Ag Disaster Relief Loan Program
This program provides relief for North Dakota farmers and ranchers negatively impacted by extreme weather conditions in 2019. BND has set aside $300 million for this program. Funds will be allocated on a first-come basis.
Applications will be accepted until June 30, 2020 at 5 p.m. CT.
- Chattel: Up to a 10-year amortization with a 5-year balloon. The first 12 months may be interest only
and will convert to permanent to be amortized over the remaining term.
- Real Estate: Up to a 25-year amortization with a 5-year balloon. The first 12 months may be interest
only and will convert to permanent to be amortized over the remaining term.
The borrower must be a North Dakota resident whose principal occupation is farming or ranching or a North Dakota family farm entity. Evidence of operating shortfall for 2019 must be provided. Borrower must show the ability to repay and have an operating line approved for 2020.
Use of proceeds
This program will provide borrowers with the ability to carry over operating shortfalls, term debt payments, and to restructure existing debt, including BND’s Farm Financial Stability Program.
BND will participate up to 75 percent of the total loan amount, not to exceed $1.0 million on chattels and $2.0 million on real estate.
Interest rate and fees
- BND Interest Rate: BND to net 3.50% fixed for up to five years.
- Lead Lender service fee: The lead lender will have the option to add up to a 0.25% service fee on BND’s participation.
- Lead Lender Rate: The interest rate charged on the lead lender share of the loan may not exceed BND’s Base Rate (Wall Street Journal Prime Rate) plus 2.0%.
- BND Fees: BND will receive a $250 origination fee.
Maximum loan to value ratio (LTV): 75% on chattels and 80% on unimproved real estate. Collateral to be shared pro-rata. For collateral purposes, any FSA loan secured by chattels or real estate may require FSA subordination.
How to apply
BND offers this loan by partnering with local lenders. This program may be used in conjunction with other eligible BND programs. To apply, contact your lender.