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LIFT program reports modest repayment flows; committee hears proposals to sustain pipeline funding
Summary
Bank of North Dakota officials told appropriators that the state’s LIFT commercialization fund has made dozens of awards to early-stage companies, has modest cash on hand and is beginning to see loan repayments return to the fund.
Bank of North Dakota officials briefed the Appropriations Education & Environment Division on the status of the LIFT commercialization loan program and on funding options to sustain the program.
Kelvin Hullett said the LIFT program was created in 2019 to help companies move from research into commercialization; the program offers five‑year loans with three years of no payment/no interest followed by two years at 2% interest and options at maturity to refinance into conventional financing. Hullett told the committee LIFT has received roughly 170 applications and has awarded about $44 million across bienniums (applications requested about $156 million); about 42% of applicants have received awards and the program’s award-to-request ratio is approximately 29%.
Current balances and repayment: Hullett said the program currently has about $1.75 million available. Repayments into the fund are modest but beginning: the program is receiving roughly $20,000 per month in repayments and a set of early loans will move into maturity in the coming years, which could increase inflows.
Program purpose and pipeline: Committee members and witnesses described LIFT as a higher-risk, early‑to‑mid-stage financing tool intended to supply capital where private financing may be insufficient. Average award sizes in the program are about $630,000 and the committee discussed capping awards at roughly $1 million. LIFT is jointly administered by Commerce (which runs the application/selection process) and the Bank (which underwrites awarded loans), and the Commerce commissioner chairs the LIFT committee.
Budget context and requests: Witnesses recalled the governor requested $10 million for LIFT; the Senate’s figure was roughly $5 million. Committee members asked whether awards have grown or whether the program should receive larger awards; witnesses said LIFT awards appear appropriately sized for the stage of companies considered and that other tools (the development fund, bank loan programs) can support larger capital needs.
Ending: Witnesses said LIFT has several success stories and some defaults, as expected for an early‑stage portfolio, and that the program has reserved for losses. The committee did not take funding action at the hearing.
