North Dakota Committee approves $100M for Long Term Care Facility Infrastructure Loans

The Senate Appropriations Committee for the Human Resources Division convened on April 7, 2025, to discuss significant funding initiatives for long-term care facilities in North Dakota. The meeting, chaired by Chairman Deaver, focused on the establishment of a new revolving loan fund aimed at supporting infrastructure projects within the long-term care sector.

The primary agenda item was the proposed appropriation of $100 million to create a Long Term Care Facility Infrastructure Loan Fund. This fund, which does not currently exist, is modeled after successful hospital loan programs and aims to provide low-interest loans to long-term care facilities. The committee discussed the necessity of this funding, noting that several projects are ready to proceed but are hindered by current interest rates and construction costs.

During the discussions, it was revealed that the initial proposal for the fund was set at $50 million, but the Senate increased it to $100 million to accommodate the anticipated demand for loans. Representatives highlighted that there are currently five projects prepared to utilize up to $50 million of the fund, with additional projects in the planning stages. The rationale for the increase was based on feedback from the Bank of North Dakota, which indicated that a larger fund would allow for more applications to be processed in a timely manner.

The committee also addressed the structure of the loans, which would not exceed 50% of the project costs and would have a cap of $10 million per project, with a 2% interest rate and a repayment period of up to 30 years. This structure is designed to ensure that funds are distributed across various projects statewide, including those in rural areas.

Kelvin Hollid, Chief Business Development Officer at the Bank of North Dakota, confirmed that the fund would operate similarly to other revolving loan funds established by the legislature. He assured the committee that the funds would be disbursed quickly to eligible projects, thereby facilitating timely infrastructure improvements in the long-term care sector.

The meeting concluded with a consensus on the importance of the fund for enhancing long-term care facilities in North Dakota, with plans for further discussions and potential follow-up actions to finalize the appropriation. The establishment of this fund is seen as a crucial step in addressing the infrastructure needs of long-term care providers in the state.