This participation Loan Program provides assistance to farmers that have a net worth of $300,000 or less. This loan program offers a favorable interest rate to borrowers seeking to purchase or refinance livestock, equipment, and farm real estate or the restructuring of operating expenses.

The Family Farm Loan Program requires the borrower be a North Dakota resident whose principal occupation is the production of an agricultural commodity or livestock on a family farm. A 'family farm' is an operation where the majority of the labor is performed by the farmer and the farmer's family. The BND's maximum participation is $250,000 or 90 percent of the total loan, whichever is less.

The Livestock Loan Guarantee Program assists North Dakota commercial livestock feeding operations or owners of new or expanding dairy operations operating under the rules established under the ND Health Department. Uses for this program are:

1. Livestock Purchase
   • Maximum guarantee coverage up to 85% of the total loan.
   • Maximum amount may not exceed $1 million per commercial feeding operation.
     • Feeder Livestock
       • 2 year guarantee
       • Maximum loan amount - 85% of total livestock purchase price and total cost to bring livestock to project weight.
       • May require price protection and/or insurance.
     • Breeding and Dairy Livestock
       • 7 year guarantee.
       • Maximum loan amount 75% of total cost.
2. Equipment purchase or construction of facilities and improvements.
   • Maximum guarantee coverage up to 75% of the total loan.
   • Maximum guarantee amount not to exceed $5 million per livestock feeding or dairy operation.
   • Maximum loan amount up to 75% of collateral value.
   • Maximum term up to 15 years.
   • Guarantee fee will be charged as a percentage of the guaranteed portion.

The Flex PACE Program is a special feature of the PACE Program that will provide interest buy down to non-PACE qualifying businesses where the Community determines eligibility and accountability standards. Communities have the ability to provide assistance to business that would not meet the current requirements of PACE such as: jobs rentetion, technology creation with no new jobs and includes retail, service, tourism, and essential community businesses. There is a $150,000 per loan per biennium maximum buy down under this program.

The Biofuels PACE offers financial assistance to borrowers who are not eligible for regular PACE Funds, there is no community matching funds or job creation requirements and the funds may not be used to refinance existing debt or relocation. Qualified businesses:

Biodiesel Production:

• Production facility must be located in North Dakota.
• Facility must produce biodegradable, combustible liquid fuel derived from vegetable oil or animal fat.
• Fuel must be suitable for blending with diesel fuel for use in internal combustion diesel engines.
• Ownership:
  • Ag producers must hold at least 10% interest in the facility.
  • Residents of North Dakota must own at least 50%.
• Project Maximum - $500,00 of Interest Buy Down
• Loan Terms - 7 to 12 years
• Equity - 40% to 50%

Ethanol Production:

• Production facility must be located in North Dakota.
• Facility must produce agriculturally derived denatured ethanol.
• Fuel must be suitable for blending with a petroleum product for use in internal combustion engines
• Ownership:
  • Ag producers must hold at least 10% interest in facility
    
  • Residents of North Dakota must own at least 50%
• Project Maximum - $500,000 of Interest Buy Down
• Loan Terms - 7 to 12 years
• Equity - 40% to 50%

Feedlot or Dairy Operations:

• North Dakota operation must feed a byproduct of ethanol or biodiesel facility
• Project Maximum - $250,000 of Interest Buy Down
• Loan Terms - 10 to 15 years
• Equity - 40% 

Retailer Pumps:

• Pumps must be installed by a North Dakota biofuels retailer
• The retailer must dispense and distribute biodiesel blends containing a minimum of 5% biodiesel or gasoline blends with greater than 60% ethanol
• Project Maximum - $10,000 of Interest Buy Down to any single location of a biofuels retailer
• Loan Terms - 5 to 7 Years
• Equity - 25%

Condo Grain Storage:

• North Dakota licensed grain handling facility must provide condominium storage of grain that is principally intended for the production of biofuels.
• Project Maximum - $50,000 of Interest Buy Down
• Loan Terms - 5 to 10 Years
• Equity - 25% to 40% 

This program is designed to assist in business start-up financing by providing a financial institution with an 85 percent guarantee of a loan not to exceed $100,000. The borrower must be a North Dakota resident, who has graduated from high school or received a general equivalency certificate, and has had some training by education or experience in that type of revenue producing enterprise. The applicant(s), must have a net worth of less than $200,000.

