Robert Humann, SVP of Lending
Bank of North Dakota
1200 Memorial Highway
P.O. Box 5509
Bismarck, ND 58506-5509
Telephone: (800) 472-2166 Ext. 5703 or (701) 328-5703
FAX (701) 328-5731
Telephone: (800) 472-2166 Ext. 5786 or (701) 328-5786
FAX (701) 328-5731
Program/Project Title: Beginning Farmer Real Estate Loan Program
Target Group: A North Dakota resident whose principal occupation is farming or ranching with a net worth of less than $500,000 and must not have owned more than 30 percent of the average farm size for the county in which the land is located
Description: Unlike the IDB-based program, this program is administered through the Bank of North Dakota. The maximum loan is $400,000 with the bank lending up to 75 percent of the appraised value with a maximum repayment term of 25 years. The interest rate is fixed for the first five years at 1 percent below BND’s Base Rate with a maximum rate of 6 percent; for the next five years variable at 1 percent below BND’s Base Rate, adjusted annually; then floats at BND’s Base Rate.
Program/Project Title: Family Farm Loan Program
Target Group: Farmers with net worth less than $500,000
Description: This program also is administered through the Bank of North Dakota. BND may participate in loans up to 90 percent of the loan amount but not exceed $400,000; proceeds of the loan can be used to purchase or refinance real estate, farm equipment or livestock, as well as to restructure operating debt carry-over. The interest rate on BND’s share of the loan is variable at 1 percent below BND’s Base Rate.
Program/Project Title: AG PACE Program
Target Group: Any business, except traditional production agriculture, that is integrated into the farm operation and will supplement farm income. Includes the purchase of equipment and facilities, equity shares of a value added ag-processing business or condominium storage entity, irrigation equipment, or capital improvements to feedlots and dairy operations.
Description: Provides low-interest rate financing to on-farm businesses. Borrowers will receive an interest rate buy-down of 5 percent. The maximum buy down may not exceed $20,000 per biennium with a lifetime cap of $60,000. Eligible applicants for interest buy down dollars exceeding $20,000 must have a net worth of less than $1,000,000. State Water Commission funds not exceeding $20,000 per borrower may be used to supplement Ag PACE funds for the purchase of irrigation equipment on new irrigated acreage.
Program/Project Title: Biofuels PACE Program
Target Group: Biodiesel facilities that produce biodegradable, combustible liquid fuel derived from vegetable oil or animal fat which is suitable for blending with diesel fuel for use in internal combustion diesel engines, ethanol production facilities that produce agriculturally derived denatured ethanol which is suitable for blending with a petroleum product for use in internal combustion engines, or livestock operations that feed, handle, milk, or hold livestock while using a byproduct produced at a biodiesel or an ethanol production facility. This also includes the purchase or construction of real property, expansion of facilities, and purchase or installation of equipment including a biodigester system.
Description: Provides low-interest rate financing to businesses. Borrowers will receive an interest rate buy-down of 5 percent. The maximum buy down may not exceed $250,000 - $500,000 depending upon type of facility per project.
Program/Project Title: Established Farmer Real Estate Loan Program
Target Group: North Dakota residents involved in farming
Description: This loan program was developed to assist North Dakota residents in the purchase or refinance of agricultural real estate. The maximum amount is $1,000,000 to any one borrower—up to 65 percent of appraised value of property.
Program/Project Title: Beginning Farmer Chattel Loans
Target Group: A North Dakota resident whose principal occupation is farming or ranching with a net worth less than $500,000 and must not have farmed for more than 15 years.
Description: The total loan may not exceed $400,000 with a lifetime cap of $400,000. BND participates in at least 50 percent and not greater than 80 percent of the total loan. Borrower’s net worth must be less than $500,000. BND’s share of the loan will be fixed for five years at 1 percent below BND base, maximum of 6 percent, then adjusted annually at 1 percent below BND base. The lead lender’s share of the loan will be priced at a market interest rate with this rate to be reduced by a maximum of 5 percent. Maximum term of seven years.
Program/Project Title: Farm Operating Loan Program
Target Group: North Dakota resident owning or operating a farm/ranch with debt-to-asset ratio of 50 percent or greater or net worth of less than $500,000.
Description: Program proceeds for operating expenses only or for livestock retention. Variable interest rate at BND base less 1 percent and term no longer than 1 year. The amount of BND’s participation interest in a farm operating loan may not exceed the lesser of 65 percent of the total loan or $400,000.
Program/Project Title: FSA Guaranteed Loan Purchase Program
Description: BND will purchase an FSA Guaranteed portion of a loan at a below market interest rate with assignment of the guarantee from FSA. Proceeds used to purchase or refinance land, improvements to ag real estate, or purchase or refinance farm equipment/livestock. Terms are based on loan purpose and FSA Guarantee.
Program/Project Title: Regular BND Farm and Ranch Participation
Target Group: Any North Dakota farmer or ranch operation.
Description: Proceeds can be used for all ag related activities including real estate, equipment, livestock and operating. Interest rate is fixed or variable, depending on risk, collateral, repayment and terms. No upper lending limit has been established but is generally 90 percent of the total loan or less.
Program/Project Title: First Time Farmer Finance Program (Aggie Bond)
Target Group: North Dakota farmer with no substantial farmland ownership.
Description: Proceeds used for the purchase of ag land, improvements, and depreciable property. Interest rate and term negotiated between farmer and bond purchaser. The loan maximum is $470,100 for agricultural land and improvements. No more than $250,000 of the $470,100 aggregate loan amount can be used for Agricultural Improvements and Depreciable Agricultural Chattel Property. In addition, within the $250,000 limitation, no more than $62,500 can be used for Depreciable Agricultural Chattel Property.
Program/Project Title: Value-Added Agriculture Equity Loan Program (ENVEST)
Target Group: North Dakota resident who may not own more than 25 percent of the project.
Description: A participation loan for the purchase of shares in start-up or expansion of ag processing business intended to process North Dakota grown products. BND’s share of the loan will be variable with a 5-7 year term and may not exceed 70 percent of the total loan amount. The interest rate on BND’s portion is to float at BND base rate less 1 percent. If investing in a feedlot or dairy operation that feeds a byproduct of a biodiesel or ethanol facility, the borrower will receive an interest buydown resulting in a rate of 5 percent below the yield rate with no less than 1 percent, max buydown of $20,000 lifetime cap.
Program/Project Title: Livestock Waste Management System Program
Target Group: Livestock producers
Description: Provides loan participation financing for installing waste management facilities. The borrower’s interest rate is fixed at 5.50 percent for 10 years with a maximum loan amount of $1,000,000. The term may not exceed 10 years. Approval is required from the North Dakota Department of Health.
Program/Project Title: Farm Real Estate Loan Guarantee Program
Target Group: North Dakota residents
Description: Assist farmers with the purchase or the restructuring of agricultural real estate loans by providing a financial institution with a 75 percent guarantee of total loans that do not exceed $400,000 to an individual borrower. The maximum amount the lender may charge may not exceed 3 percent above BND base rate. The guarantee fee may be included in the loan or in the rate charged by the lender. The guarantee term may not exceed five years.