan Terms:

  1. Current Loan Rate:  2.50%
  2. Estimated rate of borrowing after investment earnings credit and final rebate:  1.25% - 2.25%. Last program year, the NDRWFC rebated $95,300 to participants. These rebates represented 25.6% of the borrower’s net interest.
  3. The effective cost of a loan through the NDRWFC last year was 1.80%.
  4. Loan limit:  The only limit is the amount of loan dollars approved by RD in its Letter of Conditions.
  5. Capitalized interest:  All interest is capitalized per RD budget.
  6. Payoff:  Your loan is repaid when your project is complete and final closing for the long term financing is completed by RD.


For More Information Contact:

Eric Volk, Executive Director
North Dakota Rural Water Systems Association
2718 Gateway Avenue, Suite #201
Bismarck, ND 58503-0585

Begin your financing by completing the Interim Financing Application and reading the Interim Financing Fact Sheet.