An originating institution is required to apply for BND's guarantee and is responsible for servicing the loan. The lender may propose any debt structure which is typical or reasonable for the type of activity being financed, and may charge a rate not to exceed 3 percent above BND base or NY prime. The BND guaranty term may not exceed 5 years. BND will charge a guarantee fee of .5 percent per year or a one time fee of 1.5 percent of the guaranteed portion. The guaranty fee may be included in the loan or in the rate charged by the lender.

This loan program provides a low interest rate designed to help students pay for their education beyond high school. The program is not designed to meet all of the student's post high school education expenses.

The Federal Stafford loan program requires the student (1) be a U.S. citizen or a permanent resident meeting eligibility requirements, (2) be enrolled at least half-time at an eligible school (eligible schools are determined by the federal government) and maintain satisfactory academic progress, and (3) not be in default on any other student loan or owe a refund on any grant. Under this program, the Federal Government pays the loan interest while the student is in school.

This loan program provides funds for education expenses to parents of dependent students. Under this program, a parent may borrow up to the cost of education minus other aid received for each dependent student. The loan limit does not include amounts borrowed under the Federal Stafford Loan Program.

Requirements for program eligibility include (1) the borrower be the natural or adoptive parent or legal guardian of a dependent student who is enrolled at least half-time in an eligible school and maintains satisfactory progress, (2) neither the parent nor the student can be in default on any other student loan or owe a refund on any grant, and (3) the borrower is credit worthy.

This loan program helps borrowers to consolidate outstanding loans resulting from financing their higher education.

Eligible loans include: (1) Federal Stafford, PLUS, PLUS Pro, and SLS loans; (2) Perkins Loans (formerly National Defense/Direct Student Loans); (3) Health Professions Student Loans; (4) Health Education Assistance Loans; (5) Federally Insured Student Loans; (6) Nursing Student Loans; and (7) Federal Direct Loans.

To qualify for a Federal Consolidation Loan, the borrower must: (1) be in grace period or have entered repayment on each loan chosen for consolidation; (2) certify that he or she does not have another Federal Consolidation Loan application pending; and (3) if in a default status on any loan(s), have made satisfactory repayment arrangements with the holder of each defaulted loan (only Title IV loans are eligible for consolidation after default).

The interest rate for this loan is based upon a weighted average of the underlying loans rounded up to the nearest 1/8 percent, with a cap at 8.25 percent. Repayment of the loan must begin within 60 days of disbursement and the term of the loan ranges from a minimum of 10 years to a maximum of 30 years based upon the amount borrowed.

This loan program was established as a supplemental source of loan funds to assist students and their families in meeting the costs of the students' higher education not met from federal financial aid programs. The DEAL can assist high school students with financial costs while taking dual credit classes. The DEAL program is offered exclusively by the Bank of North Dakota (BND) and is a state owned and guaranteed loan program.

To be eligible a borrower must be: (1) a United States citizen or permanent resident; (2) accepted for enrollment or currently in attendance at an eligible school; (3) making satisfactory academic progress as determined by the eligible school; (4) not in default on any federal or state loans; and (5) meet BND's credit standards.

A DEAL loan borrower, or co-signer if the borrower does not qualify, must meet certain credit criteria including but not limited to a satisfactory credit report. The minimum DEAL loan amount is $500. The maximum amount that can be borrowed is equal to the cost of attendance as determined by the school for the loan period minus all other financial aid

The deal interest rate is fixed for the life of the loan.

BND provides a DEAL Consolidation Loan Program. Borrowers must have at least one DEAL loan to participate in this program. Non-DEAL alternative loans may be included in this Consolidation program if the loans were certified by the school and used to pay for qualified higher education expenses.

A borrower has the option to choose a fixed or variable interest rate with terms up to 25 years based on the amount of the loan. 

Bank of North Dakota Commercial Loan Programs Matrix (PDF File)

Bank of North Dakota Participation Lending Programs Matrix (PDF File)

Bank of North Dakota
1200 Memorial Highway
PO Box 5509
Bismarck, ND 58506-5509
701-328-5600 or 1-800-472-2166
Fax: 701-328-5632

http://www.banknd.com