Taxation; rate of interest.

2025 Regular Session Introduced by Ian Lovejoy and 2 co-sponsors

North Dakota would create a state-backed loan guarantee program through the Bank of North Dakota to help finance construction and renovation of nursing and basic care facilities.

Left in Finance

Main purpose

HB 1550 would establish a state-backed loan guarantee program, administered by the Bank of North Dakota (BND), to support financing for construction and renovation of nursing and basic care facilities. The goal is to improve access to capital for facility owners/developers and encourage investment in long‑term care infrastructure.

Key provisions

Program administration: The Bank of North Dakota is directed to administer the nursing and basic care facility loan guarantee program and to define eligible loan types and projects.

Accepting assets: BND may accept grants, property, or interests in property and income from those assets on behalf of the state for program purposes.

Guarantee reserve fund: BND must establish and maintain an adequate guarantee reserve fund in a special account to reimburse lenders for guaranteed loans that default.

Use of Strategic Investment and Improvements Fund (SIIF): BND may request transfers from the SIIF to bring the reserve fund to 100% of the required balance. Total transfers from SIIF may not exceed $100 million.

Default and collection procedures:

If a guaranteed loan defaults and the lender certifies default to BND, BND will reimburse the lender from the reserve fund to the extent the loan was guaranteed.
Lenders must tender the note and related evidence to BND when seeking payment; BND may pursue collection and statute-of-limitations defenses may not be used against collection.
Recoveries collected by BND (less collection costs) are to be deposited back into the reserve fund.

Fees: BND may charge participating lenders reasonable fees to cover program administration. Excess fee receipts beyond administrative costs must be deposited in the reserve fund.

Who is affected

Primary beneficiaries: lenders, developers, owners and renovators of nursing homes and basic care facilities seeking loans.

Administrator: Bank of North Dakota (program operator and guarantor).

State finances: potential contingent exposure of up to $100 million from SIIF transfers (subject to requests and approvals) and the fiscal impact of any loan defaults reimbursed from the reserve.

Long‑term care residents and communities: potential increase in facility capacity and improvements.

Legislative/procedural status

Introduced in the Sixty‑ninth Legislative Assembly (filed March 14, 2025).

Public hearing held March 25, 2025; testimony recorded; left pending in committee.

Author withdrew the bill April 3, 2025; the committee recommended study in the interim.

Bill Information provided indicates a second‑reading outcome of "failed to pass, yeas 3 nays 89" (as recorded in the supplied materials).

Potential impacts and considerations

Pro: May lower financing costs, stimulate construction/renovation of care facilities, and address capacity/quality needs in long‑term care.

Con: Exposes state funds to credit risk; transfers from SIIF (up to $100M) could reduce other strategic reserves; the program’s effectiveness depends on underwriting standards, fee structure, and oversight by BND.

Related bill noted: SB 2155 (companion).

Bill