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ND Rural Rehabilitation Corporation |
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The ND Rural Rehabilitation Corporation (NDRRC) is a non-profit PRIVATE corporation organized and incorporated on October 25, 1934, under the non-profit corporation statutes of North Dakota.
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NDRRC makes loans and grants to farmers and ranchers and their families
for REHABILITATION purposes. When conventional sources of farm credit
are unable to assist individual farmers and ranchers, NDRRC works in
conjunction with the Farm Service Agency (FSA) and others on a
participation loan basis. NDRRC furnishes part of the loan and the FSA
or other participants furnish the balance.
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| ELIGIBILITY FOR LOANS: |
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An applicant for a loan must be unable to qualify for other credit, must be of good character, be able to conduct a sound farming operation, and have a reputation for honesty and reliability. The proposed farming operation must show adequate cash flow for a successful farming program. |
| REAL ESTATE LOANS: |
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Most of the loans made by NDRRC are real estate loans. Terms of the loans may be as long as 30 years and interest rate is presently six percent. The interest rate policy is determined once per year, but once a loan is closed, the interest rate is fixed for the duration of the loan. The term of the loan is determined when a loan is analyzed by the NDRRC and the payability determined after a study of the cash flow in each application. Interest rates are fixed. The amount of a loan cannot exceed 65 percent of the value of the land involved. NDRRC requires a first mortgage on the land owned. The payability and cash flow determine the maximum amount of a loan that can be approved. Any other liens on the real estate must be subordinated to the NDRRC. Payments are due once each year and usually are set for January 1. The nature of the farming operation may occasionally change the anniversary date of the note. |
| OTHER LOANS: |
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The NDRRC also makes short-term, first mortgage operating loans in participation with the Farm Service Agency of the U.S. Department of Agriculture. These loans are for crop production purposes and are repaid within one year and become due when the income is available. |
| GRANTS: |
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The ND Rural Rehabilitation Corporation gives grants to young farmers enrolled in the Adult Farm Business Management Education Program through the ND Dept. of Career and Technical Education.
NDRRC also gives a limited amount of Grants to 4-H Ambassadors with the ND 4-H Foundation, Inc.
A limited number of institutional grants may be made. The membership of such entities must be farmers and/or ranchers. The funds granted to these entities will be restricted to purposes primarily benefiting individual farmers and ranchers unable to obtain financing for this purpose from other sources. The amount of grant funds given therein cannot exceed the proportion needed by members who would meet the eligibility requirements for individual loans and grants. Careful study is made of the proposed project to determine whether the need meets those of individual farmers and ranchers who would qualify for individual loans.
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| CONTACT: |
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William R. Fortier, President
222 South 12th Street, Suite 1
PO Box 2485
Bismarck, ND 58502
701-223-5810
Fax: 701-224-8061
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Last Updated ( Tuesday, June 24, 2008 )
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