N.D. Admin. Code 27-04-01-02
An award to a new or expanding business for the purpose of training current and new employees for new job positions must be made in the form of a loan to that business by the department or a community. Funds received in the form of a loan must be used to train employees hired in new job positions and cover administrative costs identified in the agreement.
Job service North Dakota shall calculate the maximum loan amount allowable for new job training projects. The estimated state income tax withholding credit available to the project must be calculated using "withholding" averages developed by the state tax commissioner based on the hourly wages that are to be paid to the employees in new job positions covered in the agreement and must cover principal and interest payments for the entire loan repayment period. The repayment period may not exceed ten years. Reserves may be included when determining the total loan amount in order to meet initial interest payments until sufficient state withholding tax credits are collected to make payments on both principal and interest.
Financial assistance awarded to a project must be based on the actual cost of allowable services and administrative costs as identified in the agreement. The interest rate to be paid and repayment schedule on a loan shall be determined by the lending entity. Issuance of the proceeds of a loan to a business must be made on a cost reimbursement basis after the business has incurred the costs. Approval of disbursement of the loan must be made jointly by job service North Dakota and the business. Funds requested must be commensurate with training needs. Program funds may not be used to cash flow a business.
The specific vocational preparation guide of the dictionary of occupational titles must be used for determining the length of allowable on-the-job training periods. When a specific job is not listed, time periods must be based on the specific vocational preparation guide for similar jobs.
On-the-job training may not exceed fifty percent of the individual's gross annual wages during the first full year after the date of commencement of the project.
N.D. Admin Code 27-04-01-02
General Authority: S.L. 1993, Ch. 493
Law Implemented: S.L. 1993, Ch. 493, § 2