Ag Commodity Export Enhancement Program
The Ag Commodity Export Enhancement Program is a tool for North Dakota ag commodity exporters to facilitate export sales to foreign buyers. BND works with the Export-Import Bank (Ex-Im) to provide insurance coverage of not less than 90 percent on bulk commodity sales as well as processed ag product transactions. See Ag Commodity Export Enhancement Program Process.
The applicant must be a North Dakota ag commodity exporter. The export of bulk ag commodities and food-grade, value-added ag products are allowed activities.
Ex-Im Bank determines eligibility based on financial strength of the foreign buyer and financial and political stability of the country where the buyer is located.
The program insures either the ag commodity exporter or BND against the non-payment risks of the foreign buyer, depending upon needs.
The minimum transaction is $200,000.
Interest rate is a floating rate based on a fixed spread over a variable rate index determined by BND’s Investment Committee.
Fees: The borrower is responsible to pay:
- A facility fee for administrative costs associated with quoting the loan, gathering the information and making a preliminary determination on whether the borrower may qualify to BND
- Trade broker fees. Because of the complex nature of these transactions, BND will engage an experienced trade broker throughout the process.
- A policy premium to Ex-Im Bank. Policy premium is contingent upon the loan closing and may be eligible to be financed as part of the loan.
The North Dakota exporter wishing to participate in this program should first contact their North Dakota lender. The ND lender will contact BND and advise if they wish to participate in the loan or prefer BND to proceed without participation.
Ex-Im insurance policy
The term of credit facility is a maximum of one year. The underlying eligible receivables to be financed are limited to a maximum of 180 days.