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The SBA Guaranteed Loan Purchase Program provides low interest rate loans to North Dakota businesses with bank financing which includes a loan guarantee from the US Small Business Administration. BND can participate in a SBA guaranteed loan by purchasing the guaranteed portion of the promissory note. The purchase is conditioned upon the borrower receiving the benefit of the lower interest rate on the purchased portion of the note.
BND offers this loan by partnering with local lenders. To apply, contact your lender.
If you have any questions, contact us or call (701) 328-5795.
Bank Participation Loan Application (PDF)
Loan Renewal Application for Existing Participations (PDF)
To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.
If you are not able to access a PDF, please contact us for assistance.
The borrower must be a North Dakota business involved in production, manufacturing, processing or retail trade. Additional funds may be obtained from other funding sources.
Proceeds may be used for start-up costs, to purchase or refinance real property and equipment, expand existing facilities, and meet working capital requirements, including inventories.
There are no maximum loan limits. BND may purchase up to 100% of the guaranteed portion of an SBA guaranteed loan.
Interest rate:
The interest rate may be fixed or variable. A reasonable service fee may be added to BND’s net rate options. If the loan term exceeds five years, only the first five years can be set at the fixed rate option. Thereafter, the loan will change to the variable rate.
| Guaranteed Loan Purchase Program Rates Effective for November 20, 2024 |
||||
| Rate Index | BND Net Rate | + | Lead Lender | =Borrower Rate |
|---|---|---|---|---|
| Quarterly Adj. | 5.634% | + | Service Fee | =Borrower Rate |
| 1-year Adj. | 5.474% | + | Service Fee | =Borrower Rate |
| 3-year Adj. | 5.351% | + | Service Fee | =Borrower Rate |
| 5-year Adj. | 5.379% | + | Service Fee | =Borrower Rate |
| 7-year Adj. | 5.566% | + | Service Fee | =Borrower Rate |
| 10-year Adj. | 5.713% | + | Service Fee | =Borrower Rate |
| Guaranteed Loan Purchase Program Rates Effective for November 20, 2024 |
|
| Rate Index | Quarterly Adj. |
|---|---|
| BND Net Rate | 5.634% |
| + | + |
| Lead Lender | Service Fee |
| =Borrower Rate | =Borrower Rate |
| Rate Index | 1-year Adj. |
| BND Net Rate | 5.474% |
| + | + |
| Lead Lender | Service Fee |
| =Borrower Rate | =Borrower Rate |
| Rate Index | 3-year Adj. |
| BND Net Rate | 5.351% |
| + | + |
| Lead Lender | Service Fee |
| =Borrower Rate | =Borrower Rate |
| Rate Index | 5-year Adj. |
| BND Net Rate | 5.379% |
| + | + |
| Lead Lender | Service Fee |
| =Borrower Rate | =Borrower Rate |
| Rate Index | 7-year Adj. |
| BND Net Rate | 5.566% |
| + | + |
| Lead Lender | Service Fee |
| =Borrower Rate | =Borrower Rate |
| Rate Index | 10-year Adj. |
| BND Net Rate | 5.713% |
| + | + |
| Lead Lender | Service Fee |
| =Borrower Rate | =Borrower Rate |
Fees:
The SBA may require an ongoing guarantee fee. If so, these fees should be added to the interest rate options. BND will charge a $250 set-up fee.
Application by a lead lender is required for BND’s participation. Additional documentation will be required when submitting the request. The lead lender is responsible for servicing the loan.
Financial information about the borrower is not required by BND. However the borrower will need to meet the requirements of the lead lender and SBA.
SBA Guarantee
Equity requirements and credit criteria determined by lead lender and SBA.
Repayment terms are contingent upon the agreement set between the borrower and SBA. Typical maximum terms are:
- Working capital: up to 7 years
- Equipment: up to 10 years
- Real estate: up to 25 years