Under its Capital Financing Program (CFP), the Authority makes loans to North Dakota political subdivisions which allows qualified borrowers to realize cost savings. Subject to credit and program requirements, a loan can be made to a political subdivision for any purpose for which the political subdivision has the legal authority to borrow money. Financing is available in any dollar amount as long as the ability to repay can be demonstrated.
The interest rates payable by a political subdivision are market rates which are set through a competitive bid process when the Authority issues and sells its bonds to fund a loan. The interest rates paid by the Authority on its bonds are the same rates a political subdivision will pay on its municipal securities sold to the Authority.
The CFP has been assigned a rating of "AA-" by Standard & Poor's Ratings Group.