The MAGIC Fund Committee advanced the application for a loan from United Pulse Trading Inc. at its regular meeting on Thursday.

The committee unanimously agreed to move the company’s loan request forward to the next stage, where its final approval will be decided by the Minot City Council.

United Pulse Trading Inc., which does business as AGT Foods, is seeking a $269,231 forgivable loan from the Minot Magic Fund to help with the purchase of equipment as a part of a $12.7 million expansion for the company’s operations in Minot.

According to information provided to the committee by Minot Area Chamber EDC (MACEDC), the MAGIC Fund loan would secure the community’s portion of the interest buydown. Additionally, if approved by the Bank of North Dakota, the state would provide about $500,000 in interest buydown.

The planned $12.75 million expansion of the AGT Foods Extrusion Center of Excellence will add two additional gluten free pasta production lines producing short pasta cuts and long pasta cuts.

AGT Food and Ingredients is a major supplier of value-added pulses, staple foods and food ingredients in the world. The company buys lentils, peas, beans and chickpeas from farmers in the area of its more than 40 facilities in Canada, the United States, Turkey, Australia, China and South Africa. Roughly half of the lentils, peas, beans and chickpeas that go through MInot’s facility are purchased from local North Dakota farmers, according to MACEDC.

According to information from MACEDC, the expansion is necessary due to the AGT Extrusion Center quickly becoming the epicenter of gluten free pasta production in North America, as customer demand has existing production lines on pace to produce and ship 3,500 metric tons of gluten free pasta to market. The additional lines will increase capacity from 4,000 metric tons of pasta to 20,000 metric tons by the end of 2026 when all lines are scheduled to be commissioned.

The MAGIC funds will be structured as a forgivable loan if approved by the council, should the capital expenditure metrics be met within three years and should the facility and these expanded lines remain in operation at the end of the three year period.